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

Andhra Pradesh (AP) is located in the Southern peninsula of India. The state of 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$ 124.73 billion in 2017-18. Between 2011-12 and 2017-18, the average annual GSDP growth rate was 13.33 per cent*.

The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 14.524 billion during the period April 2000 to December 2017, according to data released by Department of Industrial Policy and Promotion (DIPP).

As of December 2017, the state had 20 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 2018, Andhra Pradesh had a total installed power generation capacity of 23,051.51 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. Marine fish production in the state in 2017-18 (up to December 2017) stood at 4.28 million tonnes.

Recent Developments:

• Production of crude oil and natural gas in the state was recorded to 249 thousand metric tonnes and 677 mcm during April-December 2017, respectively.
• Oil major Indian Oil is planning to invest Rs 827 crore (US$ 128.32 million) in Andhra Pradesh. Out of the total investment, Rs 500 crore (US$ 77.58 million) will be used to set up a state-of-the-art oil terminal in Nalgonda.

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. Foodgrain production in the state reached 15.759 million tonnes in 2017-18.
• 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 December 2017, 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.

Note: *CAGR in Rs terms