Andhra Pradesh CM Chandrababu Naidu Unveils Six "Game-Changing" Policies to Boost Jobs, Investments, and Innovation

On Wednesday, Andhra Pradesh Chief Minister N Chandrababu Naidu announced six transformative policies across various sectors, including industries, MSMEs, and food processing, with the ambitious goal of creating 20 lakh jobs and attracting ₹30 lakh crore in investments over the next five years.

During a press conference at the Secretariat, Naidu emphasized that these policies are poised to be "game changers" for the state's economy. He expressed optimism about securing $10 billion in foreign direct investments (FDI) and doubling the state's exports from $20 billion in 2024 to $40 billion in the near future.

According to Naidu, the Gross Value Addition (GVA) from the manufacturing sector, currently at ₹3.4 lakh crore, is projected to more than double to ₹7.3 lakh crore by 2029, generating an additional five lakh jobs.

The newly introduced policies—AP Industrial Development Policy 4.0, AP MSME & Entrepreneurship Development Policy 4.0, AP Food Processing Policy 4.0, AP Electronics Policy 4.0, AP Industrial Park Policy 4.0, and AP Integrated Clean Energy Policy 4.0—are designed to drive investment, foster local entrepreneurship, and promote sustainability.

"These six policies were developed with extensive thought and consultations. We promised to create 20 lakh jobs, and these policies will help us deliver on that promise," Naidu said.

Focus on Fast-Tracking Business Growth

Naidu highlighted the state's competitive incentive structure, a key feature of these policies. This structure is designed to encourage home-grown global brands, product perfection, decarbonization at scale, and what he coined as the "speed of doing business." This new concept aims to improve efficiency and streamline business processes, enhancing Andhra Pradesh's attractiveness to investors.

"Previously, we led in the ease of doing business rankings for four years. We are focusing on how quickly we can enable businesses to start and grow," Naidu said, stressing the establishment of a single-window system to clear proposals and eliminate bureaucratic delays.

Other notable features include a dedicated investment facilitation cell, foreign investor assistance, an integrated data management system, and the re-engineering of regulatory procedures.

Policies Driving Key Sectors

To achieve this ambitious vision, Naidu outlined 10 core sustenance sectors, including automobiles, engineering, pharma, metals, and furniture, while identifying emerging sectors like aerospace, semiconductors, biotechnology, and electric vehicles as focus areas that require an enabling ecosystem.

Under the AP Industrial Development Policy 4.0, the state will offer lucrative incentives—up to 72% for value-added investors and 62% for early investors. Similarly, under the AP MSME & Entrepreneurship Development Policy 4.0, the "One Family, One Entrepreneur" strategy will focus on facilitating MSME growth through an eight-point plan covering incubation, competitiveness, and financial support, with incentives reaching up to 75%.

The AP Food Processing Policy 4.0 aims to attract ₹30,000 crore in investments, create three lakh jobs, and support 30,000 new entrepreneurs. Meanwhile, the AP Electronics Policy 4.0 is focused on generating five lakh jobs through investments of ₹84,000 crore in sub-sectors like IoT, 5G communications, and electronics manufacturing.

Private park developers will receive substantial subsidies for industrial park development, and each of Andhra Pradesh's 175 assembly constituencies will have at least one industrial park focused on sectors like electric vehicles, defence, and toys.

Paving the Way for a Clean Energy Hub

The AP Integrated Clean Energy Policy 4.0 aims to make Andhra Pradesh a clean energy hub. Plans include investing ₹10 lakh crore and creating 7.5 lakh jobs. Key initiatives include achieving 78.5 GWp of solar energy capacity, 35 GW of wind energy, and 5,000 EV charging points.

Empowering Youth and Innovation

Naidu also announced plans to create the Ratan Tata Innovation Hub, which will have its main centre in Amaravati and regional hubs in Vizag, Rajahmundry, Vijayawada or Guntur, Tirupati, and Anantapur. These hubs will focus on technology and skill development in emerging sectors, offering mentorship and incubation support, and helping young entrepreneurs build globally competitive brands.

"Our goal is to inspire the youth of Andhra Pradesh to think globally and act globally. Every family should produce an entrepreneur," Naidu said.

With these six policies, Naidu is confident that Andhra Pradesh will emerge as a leader in innovation and economic growth, ensuring a brighter future for the state's youth and business ecosystem.