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About Andhra Pradesh – Industries, Economy, Infrastructure, Exports, GSDP

October, 2017

Andhra Pradesh (AP) is located in the Southern peninsula of India and has a coastline of 974 km. The state of Andhra Pradesh is bound by Chhattisgarh on the north, Odisha on the northeast, Telangana and Karnataka on the west, Tamil Nadu on the south, and the Bay of Bengal on the east.

The erstwhile state of Andhra Pradesh has been bifurcated into two states, Telangana and residuary Andhra Pradesh (Seemandhra), by the Andhra Pradesh Reorganisation Act, 2014 or the Telangana Act. The act consisted of the aspects of division of assets and liabilities, the boundaries of the proposed new states and status of the capital city Hyderabad after the separation of the state.

The state has well-developed social, physical and industrial infrastructure and virtual connectivity. It also has good power, airport, IT and port infrastructure. At current prices, Andhra Pradesh’s gross state domestic product (GSDP) was estimated at US$ 92.17 billion over 2015-16. Between 2004-05 and 2015-16, the average annual GSDP growth rate was 10.67 per cent.

The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 11.57 billion during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).

The Government of Andhra Pradesh has proposed a budget of US$ 20.72 billion for FY 2016-17. Special emphasis has been laid in the expenditure budget on education (US$ 2.67 billion), irrigation (US$ 1.09 billion), health (US$ 932 million) and energy sector (US$ 614.2 million). Under 2016-17 state budget, the Government of Andhra Pradesh announced to invest US$ 486.44 million for the development of roads and buildings in the state.

As of July 2016, the state had 19 operational SEZs in the state across diversified sectors which include textiles and apparel, food processing, footwear and leather products, multi-product, pharma, IT SEZs etc.

Seemandhra, comprising Rayalaseema and coastal Andhra, has most of the power projects of undivided Andhra Pradesh. Coal-based power plants are mostly located in the state due to proximity to the ports. As of April 2016, Andhra Pradesh had a total installed power generation capacity of nearly 15,311.17 MW.

It is the first state in the country to have enacted the Industrial Single Window Clearance. The Act made it compulsory for new industries to register with the single-window to obtain clearances quickly. It also simplified procedures for getting industrial clearances. The state also has separate acts for development in sectors such as solar power, electronic hardware and food processing.

The state has a large coast line of nearly 974 kms, temple destinations, lush green forests and spicy cuisine which have led to increase in domestic tourism in the last few years. Andhra Pradesh is one of the largest producers of brackish water shrimps and freshwater prawns and contributes more than 20 per cent to the country’s total marine exports.

Key Sectors:

  • The presence of rich climatic and soil conditions make Andhra Pradesh a major agricultural belt. Few of the leading crops produced in the state include rice, chilly, oilseeds, cotton, pulses and gram.
  • Andhra Pradesh is home to many global and national pharma players and various companies have set up their manufacturing hubs in different cities of the state. As of July 2016, the state had a total of four Pharmaceutical SEZs.
  • The ITE&C (Information Technology, Electronics & Communication) department of the state has established a new IoT policy within the state with a view to attain a substantial market share in India’s IoT market by 2020.
  • Andhra Pradesh produces medium grade and superior long staple varieties of cotton. During 2016-17 (up to May 2016), 858 metric tonnes of raw silk was produced by the state.

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