Andhra Pradesh is aggressively pursuing an ambitious roadmap to enhance its business environment, focusing on ease and speed of doing business to attract investment and spur economic growth. The state government, under the leadership of Chief Minister N. Chandrababu Naidu, is implementing a series of reforms and policies aimed at streamlining procedures, reducing compliance burdens, and fostering an investor-friendly ecosystem.

Key Initiatives and Policies

• Industrial Development Policy 4.0 (2024-29): This policy aims to build a robust industrial sector that significantly contributes to the state's economy and creates large-scale employment. It focuses on balanced, resilient, and sustainable growth, green energy transition, integration into the global value chain, and adoption of Industry 4.0 and AI technologies. The policy is valid for five years from October 26, 2024.
• Business Reforms Action Plan (BRAP): Andhra Pradesh has been consistently ranked as a top achiever in implementing BRAP, a program by the Department for Promotion of Industry and Internal Trade (DPIIT) to rate states' performance on ease of doing business. The state proactively executes BRAP by formulating detailed department-level action plans to ensure efficient implementation of reforms.
• Self-Certification Scheme (SCS) 2025: The state government has revised the Self-Certification Scheme (SCS) 2025 under the AP Building Rules, 2017, to improve ease of doing business, expedite approvals, and curb corruption in the building permit process. The updated rules extend self-certification to white category industries and non-high-rise residential buildings. The scheme empowers citizens and licensed technical personnel (LTPs) with a trust-based approval mechanism and instant online permissions through the Online Building Permission System (OBPS).
• Online Allocation of Raw Materials: The state government is taking significant measures such as the online allocation of raw materials like coal and ethanol through the A.P. Single Desk Portal.
• MSME Development Institute: To support MSMEs, the government is planning to establish an MSME Development Institute in Vijayawada, in addition to the existing one in Visakhapatnam.

Emphasis on Key Sectors

Andhra Pradesh's industrial policy identifies "sustenance" and "propelling" sectors as target areas for growth.

• Sustenance Sectors: These are sectors with a well-established presence in the state, contributing substantially to its GSDP and employment. They include chemicals and petrochemicals, food, agro, and marine products, textiles and apparel, metals and alloys, and cement and building materials.
• Propelling Sectors: These sectors are rapidly expanding and offer the potential to integrate Andhra Pradesh further into global supply chains. They include electronic manufacturing and renewable energy and electric vehicles.

Economic Growth and Investment

Andhra Pradesh has achieved the second-highest economic growth rate in India for 2024-25, with a growth rate of 8.21%. The state's growth can be attributed to its strong agriculture, manufacturing, and services sectors, with significant investments in IT, electronics, automobiles, and renewable energy. The government reports receiving Rs 8 lakh crore in investments and creating five lakh job opportunities in the last 10 months.

Future Initiatives

• The government is planning to release a series of policies, including those related to liquor, revised free sand, industrial, MSME, skill development, horticulture, and solar energy.
• The state government is also bringing a Vision Document 2047 for Andhra Pradesh, aligning with the central government's Viksit Bharat 2047 initiative.
• The government plans to establish 175 new industrial parks across the state, with a focus on cluster development.

By implementing these policies and initiatives, Andhra Pradesh aims to create a conducive business environment, attract investments, and achieve sustainable economic growth.