New industrial investments in Andhra Pradesh have been gaining momentum with inflows of over ₹14,000 crore during the year so far.
According to latest Government data, Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has allotted 1,734 acres of land to 423 units up to December 31, 2021. These units have an employment potential of 37,349 and with an investment proposal of ₹7,445 crore,
Committed investments
The committed investments in the State included those by Aditya Birla Fashion and Retail Ltd (₹110 crore) in a garments factory for blouses and trousers at Pulivendula in Kadapa district, a plywood unit at Badvel with ₹956 crore by Century Plyboards India, Grasim Industries (₹861 crore) and AIL Dixon Technologies Pvt Ltd (₹207 crore) in a camera manufacturing unit and a facility to make computers and tablets., according to officals.
Last month, Andhra Pradesh Economic Development Board inked MoUs with investors including Causise-Mobility, Regency Group, Tabreed, MULK Holdings, Sharat Group, Fluent Grid and Trogo General Trading LLC involving investments of ₹5,150 crore across sectors such as Electric Vehicles, FMCG, infrastructure, manufacturing and logistics.
GVA growth rates
Attracting new investments in industry is vital for the state, which has lost Hyderabad after the bifurcation in 2014. The overall economic growth of the State is primarily driven by the Agriculture and Allied sector which has registered GVA growth of 11.27 per cent in 2021-22. The GVA growth rates of Industry and Services Sectors are 12.78 per cent and 9.73 per cent respectively.
Industry sector in the State at Constant (2011-12) prices as per the Advance Estimates for the year 2021-22 is expected to register a growth rate of 12.78 per cent and is estimated at .₹1,78,723 crore as against ₹1,58,473 crore in 2020-21.
Mining & Quarrying and Electricity, Gas, Water Supply, Remediation and other utility services sectors have registered impressive growth rates of 19.53 per cent and 11.10 per cent respectively whereas manufacturing and construction sectors registered a growth rate of 12.33 per cent and 11.30 per cent respectively.
``If the long-pending State Capital issue is resolved and if state government can lend more focus on improving infrastructure in the State, Andhra Pradesh can be a better destination for investments in view of the natural advantage such as vast coastline it enjoys,’‘ said a senior executive of a Pharma company which has presence in the State.