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ANDHRA PRADESH ATTRACTED OVER RS 9.40 LAC CRORE OF NEW INVESTMENT PROJECTS FROM 2018-19 TO 2022-23, SAYS STUDY
Andhra Pradesh, from 2018-19 to 2022-23, has announced new investment projects, both government and private sector, worth of Rs.9,41,020 crores and the highest has been in 2022-23 of Rs.3,32,186 cr, according to the study jointly carried out by the MSME Export Promotion Council and the Confederation of Organic Food Producers & Marketing Agencies (COII).
Releasing the study today, the chairman of the MSME Export Promotion Council (former secretary general of ASSOCHAM) Dr. D S Rawat said, “As per the data made available by the Centre for Monitoring of Indian Economy (CMIE), during this period the investment projects completed in the state were of Rs.1,34,419 cr and pending projects worth Rs.27,110 cr were revived”.
He said, in 2022-23, while the total investment projects outstanding were worth Rs.17,90,533 cr, the projects under implementation were of Rs.7,51,980 crore. The study has underlined the need for setting up a high-powered monitoring committee to expedite the with-held projects. If implemented expeditiously, chairman Dr Rawat said, could generate over 2 lac direct and indirect jobs.
During the FY 2022-23, the new investment projects announced by the government were of Rs.23,293 cr and the private sector Rs.3,08,893 cr. The total investment projects outstanding in 2022-23 under the government’s projects were of Rs.10,65,526 cr and under implementation Rs.5,64,868 cr. Under the private sector, the total investment projects outstanding were of Rs.7,25,006 cr, and under implementation Rs.1,87,112 cr during the same FY.
The study observed that currently there are around 61,000 MSMEs in the state employing around 5.80 lac people. However, there is huge potential for the growth of MSMEs particularly in the agriculture and crafts sectors in rural areas which will provide inclusive and sustainable development. The state’s policy on the “boot-up, start-up & scale-up” model focusing on the first-generation technology-based entrepreneurs contributing to employment generation, new products, services, and social transformation is expected to pay rich dividends in the medium term.
Dr Rawat said the entrepreneur innovation & start-up cells started in colleges in the state will encourage youths to start up their own enterprises. While the state is supporting the formation of incubators, there is a need to encourage more and more NGOs to get involved in this respect.
The study has also emphasized the need to tap the huge untapped potential in the IT & ITeS sector as there are only around 250 IT companies in AP employing just 35,000 people.
Despite the disruptions caused by the pandemic, AP emerged as one of the front ranking states in the country’s agribusiness industry with Rs.44,539 crore exports showing a notable growth rate of 5.95% in agricultural and food processing exports for the year 2021-22. It has established itself as a major player in India’s agribusiness industry, with a significant contribution in sectors such as aquaculture, horticulture, dairy, and poultry. The state government needs to shift more attention to the innovative schemes/technologies developing globally to enhance the farmers’ income.
Dr Rawat said in today’s highly competitive environment, the state governments are compelled to improve their law and order and administration to make the bureaucracy business-friendly, and reform rules and regulations on a continuous basis to make legal framework compatible with economic and technological changes.
He further said, that all the states are required to make their states an attractive destination for private investment by providing several incentives and concessions to increase investment, raise tax collection, improve further the existing infrastructure, and create employment opportunities.
The MSME EPC informed that it has created a “Specialized Cell” to create awareness about the policies and facilities provided by the state government and the emerging potential for investment in various sectors.