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What are the challenges faced by the industrial sector of Andhra Pradesh? Throw light on the strategies created to face these challenges.
At the time of bifurcation in 2014, the State started on a weak foundation, with many challenges that had to be addressed to meaningfully drive economic growth and create employment opportunities.
The challenges faced by the industrial sector of Andhra Pradesh are
- Manufacturing sector growth in AP was below national average for 10 years
- Loss of the well-developed IT/ITeS sector in Hyderabad, which was contributing around 48.19% of State revenues, and was a large employment generator.
- Lack of a skill development ecosystem to identify and nurture skills towards job creation
- Huge revenue deficit, which became a roadblock for implementation of IT and industrial infrastructure projects.
- There was a large industrial incentive backlog of Rs 2,060 crores, which was pending from 2010-11
The strategies created to face these challenges
- With target to attract Rs. 2 lakh crores in manufacturing investments and create employment for 10 lakh people by 2020 in the manufacturing sector across key focus sectors, the State Government released following policies viz. AP Industrial Development Policy 2015-20, AP MSME Policy 2015-20, AP MSME Parks Policy 2015-20.
- With an intent to promote innovation in IT and Electronics sectors, and create 1 lakh jobs in the IT sector, and 2 lakh jobs in the Electronics sector, the Government released following policies viz. Consolidated AP IT Policy 2018-2020, AP Electronics Policy 2014-2020, AP Innovation and Startup Policy 2014-2020.
- Taken measures for Ease of Doing Business with AP Single Desk Policy 2015-20.
- Industrial Developmental Policy 2020-23 – The state government’s Industrial Development Policy 2020-23, focuses on providing best-in-class infrastructure, zero-hassle set-up, skilled labour and end-to-end hand-holding support for units to provide an industry-friendly environment on a par with international standards. Emphasis is also being laid on reducing the risk and cost of doing business.
Analysis
The question has two parts. First one is challenges and second one is about strategies. So providing about 3 to 5 challenges and 3 to 5 strategies are sufficient.
| Question Paper | APPSC Group-I 2020 Mains Paper IV: Economy and Development |
| Question No | 20 >> 10 (b) |
| Difficulty Level | Medium |
| Depth Level | Fundamentals |
| Subject/Topic | Economy and Development >> AP Economy >> Growth and Development >> Secondary Sector |
