AP Industries Minister Unveils Game-Changing New Industrial Policy to Sri City Corporate Leaders

Sri City, October 29, 2024: In an interactive session held today at Sri City, the Hon’ble Minister of Industries, Commerce and Food Processing, GoAP Mr. T.G. Bharath met with CXOs and senior executives of industries operating in the integrated business city to present the newly launched Andhra Pradesh’s Industrial Policy 4.0. The policy, crafted under the visionary leadership of Hon’ble Chief Minister Mr. N. Chandrababu Naidu, aims to position Andhra Pradesh among the top global investment destinations, targeting to attract ₹30 lakh crore investments and over $10 billion foreign investment during the next five years. Key areas of focus include MSMEs, electronics, food processing, clean energy, and industrial parks.

The session opened with Mr. Bharath outlining the policy’s foundational principles, emphasising its role in catalysing economic transformation through speed, efficiency, and sustainability. He articulated the government’s vision of building a globally competitive Andhra Pradesh that champions innovation and international collaboration while fostering sustainable industrial development. The minister actively sought industry feedback, recognising the crucial role of business insights in policy refinement.

Following Minister’s remarks, Dr. N. Yuvaraj, IAS, Secretary, Industries and Commerce, GoAP provided an in-depth overview of the policies, focusing on initiatives like the ‘Speed of Doing Business’ for streamlined processes, investor-friendly approach, advanced infrastructure plans with industrial parks, and sector-specific incentives. He said that Andhra Pradesh is pioneering a new industrial policy with a multi-tier investment framework for Private Industrial Parks (PIPs). This policy categories parks by size (nano to mega) and offers incentives for various investment tiers (sub-large, large, mega). The state aims to attract significant investments in electronics manufacturing, creating jobs and boosting economic growth

Prioritising MSMEs, green energy, electronics, and food processing, the policy offers subsidies up to 40%, a unique 6% de-carbon subsidy, and streamlined processes to ease business operations. Export targets are set to double to $40 billion, with a focus on sectors like automotive, Pharma, electronics, drones, IT and aerospace. The “One Family – One Entrepreneur by 2030” initiative, 175 planned industrial parks, and dedicated funds for MSMEs and electronics aim to drive job creation and sustainable growth across the state. He highlighted that early investments in mega and large industries will receive special incentives, and detailed the offerings for MSMEs and common categories. Dr. Yuvaraj reiterated the government’s dedication to making Andhra Pradesh the preferred choice for global investors with appropriate interventions to reduce cost of production and to increase speed of doing business.

Dr. Ravindra Sannareddy, Founder Managing Director, Sri City thanked the Minister and Secretary for organising the session to introduce the new industrial policy and its key aspects to the Sri City industrial community. He noted, “This initiative highlights the government’s proactive approach in positioning the state as a prime destination for global investment.”

The attending business leaders responded positively to the government’s initiatives, particularly praising the ‘Speed of Doing Business’ framework for its potential to eliminate bureaucratic delays and provide real-time support. While appreciating the targeted incentives for MSMEs and electronics sectors, they requested for the quick reimbursement of pending incentives. They emphasised the importance of maintaining policy flexibility to address evolving industry needs and a provision for redressal of any grievances. They emphasised the importance of workforce development, particularly targeting women, and promoted increased investment in vocational training programs tailored to industry needs.

The Minister and the Industries Secretary toured the industrial area, observing the bustling activity firsthand. They visited Daikin India’s production facility and received a briefing on the ongoing operations.

The meeting concluded with a shared commitment between government officials and industry representatives to transform Andhra Pradesh into a leading global industrial destination, marking a significant step toward realising the state’s economic vision.