Andhra Pradesh, led by Chief Minister Chandrababu Naidu and his son, Minister Nara Lokesh, is mounting an aggressive challenge to Bengaluru's dominance in attracting investments, particularly in the technology and manufacturing sectors. With a focus on advanced manufacturing, green energy, and semiconductors, the state is unveiling massive investment proposals and signaling a strong comeback after a period of political uncertainty.
Strategic Initiatives and Policy Support
The Andhra Pradesh government has launched a series of policies aimed at creating a robust digital and electronics ecosystem. These include the IT & Global Capability Centre Policy, Electronics Manufacturing Policy, Semiconductor & Display Fab Policy, Data Centre Policy, and Innovation & Startup Policy. These policies offer capital subsidies, rental and power incentives, support for co-working spaces, job creation subsidies, and employee welfare schemes. For IT companies, the government is offering a hiring subsidy of up to Rs 3 lakh per employee, with additional benefits for women and disadvantaged groups. Electronics projects are eligible for capital subsidies ranging from 20% to 30%, with customized packages for large-scale investments.
Nara Lokesh, Minister for HRD and IT, has emphasized a shift from "Ease of Doing Business" to "Speed of Doing Business," which involves fast-tracking land allotment and power connectivity to ensure swift grounding of approved industrial projects. This approach has helped the state secure significant investment commitments, including a $15 billion investment from Google to establish an artificial intelligence (AI) hub and data center in Visakhapatnam.
Investment Inflows and Job Creation
Andhra Pradesh has been attracting substantial investment commitments. Nara Lokesh stated that the state has secured close to $120 billion worth of firm commitments in the last 17 months. The State Investment Promotion Board (SIPB) has approved investment proposals worth ₹1,01,899 crore from 26 industries, with the potential to generate 85,870 jobs. The total investment inflows under the current government have reached ₹8,08,899 crore, with the potential to create employment opportunities for 7.05 lakh people.
In Kuppam, Chief Minister N. Chandrababu Naidu laid the foundation stones for seven major industries with a total investment of ₹2,203 crore, expected to generate over 22,000 direct and indirect employment opportunities. Another eight industries with a total investment of ₹6,339 crore are set to come to Kuppam soon, creating 43,000 more jobs.
Strategic Development and Infrastructure
The government is developing three mega cities – Visakhapatnam, Tirupati, and Amaravati – with integrated master plans. Visakhapatnam is being developed into a Mega City by merging its surrounding areas up to Vizianagaram and Anakapalli. Amaravati and Tirupati will be developed as major hubs for tourism and IT. The state is also focusing on developing 15 industrial zones under a cluster-based policy and creating a land bank to encourage private owners to provide land for industrial use. Andhra Pradesh has a robust infrastructure of roads, rail, and ports, including six operational ports.
Confrontation and Competition
The aggressive pursuit of investments by Andhra Pradesh has led to a confrontation with neighboring Karnataka. After securing the Google AI hub investment, Nara Lokesh took a veiled dig at Bengaluru, highlighting Andhra's investment traction and Karnataka's infrastructure constraints. He has also emphasized that Andhra Pradesh is competing for every rupee of investment and is ready to compete with every state possible to create jobs.
Ambitious Targets and Vision
Chandrababu Naidu has set an ambitious target of achieving 17.1% growth for the next fiscal year and has directed officials to work diligently towards this goal. The government aims to create 2 million jobs and decentralize development across every region of the state. Andhra Pradesh aims to become a global IT and GCC powerhouse, offering world-class infrastructure, unparalleled talent, and an ecosystem of continuous innovation. The state government envisions a future built on sustainability, innovation, and inclusivity, aligning state initiatives with national and global green goals.
