Suresh Rayudu Chitturi is a second-generation industrialist. His family has been in the poultry business and has established Srinivasa Hatcheries, of which he is the Managing Director.
He has been steering CII-Andhra Pradesh as Chairman for the past year. It has been challenging, as the State started off with a deficit budget, no capital and a huge promise of special status to industries.
On the positive side, it has got a stable political dispensation headed by reform- and corporate-friendly N Chandrababu Naidu as CM. Speaking to
The Industrial climate in the State is very positive. The Government’s proactive policies and launch of an industry mission and other sector specific missions have provided the required clarity for attracting investments.
A very supportive administration has helped AP get second rank in ease of doing business as per the World Bank and DIPP Study report.
Over the last year, nearly 1,500 industries, both big and small, have signed up for investment. Investors are looking at long term political stability, implementation of GST, and consistency in rules.
What are your views on the State industrial policy initiatives?
The State Industrial Policy, providing time-bound clearances to industry through a single desk, is a welcome sign.
As per the new policy all required clearances need to be cleared within 21 days. Any delay shall be deemed approval, which is a positive sign.
However, the State requires help from the Centre for faster implementation. With neither special status nor special incentives announced, there is a ‘Damocles Sword’ hanging. The NITI Aayog report is awaited; yet the CM is doing his best.
Which sectors does the CII think are key for the State to focus on for quick growth?
It is important to focus on the growth of industry. A double-digit growth rate of 12 per cent will be required to meet the target of per capita income of $16,500 by 2029-30.
To achieve the level of development envisioned in the Vision 2029, the State will have to shift from the current annual GSDP growth rate of 7 per cent to a higher trajectory of 12 per cent.
Vision 2029 requires increasing the GDP to approximately ₹14 lakh crore by 2029. In this regard, the industrial sector is envisaged as a key growth driver.
It is targeted that the contribution of the industrial sector to GSDP would increase from the current 20.7 per cent to 25 per cent by 2020, which would mean a long term (2029) target of 30 per cent contribution to GSDP.
This translates to an annual growth rate of over 14 per cent for the sector. This requires Andhra Pradesh to position itself as a highly competitive destination, not only at the national but also regional and global levels.
Some of the focus sectors could be Agri and allied industries, manufacturing, infrastructure and services.
Has farmers’ debt waiver, election sops impacted growth? What is the CII view?
We believe that growth should be inclusive. The benefits of economic growth should reach all people.
In this context the Government has the mandate to address all the stakeholders’ needs. Addressing the issues of farmers by waiving off the debt is one promise made by the Government. However, there is a need to rationalise subsidies based on needs of poor people.
Job creation, new capital development and skill training were key hopes for the youth. What is the progress on these fronts?
We could see a lot of progress on capital development, skill training and creating new jobs. Within one year the Government was able to acquire necessary land for the capital and prepared the master plan.
Constitution of skill development mission at a State level will address the shortage of skilled man power in the industry.
At the same time, the vigorous promotion of the State as the best investment destination has provided a lot of interest. Sri City in Chittoor has been facilitating skill development for industry there.
Chandrababu Naidu is widely expected to replicate his Hyderabad-IT model of success, plus his investor friendly policies. Is he delivering?
I feel the positive impression abut Naidu at a global level would certainly help.
He has done the right thing by showcasing opportunities. As the State has a deficit budget, it is equally important to attract private investments.
How has the new Capital building exercise excited the industry, businesses, global investors? What role is CII playing?
CII is playing a proactive role. In association with the Government of Andhra Pradesh, we have organised an International mission to China, Japan and Singapore.
In order to develop entrepreneurship, CII, in association with the Government, is establishing a Center of Excellence for Entrepreneurship in the capital region.
What are the initiatives, plans and events lined up by CII this fiscal year?
CII is well spread with presence at Vijayawada, Visakhapatnam and Tirupati regions. Several programmes are organised by our offices for enhancing quality and competitiveness of the industry.
In order to promote AP, we will be organising the CII Partnership Summit at Visakhapatnam in January 2016.