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Understanding AP’s Industrial Policy 2015-20

AP’s Industrial Policy 2015-20


The newly created Andhra Pradesh has become one of the best destinations in attracting FDIs, and the new government which is in a dire need of investments, presented an inclusive and business friendly industrial policy (IP) 2015-20. Since the Indian economic liberalization in 1990s, the major manufacturing plants were settled in the south of India. The major industries include Cement, Paper, Food Processing and Aquaculture, Steel, Fertilizers, Chemicals and Petrochemicals, Textiles, Automobile and Ship Building. The two proposed economic corridors – Visakhapatnam-Chennai Industrial Corridor and Chennai Bengaluru Industrial Corridor, also makes it a lucrative destination for industries.

IP has included various categories to better represent the entrepreneur spirit from every section of society. Under this new policy the fiscal benefits have been extended to economically benighted class, and also a special provision for women entrepreneurs.

The government through this policy has also made an attempt to attract big manufacturing companies in order to make this coastal region a manufacturing hub.  The central government’s ‘Make in India’ campaign reflects in the AP’s industrial policy, and already some of the biggest companies have opted this state for manufacturing. For example, Xiaomi opened a local manufacturing unit in Jul, 2015. Similarly, Singapore and Japan have shown a keen interest in developing smart cities in this region.


To make Andhra Pradesh an industrialized and progressive state.


  • To ensure sustainable and inclusive industrial growth
  • To become the 3rd largest states] in terms of industrial investments.
  • To create significant opportunity for employments.
  • To become the logistics hub and India’s gateway for South-East Asia.


  • To increase the contribution of manufacturing to Gross State Domestic Product (GSDP) from 9.95% to 15% by 2020.
  • To increase the contribution of industries to GSDP from 20.7% (2013-14)to 25% by 2020
  • Attract investment to the tune of 2 lakh crore by the end of 2020
  • Create employment opportunities for an additional 10 lakh people by the end of 2020

The IP 2015-20 has categorized 6 different groups/sectors to provide fiscal benefits under this scheme. The categorized sections are:

  1. Micro, Small & Medium Enterprises
  2. Large Industries
  3. Scheduled Caste & Scheduled Tribe Entrepreneurs
  4. Backward Class Entrepreneurs
  5. Women Entrepreneurs
  6. Mega Projects

The Indian Iris goes in depth of this policy in subsequent analysis…keep watching this space for more..

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  1. Please deatails of industrial policy I can set up small scale industry please guide

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