Web Exclusive | August 2019
Andhra gets $2.9 billion FDI
Andhra Pradesh is among the top foreign direct investment (FDI) destinations in India, with an inflow of $2.9 billion of foreign investment in 2018. This investment – along with supportive government policies and a business friendly environment – has the state industrialise quickly. The industries that have most benefitted are biotechnology, information technology (IT), textiles and leather, automotive and auto components and agriculture, among others.
The state’s Industrial Development Policy, 2015-20 offers a host of incentives to new industrial units in these sectors, apart from offering land and measures to make doing business easier. Entrepreneurs and companies looking to set up or invest in Andhra Pradesh should review these incentives to see if they are eligible as part of their market entry planning. It is advisable to compare these schemes available in other Indian states before scheduling site visits and meetings.
Andhra Pradesh is a leading textile processing centre. The State’s labour force has a strong skill base in weaving and textile related skills. It is also a major producer of hides and skins in the country, which accounts for 10 per cent of the country’s raw material.
Last year, the State Government approved a new Textile, Apparel, and Garments Policy, 2018 -23 to increase investment in the sector. The policy offers capital subsidy on the eligible fixed capital investment (FCI) with a maximum prescribed limit for weaving units, knitting units, processing units, technical textiles, standalone garmenting, and apparel units, among others. It provides an additional subsidy of 50 per cent of FCI for environment-friendly units – or businesses that set up effluent treatment plants.
Other benefits available for textile units include skill support in the form of a one-time grant for training employees, power cost reimbursement, and incentives for hiring local workers.