VIJAYAWADA: The TDP-led NDA government has unveiled an ambitious roadmap to transform Andhra Pradesh into India’s major hub for information technology and electronics.
Spearheaded by HRD, IT and Electronics Minister Nara Lokesh, the government’s push for large scale investments and rapid industrial development has started yielding results. To support its Swarna Andhra vision, the government has launched a slew of policies for 2024-29. These include the IT & Global Capability Centre Policy, Electronics Manufacturing Policy, Semiconductor & Display Fab Policy, Data Centre Policy, and Innovation & Startup Policy.
Collectively, these policies aim to build a robust digital and electronics ecosystem by offering capital subsidies, rental and power incentives, support for co-working spaces, job creation subsidies, and employee welfare schemes. For IT companies, the government is offering hiring subsidy of up to Rs 3 lakh per employee, with additional benefits for women and disadvantaged groups.
Employees may also receive direct housing and education allowances. Electronics projects are eligible for capital subsidy ranging from 20% to 30%, with customised packages for large scale investments.
Since June 2024, Andhra Pradesh has seen a surge in industrial activity, with several leading national and international companies getting land allotment for major projects. These include Tata Consultancy Services, Cognizant Technology Solutions, LG Electronics, Daikin Air Conditioning India, Premier Energies, and Wingtech Mobile Communications.
Sattva, ANSR in expansion mode
Collectively, these projects account for an investment of over Rs 22,188 crore, and are expected to generate more than 47,000 jobs across the State.
In addition, Sattva Group and ANSR have announced significant expansion plans, pledging Rs 1,500 crore investments, besides creating 35,000 jobs.
It may be noted that AP’s recent exports performance highlights its growing prominence in the technology and electronics sectors. IT exports from Software Technology Parks of India (STPI) registered units rose significantly. Electronics exports reached nearly Rs 80,000 crore, with the State producing approximately 3.5 million mobile phones per month, and 3 million televisions annually.
Building on this momentum, the State government is now focused on promoting semiconductor fabrication units, large scale solar manufacturing industries, and AI-enabled data centres.
During 2014-19, Andhra Pradesh laid the foundation for technology hubs in Tirupati and Visakhapatnam, attracting global companies. However, many of these projects slowed after 2019. With renewed focus and policy support post-2024, the government is now reviving and scaling these efforts, aiming to create five lakh jobs in IT and electronics over the coming years.
Emphasising the government’s commitment to industrial reforms, the IT Minister said, “The focus has shifted from ‘Ease of Doing Business’ to ‘Speed of Doing Business’. Andhra Pradesh is rapidly emerging as a competitive destination for IT and electronics with the potential to rival India’s leading technology hubs in the coming decade.”