AP VISION 2029

Industrial Growth


As the present Government term draws to a close, it is the right moment for a recap on what Government of Andhra Pradesh lead by Sri. Nara Chandra Babu Naidu has envisioned and achieved in manufacturing sector.

Andhra Pradesh is swiftly becoming one of the most lucrative choice for manufacturing industry in India. Good infrastructure, compliance to labour laws and meeting the desired environmental standards were some of the factors responsible for better performance of Andhra Pradesh. The Government wanted to see a manufacturing sector that continues to transition from traditional processes to knowledge-based manufacturing of higher value products.

The State had set an ambitious target of double digit growth rate which makes Manufacturing sector growth as one of the key levers. This goal is being met by two initiatives undertaken by GoAP.

Economic Cities As Engines of Manufacturing Growth: Building upon the archetypes that have already been successful in Singapore, Korea and China, Andhra Pradesh becomes the first state in India to digress from the traditional models of manufacturing that employ piecemeal approach of disjointed economic activities and integrated social infrastructure.

Andhra Pradesh has proposed creation of 10 economic cities that will operate on the principles of ‘Plug and play’, ‘Walk to work’ and ‘Facilitating Ecosystem approach’ that allows a provision of 9 out of 20 clearances at facility level, with only 11 clearances remaining to be taken at entrepreneur level.

MSME CLUSTERS: Since MSMEs sector is envisaged to play a dominant role in structurally transforming nearly 1.5 million people to manufacturing sector by the year 2029, GoAP intends to establish one MSME cluster each for 175 assembly constituencies in the State. These clusters are planned around generating employment in low skill –labour intensive manufacturing sectors

MSME cluster development approach will help the industrial units to tap on the interfaces created by the Government for enhancing the productivity and competitiveness of the manufacturing sector in the State of Andhra Pradesh

Tapping the potential from Industrial Corridors (VCIC & CBIC): A node based strategy is adopted for the corridor development which includes development of four nodes across the VCIC region- namely Vishakhapatnam node, Kakinada node, Gannavaram- Kankipadu node, and Srikalahasti- Yerpedu node. These four geographic nodes are expected to drive the growth of industries, supported by a network of multi-modal transport to demand centers, urban clusters, and international gateways.

Funded by the Asian Development Bank, VCIC Employment Potential is 5.8 to 11.8 Million with Expected MFG GVA/GSDP contribution to the tune of INR 645 to INR 1275 Billion over 20 years. Meanwhile CBIC that is funded by the JICA has an employment potential of 0.6 million

The state of Andhra Pradesh is already home to many manufacturing and service industries. Taking new impetus from Developing of industrial corridors, the government focus to ensure holistic development. The corridors would further assist in integrating, supervising and developing a conducive environment for the industrial development and will promote advance practices in manufacturing.