Natural resources, policy incentives and infrastructure in the state are favourably suited for investments in major sectors such as drugs and pharmaceuticals, biotechnology, IT and ITeS, mines and minerals, textiles, leather and tourism.
Andhra Pradesh (AP) is one of the foremost states to have developed sector-specific policies. Forming industrial clusters and developing infrastructure, such as biotech parks, textile parks and hardware parks, has been the state's key strategy to attract investments in various industries.
The following are some of the major initiatives taken by the government to promote AP as an investment destination:
- The state is planning to add another 8,400 MW power capacity under the public sector which includes a 600 MW plant at RTPP, Muddanur, 4,000 MW near Vodarevu in Prakasam district, 2,400 MW plant in Srikakulam and a 2,000 MW nuclear power project.
- The state provides ample opportunities for pharma companies due to availability of ports, pharma city, international airport, large parcels of land for expansion and good effluent treatment facilities.
- The central government is planning to develop Tirupati or Chittoor as agro-based and food-processing hubs and Visakhapatnam as the fisheries and sea-food hub.
- The government provides financial assistance in the form of investment grants to the extent of 30.0 per cent of cost of plant and machinery for small scale industries (SSI) and 20.0 per cent of cost of plant and machinery for other units, subject to a ceiling of US$ 120,000 for technology upgradation or/and expansion.