Unlocking Growth: New Andhra Pradesh Industrial Development Policy (4.0) 2024-29

The New Andhra Pradesh Industrial Development Policy (4.0) 2024-29 has set a bold vision to transform the state into one of the most investor-friendly destinations in India. With a strong focus on sustainability, innovation, and global competitiveness, this policy brings a robust set of incentives and support measures that are designed to attract investments, generate employment, and foster inclusive growth. Whether you’re an established enterprise or a new-age startup, Andhra Pradesh might just offer the best industrial policy in India in 2025.

Policy Overview

The policy applies to:

• New and existing enterprises establishing new units
• Enterprises expanding their existing facilities

To avail benefits, enterprises must secure a Consent for Operation (CFO) and start commercial production during the policy’s operative period.

Focus Sectors

To achieve rapid industrial growth, the state has identified the following high-potential sectors:

• Chemicals & Petrochemicals
• Food, Agro-Processing & Marine Products
• Textiles & Apparel
• Metals & Alloys
• Cement & Building Materials
• Electronics Manufacturing
• Renewable Energy & Electric Vehicles (EVs)
• Pharmaceuticals & Biotechnology
• Aerospace & Defence
• Logistics & Warehousing

Financial Incentives and Subsidies

The policy provides tiered incentives based on the investment size. Here’s a breakdown of what’s offered:

Sub-Large Projects

Investment Range: ₹50 Cr – ₹500 Cr
Incentive Highlights:

• Capital Subsidy: Up to 12% of FCI
• An additional 5% subsidy for Women/SC/ST/BC/specially-abled entrepreneurs from AP
• Disbursed over 5 years
• Power Subsidy: ₹1/unit for 2 years
• Local Procurement Subsidy: 1% of annual export turnover for 3 years
• 100% Net SGST reimbursement for 5 years

Large Projects

Investment Range: ₹501 Cr – ₹1,000 Cr
Incentive Highlights:

• Capital Subsidy: Up to 12% of FCI
• Top-Up on PLI scheme: 10% of GoI sanctioned amount, capped at 5% of the FCI
• 100% Net SGST Reimbursement for 5 years
• Incentives disbursed in 7 equal installments

Mega and Ultra Mega Projects

Investment Range: Above ₹1,000 Cr
Incentive Highlights:

• Tailor-made subsidies up to 15% of FCI
• Employment-linked incentives
• Special priority clearance under SIPB/SIPC
• Decarbonization subsidies for sustainable practices

Early Bird Scheme – A Golden Opportunity

One of the most attractive parts of the Andhra Pradesh Industrial Policy 4.0 is the Early Bird Scheme.

• Category I: The First 200 projects to secure a CFO within 18 months get a 30% investment subsidy
• Category II: PLI-aligned value-added manufacturing projects receive a 40% subsidy
• Applicable across Sub-Large, Large, Mega, and Ultra-Mega categories
• Must achieve DCP within the standard investment period

Why Does Andhra Pradesh Stand Out?

• Ranked as a top performer in Logistics and Ease of Doing Business
• Only state with three national industrial corridors
• Power surplus with a 40% renewable energy target by 2030
• 175+ MSME parks and 211 industrial parks are already operational
• Best-in-class digital single-window clearance through Single Desk Portal

Incentives at a Glance

Who Should Apply?

This policy is especially beneficial for:

• Export-oriented industries
• Green energy & EV manufacturers
• Agro-processing clusters
• Pharma and biotech units
• Logistics and port-based industries
• Women-led or socially inclusive businesses

Final Thoughts

The New Andhra Pradesh Industrial Development Policy (4.0) 2024-29 positions the state as a clear front-runner among the top investment policies in Indian states. With strong fiscal support, fast-track implementation, and a pro-business governance framework, this policy is not just an opportunity—it’s a strategic invitation.

If you’re looking for the perfect policy in India to expand or start your industrial journey, Andhra Pradesh offers one of the best industrial policies in India in 2025.