Andhra Pradesh Industrial Policy 2020-23

Andhra Pradesh government has announced a new “Industrial Development Policy 2020-23” focusing on sustainable development with the accent on MSMEs and women entrepreneurs and wide-based development of the State. The government has identified industrial zoning as a key focus area to ensure planned industrial development and provide a risk-free, investment-friendly environment for setting up and operating industries in the state with minimal impact on the environment.

The policy was launched by Minister for Industries Mekapati Gowtham Reddy in Vijayawada in the virtual presence of a hundred representatives from various industrial and academic communities. The 'YSR AP One' has announced a new multi-faceted capability center set up in the state. The new centre will offer ten vital services including entrepreneurship facilitation, sales support, and MSME revitalization.

"The manufacturing sector, as an employment provider, remains a high priority for the state. The government will undertake structural reforms to accelerate industrialization in the state. We believe that providing the right facilities at the right cost and offering transparent approvals is critical to the success of the industrial sector," Goutham Reddy noted. The thrust areas identified by the government under the new industrial policy include food processing, pharmaceuticals and biotechnology, textiles, electronics, footwear, and leather, toys and furniture, petrochemicals components, machinery, precision equipment and mineral-based industries.

Features of the policy:

• The new industrial policy for 2020-23 proposes interventions across infrastructure, ease of doing business, skill development, business enablement, and fiscal incentives
• Notable interventions include complete zoning and pre-clearance of industrial land in the state, setting up of MSME parks with plug and play facilities
• To further enhance the ease of doing business, the government proposes to provide deemed approval with a grace period of 3 years for all green category MSMEs
• 30 skill centers and 2 skilling universities shall be established in the state
• Fiscal incentives proposed for MSME's include 100% reimbursement of stamp duty, net SGST, power subsidy of Re 1/unit, 15% investment subsidy, and interest subsidy up to 3%
• For medium, large and mega industries, net SGST reimbursement linked to employment generation has been proposed
• The policy also lays down additional incentives for units owned by special category and women entrepreneurs

With the current pandemic and millions of lost jobs, YSR AP One surely seems like a silver lining if implemented correctly. Andhra Pradesh has previously seen the power of industries and the IT sector with Hyderabad. But, after the state bifurcation and Hyderabad coming under Telangana, AP seems to re-establish the industry culture back in the state and eliminate youth unemployment. More states like Madhya Pradesh, Rajasthan, Bihar, Jharkhand should learn and adopt these modern changes as the industry-based economy is the key to move up in developing nations ladder instead of the agriculture-based economy.