Andhra Pradesh Cabinet on Wednesday approved AP Industrial Development Policy 4.0 (2024-29) along with a target of attracting ₹30 lakh crore investments apart from $10 billion foreign investment over next five years along with other policies for MSMEs, clean energy, green energy, electronics and food processing. 

“The industrial policy is unique with first of its kind de-carbon subsidy for the green industries. We want to rebuild the image of brand Andhra Pradesh which has been damaged. AP will be transformed into a global manufacturing hub by attracting domestic and foreign investors,’‘ Chief Minister N Chandrababu Naidu told newspersons in Amaravati after the Cabinet meeting.

The export target has been set at $40 billion as against $20 billion now. The focus areas in the industrial policy will be automobile, MSMEs, pharma, food processing and aerospace among others, Naidu said.

The new policy will offer investment subsidies ranging from 12 to 40 per cent, 6 per cent de-carbon subsidy, 8 to 10 per cent employment subsidy, among others.

“Cost of investments in land, efficient power, water and other infrastructural facilities will be reduced along with rationalisation of duties, providing proper guarantee and security for investors. Acquisition of skills and increasing productivity in skills will also be ensured,’‘ the Chief Minister said.

For ensuring speed of doing business with interventions such as time-bound single window clearance for investors, hand-holding for foreign investors, integrated data management system and re-engineering of regulatory processes and procedures will be offered.  The govt plans to set up 175 industrial parks which will come up in each of the constituencies in the State.

The Micro, Small, Medium and Enterprises (MSMEs) will be promoted with a slogan of ‘One Family - One Entrepreneur’ along with facilitation, incubation and export promotion, Naidu said: “A range of standard and special investment subsidies will also be offered to MSMEs depending on the quantum of investment. A ₹500 crore dedicated corpus will be created.”

As part of the food processing policy, the government set a target of attracting ₹30,000 crore investments along with creation of 3 lakh jobs . A slew of incentives will also be offered for investments in the food processing sector for technology upgradation.

The electronic policy aims at attracting ₹84,000 crore investment over next five years with generation of 5 lakh new employment opportunities. It will also offer permission for women to work during nights wherever required. 

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