AP Industrial Development Policy
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November 18, 2024
Introduction
Andhra Pradesh’s strategic location and long coastline have fostered a strong trade ecosystem, with major ports connecting India’s interior to global markets.
Andhra Pradesh used digitization and key reforms to streamline industrial approvals, achieving the top spot in India’s “Ease of Doing Business” rankings by the Department for Promotion of Industry and Internal Trade.
Need for a New Industrial Policy 2024-29
For nearly 30 years, companies have invested heavily in Asia for its low costs and large consumer market, but this has led to a risky overconcentration in a few countries. To counter rising costs, supply chain risks, and geopolitical uncertainties, companies are now seeking diverse production hubs, with India emerging as a prime option due to its economic reforms, skilled workforce, competitive costs, and strong international ties. While India’s advantages make it an appealing alternative, continued reforms are essential to fully leverage its potential in global supply chains.
Through its renewed industrial policy, the state of Andhra Pradesh aims to continue such a reform-based agenda
Policy Period and Applicability
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Policy period |
5 years from the date of the policy notification (i.e 26-10-2024) or till the
new policy is announced. |
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Applicability |
a) New and existing enterprises investing and establishing new units. b) Existing enterprises investing in the expansion of units. |
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Approvals |
Needs to obtain Consent of Operation and commence commercial
production during the operative period of the Policy, unless otherwise
exempted through a G.O., to be eligible to claim incentives under this policy |
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Investment Cut-off date
for eligibility of
Incentives under new
policy |
This policy will replace IDP 2023-27 upon notification, but enterprises
currently benefiting from IDP 2023-27 may continue to receive those
benefits till the end of its operative period. |
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Focused Sectors:
The Andhra Pradesh Industrial Development Policy (4.0) 2024-29 identifies “sustenance” and “propelling” sectors as the target areas for growth:
1.Sustenance Sectors:
These are sectors with a well-established presence in the state, contributing substantially to its GSDP and employment. They include:
1 Chemicals and Petrochemicals
2 Food, Agro, and Marine Products
3 Textiles and Apparel
4 Metals and Alloys
5 Cement and Building Materials
2. Propelling Sectors:
1.These sectors are rapidly expanding, offering the potential to integrate Andhra Pradesh further into global supply chains. These sectors include:
1 Electronic Manufacturing
2 Renewable Energy and Electric Vehicles
3 Pharmaceuticals and Biotechnology
4 Aerospace and Defense
5 Logistics and Warehousing
By focusing on these targeted sectors, the policy aims to leverage Andhra Pradesh’s strengths and position it as a hub for industrial growth and sustainable development
Download To Know More About Projects and respective incentives
Policy Implementation Summary:
1. State Investment Promotion Board (SIPB): Chaired by the Chief Minister, SIPB meets monthly to expedite decisions on industrial projects and approve mega projects.
2. State Investment Promotion Committee (SIPC): Chaired by the Chief Secretary, SIPC, which includes key secretaries and officials, meets monthly to monitor investment policies, large projects, and proposals for mega projects. SIPC also advises SIPB on amendments and incentives, though final approval remains with SIPB.
3. Operating Guidelines: Detailed guidelines on definitions and procedures for incentives will be issued separately.
Where can SBC help:
Our Incentives & Refunds team will assist you in
- Analyzing eligibility for Incentives and refunds
- Documentation review
- Application for Incentives and reimbursements
- Documentation review
- Resolving issues with authorities
CONTACT US
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AP Industrial Development Policy
