Key industries 7
Size: Total sales in food and beverages sector accounts for 9 per cent of the sales by industries in the state (2002).
Agriculture contributes about 22.5 percent to the state income and is the second largest exporting sector from the state at USD 640 million. Andhra Pradesh is one of the high-ranked states in the country in the production of horticulture crops. The state accounts for about 30 percent of the total egg exports from the country at 60 million.
- Largest producer of eggs (19 per cent) and 30 percent of India's exports (2001)
- 20 per cent of India's flower production (2000-01)
- Ranks third fruit production in the country at 5 million tonnes (2001-02)
- The state ranks first in production of mangoes at 2.4 million tonnes
- Largest producer of citrus fruits at 1.2 million tonnes
- Third largest vegetable processing installed capacity at 306,000 M.T in 2001
|The total value of marine exports from the state is about USD 325 million against a total of USD 1 billion from the country. The state has the highest capacity of central warehousing centres at 13.4 lac tonnes (2003), of which 95 per cent are covered.
- 58 Flour mills in 2002 (5th highest)
- 234 cold storages in 2002
- Ranks third in production of fish at 676,000 tonne in 2001-02
- Ranks fourth jute production at 0.6 million bales of 180 Kg each in 2001-02
The state is keen to improve the research infrastructure in the agro sector and has established several organisations. Several MNCs like Conagra, Krafts foods amongst others have established their facilities in the state.
Mineral based industry
Size: Total sales in mining sector accounts for 10.6 per cent and non-metallic sector for 4.7 per cent of the sales by industries in the state (2001).
Andhra Pradesh is the second largest storehouse of Mineral Resources in India. Of 30,400 MT limestone reserves, only 20.5 MT is consumed and largely for the production of cement. With 40 existing cement factories, Andhra Pradesh is the second largest producer of cement in India at 15 million tons per annum.
Larsen and Toubro’s plant with a maximum capacity of 6 million tons per annum established with USD 184 million, is the largest in Asia. Gujarat Ambuja Cements Ltd. plans to set up a plant with USD 160 million and a capacity of 2 million tons per annum.
- Country's highest value of mineral production at USD 1 billion in 2001-02
- Ranks second in the production of non metallic minor minerals at USD 222 million in 2001-02
- Largest producer of Barytes at 912,616 tonne in 2001-02
- Largest producer of high quality asbestos USD 400 per tonne in 2001-02
- Largest producer of Felspar (69,200), Vermiculate (3056) and accounts for 27 percent of country's reserves
- Ranks second in Steatite production at 44,221 tonne in 2001-02
- Largest producer of Mica at 990 tonne in 2001-02
- Only producer of coal in the entire South India and produces at 30 million tonnes annually
Leather and Leather Products
Size: With about 34 large and medium tanneries, the state produces 40 million square feet of processed hides and skins per annum.
Andhra Pradesh with a livestock population of more than 46 million is a major producer of hides and skins in India. The state contributes about 19 million pieces per annum, that is, 10 per cent of the country's raw material8. The leather industry in Andhra Pradesh produces a large range of products for the domestic and international markets.
Textiles and Apparel
Size: Total sales in textiles sector accounts for 4.5 per cent of the sales by industries in the state (2003).
The state is one of the major exporters of textiles in the country at USD 90 million in 2003. There are about 1,050 weaving units with a production capacity of 750 million meters of fabrics in 2003. The state is one of the leading textile processing centres with over 100 units, at total processing capacity of 13 million metres of cloth per annum. The average production of medium and superior long staple cotton is 2.6 million bales. There are around 70 spinning mills in the state with a total spindlage of 18.3 millions and 9 open end spinning mills with 5716 rotors9 .
- Ranks second in production of raw silk at 3.8 million kg (2000)
- Ranks fourth in production of wool at 3.4 million kg (2001-02)
- Highest handloom development centres at 397 (2000-01)
- Ranksfourth in the number of textile mills at 98 (2003)
The growth is attributed to highly suitable soil and other climatic conditions for cultivation of cotton crop, long traditions to grow cotton and availability of labour at low wage rates.
Size: Total sales in machinery sector accounts for 12.5 per cent and metal products for 17.9 per cent of the sales by industries in the state (2003).
Andhra Pradesh has a well-performing engineering industry producing a range of intermediate and final goods such as foundry and forging items, machine tools, auto components, testing machines, material handling equipment and components for defence production. The exports from this sector stood at USD 237 million in 2002-03. The state is the largest compressor-manufacturing centre in the country. Many global players like Tecumseh, BPL and Electrolux amongst others have established their manufacturing facilities in the state.
Automobile sector is one of the emerging sectors in the state with more than 20 auto–component-manufacturing companies. Mahindra & Mahindra has a modern facility at Zaheerabad, with a capacity of over 10,000 units per annum near Hyderabad where some of its important products, jeeps and voyager vehicles, are being manufactured.
Size: Second largest domestic tourist visits at 22.3 per cent of the total among other states and is in the top quartile in foreign tourist visits in the country.
Andhra Pradesh is a vast and varied state endowed with rich culture and heritage and abundant natural and human resources. The tourism in Andhra Pradesh attracts a large number of people from all over the world.
Andhra Pradesh is known for the famous Sri Venkateswara temple at Tirupati, Charminar, Salar Jung Museum, Golconda Fort in Hyderabad and Buddhist viharas at Nagarjunasagar. Andhra has a nearly 1000 km-coastline with eight of its 23 districts having direct access to the sea. Famous amongst its beaches are Visakhapatnam Bheemunipatnam, Kakinada, Chirala, Kalingapatnam and Mypad.
"Hyderabad (Capital of Andhra Pradesh) is the new Silicon Valley of India."
– Managing Director of a leading consultancy firm
Size: Achieved above 100 percent CAGR during 1992-2000 with exports rising from USD 1 million in 1992-93 to USD 770 million in 2002-2003.
With about 23 percent10 of the total software professionals in the country, Andhra Pradesh has emerged as one of the leading software exporters in the country.
MNCs like Microsoft, IBM, Motorola, Oracle, Baan and Wipro have set up their operations in Hyderabad. Some of the other major players in the sector are: CMC Limited, DE Shaw, Infotech Enterprises, Intergraph, Mentor Graphics, Metamor, Ram Informatics Ltd, Sierra Optima, SQL Star International Ltd, Visual Soft amongst others.
Bulk Drugs and Pharmaceuticals
Size: Total sales in chemicals sector accounts for 21.3 per cent of the sales by industries in the state (2003).
Hyderabad has emerged as a major drug-manufacturing city of the country with a presence in the global market. Andhra Pradesh contributes about one-third of the total production of pharmaceuticals in the country. During 2000-01, the state produced USD 462 million of bulk drugs and USD 1,150 million of formulations against the total production of USD 1.66 billion and USD 3.9 billion respectively in the country.
The exports from the state stand at USD 500 million in 2002-03 with an annual growth rate of more than 20 per cent and the sector accounts for about 18 per cent of the total exports from the state.
- Indian Institute of Chemical Technology
- Centre for Cellular and Molecular Biology
- National Institute of DNA Fingerprinting
- National Institute of Nutrition, Central University
Andhra Pradesh has pioneers in the fields of medical/human and animal healthcare biotech like Shanta Biotechnics, Bharat Bitech, Krebs Biotech, Biological E. Ltd., Jupiter Biosciences and Dr. Reddy’s Laboratories among others. Most of the companies have set up their R&D facilities in the state thus making it the pharmaceutical capital in the country.
|The Hyderabad Bio-Cluster |
Hyderabad, the capital of Andhra Pradesh has emerged as an important bio-cluster with CCMB, ICRISAT, and Osmania University forming the academic backbone and companies like Shanta Biotechnics, Bharat Biotech, Biological E and Dr Reddy's Laboratories forming the industry cluster. The presence of a large pharmaceutical industry in Hyderabad has caused this bio-cluster to focus largely on vaccines and bio therapeutics.
7Source for sizes (sales) of various sectors: CMIE Prowess data base
8Source: Government website
9Source: Government website
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