Andhra Pradesh Economy

the state prior to 1995. However,

AP Economy and subsequently from 2003-04 to 2013-14
the state could not consolidate the
its main features gains made earlier and in fact lost
momentum despite the golden
Andhra Pradesh was predominantly an
opportunity presented by a vibrant
agrarian economy till the early 90s.
economy and buoyant revenues. As a
Over a period of time, the State moved
result the industry sector in the state
gradually to become a service oriented
decelerated and its share fell from
economy with small incremental
24.11% to 23.61%.
growth in the industry sector. About 15
years ago, the Vision- 2020 document The year 1991 was a significant year
envisioned Industry as an important in modern India‘s economic history as
engine to propel growth and provide it ushered in economic reforms.
employment. The State achieved Similarly the year 1995 was the
significant improvement in the service beginning of a new era for
sector during the late nineties and the transforming Andhra Pradesh into a
early years of the current century. modern economy. The state focussed
on key growth engines identified by
The manufacturing sector is crucial for
reputed experts with global knowledge
employment generation and for
and understanding. These growth
development of any nation.
engines included industry,
Historically, the development process
infrastructure, horticulture, tourism, IT,
witnessed a trend of people shifting
services to name a few. A dynamic
from farm to non–farm sector such as
ecosystem that has certain key
manufacturing or services.
features like good policy which is
Since independence agriculture transparent, good governance
contribution has continued to decline systems, supportive technological
both at the state and national level. institutions and above all a committed
During the period 1993-94 to 2003-04 and visionary leadership were crucial
industrial contribution rose marginally ingredients in this process. As a result,
at national level by 0.87% while it rose the State was able to make rapid
more substantially in AP by 1.74 % strides in various sectors despite
despite the lack of industrial culture in

PSCNOTES.COM Page 1
 Andhra Pradesh Economy

certain adversities like a series of

droughts during this period.

Background: Andhra Pradesh

Economy:

Average growth in Andhra Pradesh‘s

economy at constant prices (adjusting
for inflation) witnessed a decline from Services sector is the largest

6.6% in 2005-10 to 4.9% in 2010-15. component of the state‘s economy,

constituting 56% of the GSDP,
Figure 1 shows the growth rate of
followed by agriculture and
individual sectors in the period
manufacturing constituting 24% and
between 2005-10 and 2010-15.
20% of the economy respectively. The
Over 2005-15, growth rate in all three agriculture sector employs 55% of the
sectors of the economy, i.e. state‘s population, followed by the
agriculture, manufacturing and services (35%) and manufacturing
services saw a decline. (10%) sectors

 The growth in the Agriculture:

manufacturing sector has

Agriculture is the most important
slowed down from 8.9% to
sector of Andhra Pradesh's economy.
3.5%.
About 55 per cent of the population
 The growth in the services works in agriculture, and the state is
sector has also slowed down, one of India's main rice-producing
from 9% to 7.2%. areas. Other important crops are
 Agriculture growth rate declined sugarcane, oilseeds, beans, and
marginally from 6.3% in 2005- pulses (edible seeds from crops such
10 to 6.1% in 2010-15. as peas, lentils, d beans). Since Indian
independence in 1947, the state
government has worked to extend
irrigation from the coast to the drier
interior by building canals and dams.

PSCNOTES.COM Page 2
 Andhra Pradesh Economy

The Godavari and Krishna rivers today tons) and sixth in aquaculture
irrigate 6 million hectares (14.8 million production (1.57 million tonnes).
acres) of farmland. The Nagarjuna Andhra Pradesh is contributing 1.19%
Sagar project on the Krishna River, of global and 20.77% of national fish
completed in 1960, is one of the production (2014-15), according to the
largest irrigation projects. It has 800 Socio Economic Survey 2016-17.
km (497 sq. mi) of canals feeding an
It is going to establish and manage
irrigated system that produces rice and
fishing harbours and fish landing
other crops for industries processing
centres at all feasible coastal villages
agricultural products. Forested areas,
under the PPP (Private-Public-
which cover about 23 percent of
Partnership) mode.
Andhra Pradesh, yield timber products
such as teak, eucalyptus, cashew, A policy framework for allotment for
casuarina, softwoods, and bamboo. marine areas and large reservoirs for
cage culture through fishermen
Aquaculture:
cooperatives or private participation
The State government has prepared would be developed soon.
plans to make Andhra Pradesh a world
Industry:
‗aqua hub‘ by increasing fish
production from 25 lakh tonnes Andhra Pradesh is also one of India's
(February 2017) to 42 lakh tonnes with most industrialized states. The
a GVA (Gross Value Added) of Rs. industries, built up largely since 1947,
80,000 crore by 2019-20. include steel, shipbuilding, machine
tool manufacturing, pharmaceuticals,
The Planning Department has given
heavy electrical machinery, fertilizers,
an important place to fisheries in the
cement, chemicals, sugar refining, and
socio-economic scenario of the
jute processing. Andhra Pradesh also
Sunrise State. Fisheries have been
has important mineral deposits,
identified as a growth engine. AP
including coal, natural gas, asbestos,
ranks first in total fish and shrimp
barites, copper, mica, and iron ore.
production and contributes more than
The state is also the site of the
70% of cultured shrimp produced in
Golconda mines, where the famous
the country. The State ranks third in
Koh-i-noor diamond (now one of the
global shrimp production (0.3 million
British crown jewels) was found.

PSCNOTES.COM Page 3
 Andhra Pradesh Economy

Tourism is of growing importance to Machilipatnam, tourism resorts in

the economy. Andhra Pradesh has an Araku, Talakona, Horsely hills,
extensive road and rail network, a development of Belum Caves, and
major port in Vishakhapatnam, minor several other projects were completed.
ports in several other cities, and The State was able to develop several
airports at Hyderabad, Tirupacthi, religious destinations, conduct several
Vijayawada, and Vishakhapatnam. cultural festivals besides improving
infrastructure through the Tourism
Tourism Sector:
Development Corporation. The key to
Tourism is one of the growth engines tourism success in Andhra Pradesh
for economic development of a nation. was its sustained marketing efforts and
Andhra Pradesh with its rich natural creation of new tourism products.
and historic heritage always had the
IT & ITES INDUSTRY:
potential to be an important tourist
destination. Till 1994, the State never The Vision 2020 Document of the
accorded priority to Tourism. VISION Government prepared in 2000
2020 document envisaged Tourism as identified IT sector as a prime growth
a Growth Engine with great potential engine to leap-frog socio-economic
for creating employment for the youth development of the State. It was
and generating revenue for the State. envisaged that ―Andhra Pradesh will
While an investment of Rs 10 lakhs leverage information technology to
creates 18 jobs in manufacturing attain a position of leadership and
sector, 45 jobs in agriculture sector excellence in the information age and
whereas the tourism and Hospitality to transform itself into a knowledge
sector creates 78 jobs. Hence the society. The State will have a well-
Government, very rightly gave endowed information technology
emphasis to tourism with a view to industry spanning the areas of
harness its multiplier effect on hardware, software and human
employment, economic growth and resources‖
poverty alleviation in an
In the mid-1990s, when the IT boom
environmentally sustainable manner.
was just starting, the state capital
Several important tourism projects like which had a laid back approach was
Beach Resorts in Visakhapatnam and slowly transformed and the creation of

PSCNOTES.COM Page 4
 Andhra Pradesh Economy
cyberabad made it one of India‘s
premiere information technology and
IT-enabled service hubs. The state
capital region acquired a reputation as
the Silicon Valley of India as a large
number of IT firms had set up their
operations there. Starting in the 1990s,
during this phase, many of the IT
MNCs Like Microsoft, Oracle, Dell,
Deloitte, HSBC, Computer Associates,
Covergy's, Bank of America, CSC,
TCS, Infosys, Infotech Enterprises,
Satyam, Verizon have initiated their
operations in Hyderabad.
Leather Sector:
Andhra Pradesh generates huge
quantities of raw material resource
which can promote leather sector. AP
provides 10% of India‘s raw material.
However, it could tan only 5% of the
raw materials due to lack of tanning
facilities. The balance 95% of raw
material is being transported to other
States for value addition. Realising this
situation, the government in 2001 had
lunched ‗Malupu‖ program for
promotion of leather sector in the
state. Under this scheme, 94 leather
parks consisting of 72 Mini, 16 Medium
and 6 mega leather parks were
proposed covering all the districts. In
Phase-I, buildings were constructed for
the parks with an amount of Rs. 2.81
PSCNOTES.COM
crores and footwear machinery was
provided to 10 Mini Leather Parks. The
objective of the Action Plan was to the
train leather artisans who were mainly
from the Scheduled. Castes
community to form into Self Help
Groups (SHGs) and run the parks.
However the Government in
subsequent years neglected the
leather sector. Even the International
Leather Park at Krishnapatnam has
not made any progress since 2006.
The fund serve said that the monetary
allowance was readied keeping in
perspective of the proposed Goods
and Services Tax (GST). The
financial plan, rather than design and
non-design parts, will have income
use and capital use.
Here are the Budget 2017-18
features:
- Total Budget: Rs 1.56 lakh crore
- Revenue consumption: Rs 1.25 lakh
crore
- Capital consumption: Rs 31,087
crore
Page 5
 Andhra Pradesh Economy
- Allocation for financial
administrations is Rs 56,575.53 crore
including farming and united
administrations (Rs 9,090 crore),
country improvement (Rs 19,565
crore), water system (Rs 12,770
crore) and vitality (Rs 4,275 crore)
- Allocation for social administrations
is Rs 51,268.91 crore including
general training (Rs 20,384 crore),
welfare (Rs 11,361 crore) and
medicinal (Rs 7,020 crore)
- Rs 49,154.96 crore have been
allotted for general administrations
- Rs 450 crore for Visakhapatnam,
Tirupati and Kakinada for
advancement as Smart Cities
- Rs 150 crore for 13 urban
communities announced as shrewd
urban areas by AP government
- Rs 200 crore for Anna Canteens
- Rs 500 crore for joblessness pay
- Rs 1,061 crore for Capital Region
Development Authority
PSCNOTES.COM
- Rs 100 crore for fast roundabout
sub-urban prepare venture between
Vijayawada-Amaravati-Guntur-Tenali
- Rs 1,600 crore towards capital
implantation for the improvement of
ladies and youngsters in country
territories
- Establishment of maturity homes
with a limit of 100 in each at
Visakhapatnam, Guntur and
Anantapur
- Establishment of Ghantasala
Musuem in Vijayawada, Bapu
Museum, Kakinada Andhra Sahitya
Parishad and Amaravati Heritage
Center
- Establishment of eight uber
nourishment handling parks with open
private parternship in Srikakulam,
Vizianagaram, Visakhapatnam, East
Godavari, Chittoor, Kurnool and
Anantapur
- Development of Hope Island in
Kakinada, Konaseema and Nellore
drift as visitor spots
- Establishment of AP Industrial
Development Corridor
Page 6
 Andhra Pradesh Economy
- MSME Development Authority to be
set up to advance MSME part.
Distribution of Rs 125 crore for
resuscitating the inadequately
performing MSMEs
- Rs 97.69 crore for setting up
Ambedkar Smriti Vanam in Amaravati
denoting the 125th birth
commemoration festivities of BR
Amedkar this year.
The Finance Minister of Andhra
Pradesh, Mr. Yanamala
Ramakrishnudu, exhibited the Budget
for Andhra Pradesh for monetary year
2017-18 on March 15, 2017.
Spending Highlights
-18 is
assessed to be Rs 1,56,999 crore, a
18.3% expansion over the changed
gauge of 2016-17. In 2016-17, there
was a reduction of Rs 2,925 crore
(2.2%) in the changed gauge over the
spending gauge.
for 2017-18 are evaluated to be Rs
1,26,968 crore, an expansion of
17.9% over the modified
assessments of 2016-17. In 2016-17,
add up to receipts missed the mark
concerning the planned focus by Rs
2,859 crore.
PSCNOTES.COM
following money related year is
focused at Rs 416 crore. Monetary
deficiency is focused at Rs 23,054
crore. Essential deficiency is focused
at Rs 8,272 crore.
(57%), Rural Development (27%),
and Health, Medical and Family
Welfare (22%) saw increments in
distributions for the year 2017-18.
Then again, designation to the
Department of Municipal
Administration and Urban
Development saw a 22% diminishing
in assignment in 2017-18.
Strategy Highlights
crore has been distributed for the
Agriculture Debt Redemption
Scheme. In 2016-17, Rs 3,512 crore
was distributed to this plan.
assigned to finance the arrangement
of power supply to poor people.
with a limit of 1,000 MW each are to
be finished by 2018-19. What's more,
a breeze vitality limit of 5,000 MW will
be accomplished by 2018-19.
Page 7
 Andhra Pradesh Economy
Pradesh Irrigation Livelihood
Improvement Project has been
proposed. It will cover the
modernization of 20 Major and
Medium Irrigation ventures, and the
rebuilding of 445 minor water system
tanks.
proposed to be embraced in 2017-18
under the Affordable Housing
Projects. Rs 1,457 crore has been
apportioned for lodging under the
Pradhan Mantri Awas Yojana (PMAY)
and NTR Rural Housing plans.
Spending Estimates for 2017-18
2017-18 is focused at Rs 1,56,999
crore. The modified gauge for the
aggregate consumption in 2016-17
was Rs 1,32,764 crore, which is Rs
2,925 crore lower than the planned
focus of 2016-17.
-18 is
proposed to be met through receipts
(other than borrowings) of Rs
1,26,968 crore and borrowings of Rs
30,020 crore. Add up to receipts for
2017-18 (other than borrowings) are
relied upon to be Rs 2,859 crore
lower than the updated assessments
of 2016-17.
PSCNOTES.COM
Shortages, Debts and FRBM Targets
for 2017-18
The Andhra Pradesh Fiscal
Responsibility and Budget
Management (FRBM) Act, 2005 gives
yearly focuses to dynamically lessen
the remarkable liabilities, income
shortage and monetary deficiency of
the state government.
Income shortfall: It is the abundance
of income use over income receipts.
An income shortage suggests that the
administration needs to acquire to
fund its costs which don't make
capital resources. The Budget
evaluates an income shortage of Rs
416 crore in 2017-18.
Financial deficiency: It is the
overabundance of aggregate
consumption over aggregate receipts.
This hole is filled by borrowings by
the administration, and prompts an
expansion in all out liabilities of the
legislature. In 2017-18, financial
deficiency is assessed to be Rs
23,054 crore.
Extraordinary Liabilities: It is the
aggregation of borrowings throughout
the years. In 2017-18, the remarkable
liabilities are normal at 28.1% of state
GDP.
Page 8
 Andhra Pradesh Economy

Note that the GSDP gauge for 2017- The state has all around created
18 has not been given in the financial social, physical and mechanical
plan. With a specific end goal to give
foundation and virtual network. It
appraisals of the income shortfall and
monetary deficiency as a % of GSDP, likewise has great power, airplane
we have figured the GSDPs from the terminal, IT and port framework. At
general population obligation as a %
current costs, Andhra Pradesh's gross
of GSDP, as gave in the Budget in a
nutshell archive. state local item (GSDP) was evaluated
at US$ 92.17 billion more than 2015-
Trade and Commerce in
16. Between 2004-05 and 2015-16,
Andhra Pradesh
the normal yearly GSDP development
The recent province of Andhra rate was 10.67 for each penny.
Pradesh has been bifurcated into two
The state has pulled in Foreign Direct
states, Telangana and residuary
Investment (FDI) value inflows worth
Andhra Pradesh (Seemandhra), by the
US$ 11.57 billion amid the period April
Andhra Pradesh Reorganization Act,
2000 to March 2016, as indicated by
2014 or the Telangana Act. The
information discharged by Department
demonstration comprised of the parts
of Industrial Policy and Promotion
of division of advantages and liabilities,
(DIPP).
the limits of the proposed new states
and status of the capital city The Government of Andhra Pradesh
Hyderabad after the partition of the has proposed a financial plan of US$
state. 20.72 billion for FY 2016-17.
Extraordinary accentuation has been
Pre-division, Andhra Pradesh was one
laid in the consumption spending plan
of the generally more quickly
on training (US$ 2.67 billion), water
developing states in the nation.
system (US$ 1.09 billion), wellbeing
Between 2004-05 and 2015-16, Gross
(US$ 932 million) and vitality part (US$
State Domestic Product (GSDP)
614.2 million). Under 2016-17 state
extended at a Compound Annual
spending plan, the Government of
Growth Rate (CAGR) of 10.67 for
Andhra Pradesh declared to contribute
every penny to US$ 92.2 billion though
US$ 486.44 million for the
the Net State Domestic Product
advancement of streets and structures
(NSDP) extended at a CAGR of 10.64
in the state.
for each penny to US$ 82.86 billion.

PSCNOTES.COM Page 9
 Andhra Pradesh Economy

Starting at July 2016, the state had 19 prompted increment in household

operational SEZs in
crosswise over enhanced areas which
incorporate materials and clothing,
nourishment handling, footwear and
cowhide items, multi-item, pharma, IT
SEZs and so forth.
the state tourism over the most recent couple of
years. Andhra Pradesh is one of the
biggest makers of saline water shrimps
and freshwater prawns and contributes
more than 20 for each penny to the
nation's aggregate marine fares.

Seemandhra, involving Rayalaseema

and seaside Andhra, has the majority
Key Sectors:
of the power undertakings of unified
Andhra Pradesh. Coal-based power The nearness of rich climatic and soil
plants are for the most part situated in conditions make Andhra Pradesh a
the state because of vicinity to the noteworthy rural belt. Maybe a couple
ports. As of April 2016, Andhra of the main harvests created in the
Pradesh had an aggregate introduced state incorporate rice, cold, oilseeds,
control age limit of about 15,311.17 cotton, heartbeats and gram.
MW.
Andhra Pradesh is home to numerous
It is the principal state in the nation to worldwide and national pharma
have sanctioned the Industrial Single players and different organizations
Window Clearance. The Act made it have set up their assembling center
necessary for new enterprises to enroll points in various urban communities of
with the single-window to get the state. Starting at July 2016, the
clearances rapidly. It likewise state had a sum of four
improved methods for getting modern Pharmaceutical SEZs.
clearances. The state additionally has
The ITE&C (Information Technology,
isolate represents improvement in
Electronics and Communication)
parts, for example, sun based power,
branch of the state has set up another
electronic equipment and sustenance
IoT strategy inside the state with a
handling.
view to accomplish a considerable
The state has an expansive drift line of piece of the overall industry in India's
about 974 kms, sanctuary goals, rich IoT advertise by 2020.
green woods and hot food which have

PSCNOTES.COM Page 10
 Andhra Pradesh Economy

Andhra Pradesh produces mid-range Seemandhra, involving Rayalaseema

review and unrivaled long staple and beach front Andhra, has the
assortments of cotton. Amid 2016-17 greater part of the power activities of
(up to May 2016), 858 metric huge unified Andhra Pradesh. Coal based
amounts of crude silk was delivered by power plants are for the most part
the state. situated in the state because of vicinity
to the ports. The Visakhapatnam port
Andhra Pradesh is one of the
positions among the main five of 13
significant benefactors of marine fares
noteworthy ports in the nation.
representing a 45 for every penny offer
of the aggregate marine fares and The accompanying are a portion of the
positions second in Pharmaceutical real activities taken by the legislature
fares contributing 30 for each penny to advance Andhra Pradesh as a
offer to the aggregate Pharmaceutical speculation goal:
fares of India. It contributes around
The state gives sufficient chances to
4.01 for each penny offer to the
pharma organizations because of
combined Foreign Direct Investment
accessibility of ports, pharma city,
(FDI) inflows of India.
worldwide airplane terminal, huge
Andhra Pradesh has been one of the packages of land for development and
principal states to have created area great emanating treatment offices.
particular strategies. Shaping modern
The Government has declared a
groups and creating foundation, for
designation of US$ 34.79 million for
example, biotech parks, material parks
the advancement of culture and
and equipment parks, has been the
tourism in the state.
state's key technique to pull in
interests in different businesses. For the calfskin business, the
administration gives money related
Regular assets, approach impetuses
help with the type of venture stipends
and framework in the state are
to the degree of 30.0 for each penny of
positively suited for interests in real
cost of plant and apparatus for little
divisions, for example, medications
scale enterprises (SSI) and 20.0 for
and pharmaceuticals, biotechnology,
every penny of cost of plant and
IT and ITeS, mines and minerals,
hardware for different units, subject to
materials, calfskin and tourism.

PSCNOTES.COM Page 11
 Andhra Pradesh Economy

a roof of US$ 120,000 for innovation  Authorize motivators to

upgradation or/and development. mechanical units that are
qualified
The Union Government has intended
 Make a straightforward,
to create metro rail ventures at three
suitable, bother free and
areas in the state, including
business-accommodating
Visakhapatnam, Guntur and
condition for quickened
Vijayawada.
development of the mechanical
The Department of Industries and segment in the State
Commerce is principally in charge of  Give advertising help to the
the advancement of enterprises when nearby mechanical units
all is said in done, and little scale  Restore debilitated little
businesses specifically. The mechanical units, etc
Department likewise plans and
executes different plans for
mechanical advancement in the State. projects and schemes of AP
Major Projects
The fundamental elements of the
Industries and Commerce Department Electronic Manufacturing Cluster
(EMC) Scheme supports creation of
are:
world-class infrastructure for attracting
investments in the Electronics
 Help and guide business Systems Design and Manufacturing
visionaries in setting up modern (ESDM) Sector. EMCs scheme
supports grant assistance for setting
units up of both Greenfield and Brownfield
 Empower business people to EMCs.

get diverse mechanical To promote investment in the

endorsements and clearances Information Technology (IT) /
Information Technology Enabled
from different Services (ITES)/ Electronic Hardware
divisions/organizations from a Manufacturing (EHM) units, the
Government of India had notified
solitary point policy on Information Technology
 Enlist little ventures/modest Investment Regions (ITIRs) in May
2008. ITIRs will be self contained
enterprises/little scale integrated township to accelerate
administration and business growth of IT/ITeS/EHM industry.
The State Government would play the
undertakings lead role in setting up of the ITIR.

PSCNOTES.COM Page 12
 Andhra Pradesh Economy
In its endeavour to support the
growth of IT/ ITeS, BPM and ESDM
industry, the GoAP has undertaken
several infrastructure projects to
enable companies to start
operations in the city. These
include: :
 CRDA, Vijayawada
 Infrastructure
 Ports Development
Infrastructure
 Power Plants
 Agriculture
 E-Governance
 IT and Electronics
 Education
 Water
 Women & Child Welfare
 Tourism
 Government of Andhra
Pradesh (GoAP) proposed to
develop NIMZs at Chittoor
and Prakasam Districts for
which In-principle approval
was already accorded by GoI
 Government of Andhra
Pradesh (GoAP) proposed to
develop PRIDEs at SPS
Nellore, Kurnool (within
proposed Kurnool Mega
Industrial Hub) and
Prakasam (within proposed
Donakonda Mega Industrial
Hub) Districts. APIIC
engaged IIDC Limited (An
IL&FS Group Company) for
preparation of Project
Report, Site Master Plan and
application documents.
 Signature Towers with 9 lakh
square feet of built up area in
hill 3 of Madhurwada IT SEZ
 IT Tower for promoting
domain specific innovation at
Siripuram developed jointly
by VUDA and Software
Technology Parks of India
(STPI)
PSCNOTES.COM
 Millennium Towers with 3
lakh square feet of built up
area in hill 3 of Madhurwada
IT SEZ
 Society for Applied
Microwave Electronics
Engineering & Research
(SAMEER) R&D complex at
Gambheeram by the
Government of India
 Electronic Manufacturing
Cluster planned in 128 acres
of land at Gurrampalem
 National Investment and
Manufacturing Zones (NIMZ),
Anantapuram
 Solar Park by NTPC in
Anantapuram
 Anantapuram is part of the
proposed Bengaluru Kurnool
Industrial corridor15 and
Chennai – Bengaluru
Industrial Corridor (CBIC)
 Upcoming Bharat Electronics
Ltd. Defense systems
integration complex in
Palasamudram spread over
914 acres
 Defence manufacturing
clusters planned in
Anantapur
 Plans to develop a life
Sciences Park and SEZ in
Hindupur
 1750 (approximate) acres of
land earmarked for a SEZ,
Industrial and Residential
township at Hindupur in
Seemandhra
 Vittal Innovation city(VIC) to
set up a dedicated
Aerospace and Defence park
 Electronic Manufacturing
Cluster at Renigunta (M) &
Yerpeedu (M), Chittoor Dist.
 Electronic Manufacturing
Cluster, Tirupati
Vikruthamala (V), Chittoor
Dist.
 Tirupati Smart City
Page 13
 Andhra Pradesh Economy
 Visakhapatnam Smart City
 Utilities – Electricity and
water supply
 Sanitation and solid waste
management
 Efficient public
transportation, metro and
urban mobility
 Affordable housing
MAJOR SCHEMES
BANGARUTALLI – Maa Inti
Mahalaxmi
Bangarutalli is meant to take care of
Girl child in every household from her
birth till she completes her graduation.
If she gives birth to a baby girl Rs
2500/- will be deposited into her
account. Rs 1000 will be given for the
first two years at the time of
immunization. Rs 1500/- will be given
every year to the family through
Aanganwadis till the baby attains the
age of 5 years from 3rd years onwards.
At the time of admission to school, Rs
2000 will be given every year for her
studies from the first to the fifth
standard, and Rs 2500/- from sixth to
eight standard, Rs 3000/- for ninth and
tenth standard. For intermediate she
will be given Rs 3500/- each year and
Rs 4000/- a year during her
graduation.
SADAREM -
Objective of SADAREM initiative is to
create a dynamic web enabled system
for Comprehensive access,
rehabilitation and empowerment
through automation, capacity building,
assessment of person with disabilities
(PWDs) and maintaining decision
support system (DSS).
PSCNOTES.COM
STREENIDHI CREDIT CO-
OPERATIVE FEDERATION LTD.
Streenidhi credit co-operative
federation ltd is promoted by the
government and the mandal
samakhyas to supplement credit flow
from banking sector and is a flsgship
program of the government. Streenidhi
provides timely and affordable credit to
poor SHG members as a part of
overall strategy to help for poverty
alleviation.
BHOOMI – Land Access to Poor
Possession of land is not just
economics. It is a symbol of dignity. It
is self-respect, it is politics, it is power.
So government of AP has been
working in two direction to fulfil land
needs of poor. One is land purchase
i.e. securing the poor access to land
through facilitating purchase of good
quality irrigated lands and the other is
land access- facilitating the poor in
convergence with the revenue deptt.
To have control over their lands in
terms of having secure titles.
Community Managed Sustainable
Agriculture
The primary mission is to improve the
annual incomes of farmers in rain fed
areas in particular and agriculture in
general with integrated farming
systems. The CMSA is for developing
new tools and equipment for reducing
drudgery to women farmers, for
establishing village level infrastructure
for supply of these tools, for upgrading
women farmer‘s knowledge in eco-
friendly farming technologies, for
organising capacity building
Page 14
 Andhra Pradesh Economy
programmes with new training content
and improved methods. For managing
revolving fund for decentralized
extension system leading to multiple
livelihood options for the communities
to be managed by them on their own.
KRuSHE
KRuSHE wing under SERP has been
incepted to promote entrepreneurship
in farm and non-farm livelihoods
among the members of rural SHG
households with focus on POP on
saturation basis and to engage each
household in an entrepreneurial
activity for drought proofing the rural
household.
For restoring the traditional arts and
crafts of AP, KRuSHE is an attempt to
link numerous artisans, craftsmen and
rural producers of the state to
remunerative markets. The objective
is that the artisans et the correct worth
for her produce and there is a
substantial increase in the income of
the artisan.
UNNATHI
The objective of UNNATHI is to enable
every poorest of poor family in the
state to come out of poverty with
increased and sustainable livelihood
opportunities
N T BHAROSA
As part of its welfare programmes, the
government of AP is implementing
various pension schemes for the most
needy and vulnerable population i.e.
the persons in old age, widows, people
with disabilities(PWDs), and weavers
to provide the succor.
PSCNOTES.COM
ABHAY HASTHAM
Government of AP introduced Velugu
pension and Insurance scheme for the
(Rural and Urban) SHG women to
provide income security in their old
age
Economic and tax Reforms in
Andhra Pradesh:-
On 16 May 2017 Andhra Pradesh
Legislature passed the state Goods
and Services Tax (GST) Bill and
contributed towards biggest
Economic and Tax reform.
Meanwhile State has a glorious
history of Economic and Tax
reforms.
First Phase of Economic Reforms
in Andhra Pradesh:--
The attention of economists and
policy makers has turned towards
reforms at
the state level in the late 1990s,
because it is being recognized that
the first phase of economic reforms
will not be complete without
reforms at the state level. The
programmes for development and
welfare cannot take off without
reforms at the state level, which are
the Constitutional repositories ofthe
responsibilities in these sectors. A
competition was witnessed among
the states, irrespective ofthe political
philosophy of the Governments in
power, for reforms at the state level
Page 15
 Andhra Pradesh Economy
as a means of attracting investments,
preferably foreign investments. The
state of Andhra Pradesh was in the
forefront ofthis competition; it was
the first state to have initiated the
World Bank to suggest measures of
reform, to have attracted the Bank‟s
advice and package of assistance for
such a programme and to have
initiated steps suggested by it.
World Bank Agenda for Economic
Reforms in Andhra Pradesh:--
Since the early 1980s AP has
developed a public expenditure
strategy based on large allocation to
numerous broad-based subsidy and
welfare programs. Among India‟s
states, AP has the highest proportion
of non-interest expenditure allocated
to such programs. This has diverted
scarce public resources away from
productive uses in economic and
social infrastructure, and has
consequently discouraged private
investment and curtailed growth. On
account of its poor growth
performance, AP has failed to
expand the revenue base needed to
finance its subsidy and welfare
programs. As a result, the
government has been caught in a
vicious circle and, has been
increasingly forced to divert funds
away from productive uses and
resort to high-cost borrowing to
meet its commitment to subsidies.
PSCNOTES.COM
Until 1991, the state was a
monopolistic supplier
ofinfrastructure services; the private
sector could not compensate for
inadequate public funding for
infrastructure. While this situation
changed since 1991 and the state has
sought to attract private investment
in infrastructure, the inappropriate
pricing policies and weaknesses in
the policy and regulatory framework
have remained important constraints.
In this context, the Government of
Andhra Pradesh has approached the
World Bank, India Country
Department, to assess the existing
economic situation and suggest a
suitable agenda for economic
reforms to implement them in
Andhra Pradesh. The World Bank
appointed a broad based committee
with multi-sector experts in 1996 to
assess the existing economic
situation ofAndhra Pradesh and
suggest a suitable agenda for
economic reforms at the state level.
This committee has surveyed the
existing economic situation in
different sectors ofAndhra Pradesh
economy and has prepared an
Agenda for Economic Reforms,
which was approved by the
Government of India as well as the
Government of Andhra Pradesh. The
following two sub-sections will
summarise the macroeconomic
trends ofAndhra Pradesh and the
Page 16
 Andhra Pradesh Economy
Agenda for Economic Reforms.
Review of Macroeconomic Trends
provided in the Agenda for
Economic Reforms in Andhra
Pradesh:--
Given its huge resource base, AP
has the potential for being one of the
fast growing states in India. Despite
this fact, AP‟s growth performance
has been poor. The average growth
rate of gross state domestic product
(GSDP) in the past fifteen years has
been far below its potential and
significantly below the national
average. Insufficient resources for
infrastructure and human resource
development and severe under
funding of operation and
maintenance (O&M) work are key
factors responsible for the state‟s
poor economic performance. The
expert group of the World Bank
team assessed the macroeconomic
performance of the Andhra Pradesh
state between 1980-81 and 1992-93.
During this period, the GSDP ofthe
AP state grew at an annual average
rate of 4.6 percent. This is
significantly lower than the national
average of 5.2 percent. The average
growth rate in the six fastest
growing states in India was 5.7
percent in the same period. All three
major sectors (agriculture, industry,
and services) recorded slower
growth rates in Andhra Pradesh than
PSCNOTES.COM
the all-India level and the six-state
average. As a result, the gap
between AP and the all-India
average in terms of per capita
income has significantly widened.
Per capita income in AP in 1980-81
was 85 percent of the national
average and 72 percent ofthe
average per capita income in the
fastest growing six states. This ratio
has fallen continuously. In 1992-93
it stood at 75 percent and 50 percent,
respectively. Structural change in
production has been modest. At
current prices, the share of
agriculture in GSDP fell from 44
percent in 1980-81 to 36 percent in
1992-93. The share ofservices
increased correspondingly, while the
share of industry remained almost
constant at about 20 percent.
Further, the expert committee found
that the growth ofGSDP has
significantly slowed in the past five
years. The average annual rate of
growth of GSDP fell from 5.5
percent in the period 1980-81 to
1988-89 and to 3.9 percent in the
period 1989-90 to 1993-94. The
slowdown is observed in all three
sectors but was particularly marked
in agriculture, where the growth rate
fell sharply from 4.7 percent to 1.8
percent. The share ofindustry in
GSDP is about one-fifth, which has
not changed significantly in the past
fifteen years. This is below the
Page 17
 Andhra Pradesh Economy
national average of about one-
quarter. Traditional agriculture or
resource-based activities such as
food processing, sugar, textiles,
cement, tobacco, and paper
dominate the industry. However,
pharmaceuticals, fertilizer, electrical
machinery, basic metals, and
software have also started to emerge
as new manufacturing activities. In
this situation, the expert team
proposed some reform measures to
improve the different sectors of the
economy of Andhra Pradesh, which
were summarized in the following
section.
Agenda for Economic Reforms:--
The strategy underlying the
Adjustment Scenario, as specified in
the Agenda for Economic Reforms
in Andhra Pradesh, is based on:
• a significant change in the
composition of expenditure from
unproductive to growth-enhancing
expenditure;
• strong cost-recovery efforts,
particularly in irrigation and power,
to raise adequate revenue to cover
the necessary O&M needs and
improve efficiency ofresource use;
• an improvement in the system that
broadens the revenue base and
increases buoyancy through
simplification and other
administrative measures;
PSCNOTES.COM
• a new anti-poverty strategy based
on acceleration of growth and
employment creation, with smaller
but better targeted subsidy programs
for the very poor;
• a focus on rebuilding the long-
neglected physical and social
infrastructure; and
• acceleration of private sector
participation in infrastructure,
particularly in the power, road, and
port sectors.
The Core Reform Programme for
Andhra Pradesh:-
Reprioritizing expenditure:--
• Rice scheme: Replace the good
quality rice by cheaper food grains
to facilitate self-targeting. Reduce
the number of beneficiaries from the
present 85 percent to about 30
percent of the population. Ensure the
issue price covers at least 50 percent
of the costs.
• Reduce staffing in the public sector
by 1 percent a year until 2001/02.
• Substantially increase expenditure
on O&M, education, health, and
public investment.
Improving expenditure
management:-
• Introduce zero-budgeting and
three-year rolling expenditure plans
Page 18
 Andhra Pradesh Economy
with continuous assessment
ofperformance, efficiency, and
priorities.
• Start budget formulation with
realistic revenue projections.
Establish explicit budget ceilings for
each department at the beginning
ofbudget preparation.
Reforming public enterprises:-
• Establish an autonomous
Commission to plan and implement
PE reforms. Ensure that the
Commission prepares an action plan
with deadlines for reform and starts
implementing it, and prepares
transparent guidelines for
privatization of PEs.
• Establish a state-level Renewal
fund for voluntary retirement and
retraining of affected workers.
Reforming the tax system:-
• Sales Tax: after adequate
preparation, replace the present
nineteen-commodity scheme with a
“trade margin” VAT for larger
dealers as an intermediate step to
full VAT. Abolish the Turnover
Tax.
• Improve and simplify tax
administration. Phase out sales tax
concession. Formulate a plan to
introduce full VAT in 2-3 years.
• Stamp duties: reduce excessive
PSCNOTES.COM
rates, remove concession, abolish
nuisance stamps. Consider
abolishing orreducing the 3% tax on
secondary sales or assignment
ofbonds.
• Profession Tax: step up the
administrative efforts to collect this
tax from self-employed
professionals
Restructuring the power sector:--
• Raise the power rate to farmers to
Ps 50 per kwh or higher. Continue to
adjust tariffs to cover costs and
reduce crosssubsidies. Improve the
quality or service delivery. Meter
power supply to farmers.
• Progressively privatize the
distribution business.
• Enact legislation to enable
establishment of an independent
regulatory body and corporatization
ofpower utilities.
Improving the efficiency ofthe
public canal irrigation network:-
• Increase O&M allocations in the
budget to meet the required norms.
Improve the service quality.
• Raise water rates to cover full
costs. Ensure effective collection of
water charges.
• Accelerate formation ofWUAs and
handover O&M responsibilities to
Page 19
 Andhra Pradesh Economy
them.
• Improve the planning and
management capacity ofthe
irrigation Department.
Improving maintenance and
upgrading of roads:-
• Increase O&M allocations in the
budget to the required norms. For
this purpose, set up a State Road
Fund and finance it from the Vehicle
Tax and Sales Taxes on fuels.
• Improve the technical and
management capacity ofthe Road
and Building Department and
redefine its role in the light of the
recommendations ofthe ongoing
technical assistance study.
Speeding up private sector
participation in the port sector:--
• Clearly define the projects being
offered to private parties and state
the terms and conditions, and
establish transparent ground rules
for BOT arrangements.
• Commission prefeasibility studies
for the projects offered to the private
sector.
Implementing universal primary
schooling:-
• Improve the quality ofschooling by
ensuring that pupils and teachers
have adequate teaching material,
PSCNOTES.COM
increasing the amount
ofinstructional time in schools,
involving local bodies in operation
ofschools, and enhancing teachers‟
training.
• Increase budgetary allocations for
education particularly in primary
education
• Raise fees in post-secondary
education to at least 30 percent of
unit costs in the first instance.
Improving public health services:-
• Improve coordination among
service-providing institutions,
streamline norms and technical
standards.
• Increase budgetary allocations to
the primary and the secondary levels
by at least 50 percent.
• Raise user chargers for hospital
services at the secondary and tertiary
levels to recover 15-20 percent ofthe
costs with exemptions for the
vulnerable groups.
• Strengthen the state‟s capacity to
register, certify, regulate, and
monitor the private health sector.
This agenda is a formidable
challenge for AP, but the state has
the resources and capacity to meet
the challenge. This amply
demonstrated by the policy measures
introduced in July-August 1996,
Page 20
 Andhra Pradesh Economy

following extensive public debate
generated by the presentation
ofseveral white papers on the
pressing problems the state face.
Involving public in policy debate
through white papers provide
transparency in the policy making
process and this proved to be
effective.
Economic Reforms ofAndhra
Pradesh through Vision 2020:--
In 1995-96, the economy ofthe state
ofAndhra Pradesh was slightly
below the mean of all-States, in
terms of broad indicators of
development and faced severe
financial crisis. The Government of
Andhra Pradesh responded boldly
and imaginatively to this challenge,
by undertaking measures to raise tax
and non-tax revenues and by
launching several reforms to
restructure the institutions for the
management of physical and social
infrastructure, after holding wide-
ranging discussions with experts and
people at large. These initiatives
have earned a name for Andhra
Pradesh as being in the forefront of
economic reforms, raising high
expectations within the country and
abroad about its performance. As
part ofits reform package, the
Government ofAndhra Pradesh has
prepared “Vision 2020 Swama
Andhra Pradesh” document, which
PSCNOTES.COM
envisages that the SDP will increase
at a trend setting growth rate of 9.1
per cent per annum in the 25-year
period of 1995-2020. The Vision
2020 Swama Andhra Pradesh,
projects a comprehensive outline
ofthe development possibilities in
Andhra Pradesh till 2020.
The Vision 2020 Andhra Pradesh
projected the growth rates for each
major sector of the economy -
Agriculture, Industry and Services.
The trend setting growth rate in
agriculture for the 25-year period
would be 5.7 per cent per annum.
Vision 2020 hopes that the trend
setting growth rate of GSDP for the
whole period of 25 years would be a
whopping 10.3 per cent per annum.
In so far as industry is concerned, its
trend setting rate ofgrowth over the
whole period would be 10.9 per cent
per annum. The services sector is
the key segment in the projected
growth of Andhra Pradesh. The
trend setting rate of growth ofthe
service sector for the whole period
will be 11.7 per cent, higher than
that in industry and much higher
than in agriculture. In fact, it would
be higher than the overall trend
growth rate ofthe Andhra Pradesh
GDP.
Economic Reforms ofAndhra
Pradesh: Post -Vision 2020:-
 The Government of Andhra
Page 21
 Andhra Pradesh Economy

Pradesh has implemented 1,259 crore relating to

many reform measures agricultural consumers of
proposed in the Vision 2020 DISCOMs and RESCOs.
document during the post-
 The Government has started a
vision 2020 period:-
New Employment Generation
 During the year 2004, the scheme with the aim of
Government has taken up providing ten lakhs jobs in the
plans to fully utilize the private sector to the
available yields of Godavari unemployed youth. To
and other rivers and initiated a achieve this, a society called
historical beginning named “Rajiv Udyogasri” has been
„JALAYAGNAM‟ with the set up in July 2007.
aim of completing the
 The Government ofAndhra
ongoing and new projects in a
Pradesh has approved 103
record time, to provide
Special Economic Zones
immediate irrigation to water
(SEZ) and 73 SEZs are
starving segments on top
notified. Of the 73 notified, 40
priority by mobilizing funds
SEZs have already become
from all possible sources.
operational creating 54,776
Some more projects were
jobs, with 35,269 jobs of
added to the Jalayagnam
direct employment and 19,507
Programme and presently 86
jobs by indirect employment.
projects (44 Major + 30
Medium + 4 Flood Banks + 8  Apart from the general
Modernisation) were economic policies and bold
considered under Jalayagnam. policy initiatives, the targeted
poverty alleviation
 The Government of Andhra
programmes like Velugu or
Pradesh provided free power
Indira Kranthi Patham (IKP)
to the Agriculture Sector with
for women‟s empowerment,
effect from 14.05.2004 in
INDIRAMMA programme for
view of the extreme hardships
providing housing and other
faced by agriculture
infrastructure, pensions, land
consumers in the past. The
distribution, introduction of
Government has also waived
104 and 108 services in the
the power consumption
health sector and health
arrears amounting to Rs.

PSCNOTES.COM Page 22
 Andhra Pradesh Economy
insurance (Arogyasri) are the
other important programmes
helping the poor in various
dimensions.
Economic Reforms ofAndhra
Pradesh through Vision 2029:--
Recently in 2016 AP Goverment
released the draft of 'Sunrise Andhra
Pradesh Vision 2029' document that
envisions to "remould" the state into
a "happy and globally-competitive
society" by 2029. Highlight of
vision Statement:-
 Vision 2029 has been
 The people of Andhra Pradesh
envision transforming their
state into happy, inclusive,
responsible, globally-
competitive and innovation-
driven society through
structural transformation and
by sustaining double-digit
economic growth to become
one amongst the three best
states in India by 2022 and the
best state by 2029.
 The state, as per the Vision,
 Andhra Pradesh will also
adopt the global Sustainable
Development Goals (SDG)
2030, to direct and drive the
social and economic
development policies and
programmes in the state.
SDG-2030 contains 17 goals
PSCNOTES.COM
and 169 targets like ending
poverty and hunger,
improving health and
education, making cities more
sustainable and combating
climate change.As some of
the goals and targets in SDG-
2030 are not of direct
relevance to Andhra Pradesh,
the state government has
customised those into 12 goals
and 115 targets that are
directly consequential and on
which the state will initiate
action.
delineated into different
programme phases with
Vision 1.0 programme phase
(2015-19) premised on
endowing all citizens with
their basic rights and
saturating access to basic
amenities to immediately
advance their standard of
living, well-being and
happiness.
targets to achieve a human
development indicator of 0.7
that is rated as high by the
UNDP by 2019 and a HDI of
0.8 (very high) by 2022. By
2029, the government will
ambitiously strive to improve
the HDI of the state to a value
Page 23
 Andhra Pradesh Economy
of over 0.9.
 A Sunrise AP Vision 2029
Governing Board under the
chairmanship of the Chief
Minister for steering and
mentoring the implementation
of the Vision.
 The government projected
that Rs 17 lakh crore will be
required for building
infrastructure in the state by
2029.
 The Vision foresees a
"structural shift" with
agricultural labour force
declining from 55 per cent in
2014-15 to 40 per cent in
2029 and industrial workforce
reaching up to 30 per cent.
 The Agriculture sector's share
in the state's economy is
expected to dip from 28 per
cent in 2014-15 to 22-25 per
cent in 2029. But the
industry's share will increase
from 20 per cent to 25-28 per
cent, the Vision document
said.
 AP‟s Industrial Policy-2015-
20 assures clearances within
21 days through a single desk
clearance system after which
it is deemed approved based
on self-certification. AP‟s
PSCNOTES.COM
policy also gives spot
approvals for identified
enterprises and clearances;
exemptions from seeking
approvals for investments in
certain category of industries;
assignment of Inspection to
Private Technical Experts;
State Investment Promotion
Board (SIPB) and Empowered
Committee of Secretaries for
expediting decision making.
Impact of Economic and Tax
reforms in Andhra Pradesh:---
 In 2016 Andhra Pradesh
occupied the top slot in the
country in terms of the growth
rate of gross state domestic
product (GSDP). The
performance appraisal
document recently released
shows that AP stood first with
10.99% growth in GSDP for
2015-16. The growth rate of
GSDP in other states is: Bihar
(10.27%), MP (10.16%),
Telangana (9.24%),
Maharashtra (8%), Karnataka
(6.2%), Odisha (6.16%) and
Punjab (5.96%). Official
statistics show that AP
contributes 4.3%of all-India
gross domestic product.
 In terms of per capita income
at current prices, AP crossed
Rs 1 lakh mark for the first
Page 24
 Andhra Pradesh Economy

time during 2015-16. Andhra the economy is evident from the

Pradesh, which stood ninth remarkable transition to a high
among states during 2014-15, growth
has improved its position in
path, which has been achieved in the
2015-16. AP with a per capita
recent years
income of Rs 1.07 lakh per
annum is preceded by
Karnataka (Rs 1.45 lakh),
Telangana (Rs 1.43 lakh) and
Punjab (1.26 lakh). Andhra Pradesh
Planned development
 In year 2016 Telangana and
Andhra Pradesh have jointly Planned development in Andhra
topped the ease of doing Pradesh:
business ranking with a score
of 98.78 per cent while As Andhra Pradesh is a new state, it
Gujarat, the former number requires to rebuilt its capital and initiate
one, has slipped to the third many new projects. This should be
position.
very well planned for maximum and
foremost benefits.

To advance interest in the Information

Technology (IT)/Information
Technology Enabled Services
(ITES)/Electronic Hardware
Manufacturing (EHM) units, the
Government of India had told strategy
on Information Technology Investment
Impact of Economic Regions (ITIRs) in May 2008. ITIRs

Due to a number ofstrategic will act naturally contained

initiativesput in place in the State, incorporated township to quicken
by development of IT/ITeS/EHM industry.

and large the living standards ofthe

people have improved. The strength
of Planned development Areas:

PSCNOTES.COM Page 25
 Andhra Pradesh Economy

Below are the major areas where endorsement was at that point agreed
planned development is much needed. by GoI.

In its undertaking to help its •Government of Andhra Pradesh

development/ITeS, BPM and ESDM
industry, the GoAP has embraced a
few foundation ventures to empower
organizations to begin operations in
the city. These include:
•Infrastructure
•Ports Development Infrastructure
•Power Plants
•Agriculture
(GoAP) proposed to create PRIDEs at
SPS Nellore, Kurnool (inside proposed
Kurnool Mega Industrial Hub) and
Prakasam (inside proposed
Donakonda Mega Industrial Hub)
Districts. APIIC connected with IIDC
Limited (An IL&FS Group Company)
for planning of Project Report, Site
Master Plan and application records.
•Signature Towers with 9 lakh square
feet of developed region in slope 3 of
Madhurwada IT SEZ

•E-Governance •IT Tower for advancing space

particular advancement at Siripuram
•IT and Electronics
grew together by VUDA and Software
•Education Technology Parks of India (STPI)

•Water •Millennium Towers with 3 lakh square

feet of developed region in slope 3 of
•Women and Child Welfare
Madhurwada IT SEZ
•Tourism
•Society for Applied Microwave
Electronics Engineering and Research
(SAMEER) R&D complex at
Major development projects:
Gambheeram by the Government of
•Government of Andhra Pradesh India
(GoAP) proposed to create NIMZs at
•Electronic Manufacturing Cluster
Chittoor and Prakasam Districts for
arranged in 128 sections of land of
which on a fundamental level
land at Gurrampalem

PSCNOTES.COM Page 26
 Andhra Pradesh Economy

•National Investment and •Visakhapatnam Smart City

Manufacturing Zones (NIMZ),
•Utilities – Electricity and water supply
Anantapuram
•Sanitation and strong waste
•Solar Park by NTPC in Anantapuram
administration
•Anantapuram is a piece of the
•Efficient open transportation, metro
proposed Bengaluru Kurnool Industrial
and urban versatility
corridor15 and Chennai – Bengaluru
Industrial Corridor (CBIC) •Affordable lodging

•Upcoming Bharat Electronics Ltd.

Safeguard frameworks incorporation
Planned development in
complex in Palasamudram spread
Agriculture:
more than 914 sections of land
Advancement of Agriculture Sector in
•Defence producing groups arranged
Andhra Pradesh State is "the
in Anantapur
bejeweled rice bowl of India". Farming
•Plans to build up an existence divisions assumes a vital part in the
Sciences Park and SEZ in Hindupur occupations of individuals as 63% of
the populace in Andhra Pradesh live in
•1750 (inexact) sections of land of land
country territories and rely upon
reserved for a SEZ, Industrial and
horticulture and related business
Residential township at Hindupur in
openings.
Seemandhra
Horticulture assumes a vital part in the
•Vittal Innovation city(VIC) to set up a
economy as well as for accomplishing
devoted Aerospace and Defense stop
the nourishment security for the state
•Electronic Manufacturing Cluster at and furthermore for the entire nation.
Renigunta (M) and Yerpeedu (M), The principle challenges for
Chittoor Dist. government are, developing water
shortage, corrupting regular assets like
•Electronic Manufacturing Cluster,
land and diminishing per capita
Tirupati Vikruthamala (V), Chittoor
accessibility of land and water assets.
Dist.
The State of Andhra Pradesh with 13
•Tirupati Smart City locale has awesome potential for

PSCNOTES.COM Page 27
 Andhra Pradesh Economy

farming and united parts. Andhra The Directorate of Town and Country
Pradesh State comprises of six agro Planning has two particular capacities,
climatic zones and five distinctive soil one under urban front and the other on
sorts to develop extensive variety of the rustic front. APSDMS was
harvests consistently. expanded and the name changed to
APSDPS to encourage making of a
Legislature of Andhra Pradesh has
center Development Planning unit that
composed a procedure to change the
offers support to the Planning
horticulture and associated areas in
Department.
Partnership with International Crops
Research Institute (ICRISAT) to The general public was institutionally
empower Andhra Pradesh among the fortified to help the Planning
best three performing states in India by Department to embrace the exercises
2022 following 75 years of freedom. relating to RF based arranging and
development estimating through expert
The Primary Sector mission is the
help and systems administration with
fundamental mission and the
different national global associations.
accompanying are the targets was
expanding profitability of the essential APSDPS has been shaped to help the
area, relieving the effect of dry Planning Department to attempt
seasons through water Conservation exercises relating to Result Framework
and small scale water system, present (RF) based arranging and
collect administration on decrease the development determining through
wastage; and foundation of preparing, expert help, mainstreaming the
esteem expansion limit and inventory catastrophe alleviation and systems
network of the distinguished harvests. administration with different national
and universal associations.
The Directorate of Town and Country
Planning has two particular capacities, The Directorate of Town and Country
one under urban front and the other on Planning has two particular capacities,
the provincial front one under urban front and the other on
the provincial front. In regard of urban
territory especially the Municipal towns
Planned Township for newly are arranged and controlled under the
created state: arrangements of APTP Act,1920 under

PSCNOTES.COM Page 28
 Andhra Pradesh Economy

the arrangements of neighborhood India, and additionally one of the best

body acts, viz., Municipal Corporation 3 rice creating states, other than Uttar
Act, Andhra Pradesh Municipalities act Pradesh and West Bengal.
and A.P Urban Areas Accessibility of prepared labor,
(Development)Act and A.P. reasonable atmosphere, and moderate
Cinematography Act. land costs are a portion of the central
point that make Andhra Pradesh an
In regard of Rural Areas, the
ideal place for extensive scale farming.
advancements are controlled under
the arrangements of Andhra Pradesh Accordingly, the state is persistently
Panchayat Raj Act,1992 in regard of watching an expansion in agrarian
endorsement designs and allowing profitability quite a long time. Climate
consents for enterprises and estimates say that in the present year,
establishments. Andhra Pradesh will get a genuinely
decent storm. Accordingly, the state is
While a noteworthy segment of the
evaluating to deliver around 18 million
proposed speculations is gone for
nourishment grains in 2016-2017 when
enhancing power supply to country
contrasted with 136.73 lakh tons a
zones, the undertaking will likewise
year ago. The state is additionally
concentrate on exhibiting the
focusing to build the yield of
arrangement of shrewd networks in
groundnut, heartbeats, maize and oil
chose towns.
seed trims in perspective of the gauge
of higher precipitation.

Andhra Andhra Pradesh is seeing a precarious

Pradesh Food development in the quantity of SEZs
Security and private undertakings, because of
which the utilization is relied upon to
develop at a vast scale. Therefore, the
Andhra Pradesh Food Production point of expanding efficiency in
status: cultivating is likewise firmly identified
with satisfying the requests of the
rising populace other than influencing
Andhra Pradesh is one of the main the cultivating bother to free for
sustenance grain delivering states in agriculturists.

PSCNOTES.COM Page 29
 Andhra Pradesh Economy

The legislature of Andhra Pradesh is

additionally giving a lot of appropriation
Changes in Targeted Public
to the ranchers to empower them to
Distribution System:
utilize best assets for their yields.
Increment in trim range will have a (1) For productive operations of the
noteworthy influence in adding to the Targeted Public Distribution System:
horticultural benefits of the state as the
(a) The A.P. State Civil Supplies
estimations demonstrate that zone
Corporation Ltd or the office approved
under harvest creation will increase by
by the State Government might make
5% in the coming year.
and keep up logical storerooms at
In addition, the deficiency of water for State, District, and Mandal levels to
water system was an overwhelming oblige sustenance grains required
explanation behind decrease in the under the TPDS and other welfare
yield generation a year ago which will plans.
be repaid by the forecast of ideal storm
(b) Establish organized permitting
this year.
framework to run reasonable value
shops as per the PDS (Control) Order
2015 and National Food Security Act,
At AGROCORP, in the wake of
2013 through Public foundations or
thinking about the ideal conditions in
nearby bodies, Self-help gatherings,
Andhra Pradesh to create high ROI in
Cooperatives.
agribusiness, it built up its agro
cultivates in 2012 in the Hindupur (c) Keeping in see the general
region of the state to deliver trims on population intrigue, the State
an extensive scale. Government may supplant all or any of
the reasonable value shop
Directly, it develops Melia Dubia,
merchants/assigned retailer/peddler
tomatoes, bean stew, gherkin, turmeric
and depend the dispersion through a
and a few other income boosting crops
shop set up by the State Government,
for its financial specialists. Because of
a State Government undertaking or a
our drive, it possesses a slight bit of
Corporation completely claimed by the
offer in the rural profitability of Andhra
State Government or a Co-agent
Pradesh.
Society for the advantage of people

PSCNOTES.COM Page 30
 Andhra Pradesh Economy

having a place with Scheduled Castes generation expanded a bit, though

or Scheduled Tribes, under a jowar, different millets and wheat fell.
Government Scheme or neighborhood In the oilseeds portion, the creation of
bodies and ladies Self-help gatherings. groundnut and castor saw a drop while
sesamum generation moved forward.
(d) To guarantee straightforwardness
and responsibility of conveyance of Amid FY 2016– 17, Andhra Pradesh
fundamental items to the focused on had a 28% of precipitation deficiency
recipients, accessible advancements than normal — 4% shortage amid
must be used to accomplish end-to- South West rainstorm and 71%
end computerization of PDS. shortfall amid North East storm.
Further, in the express, the aggregate
inundated territory to net zone sown is
Food and Agriculture 50.38%. Evidently, the yields amid
Kharif season have adequate water,
while cultivating in rabi season has
Quick forward, amid FY 2016– 17, the endured because of precipitation
agribusiness and unified parts shortfall, and lower levels of water in
developed at 14.03% — with cultivation supplies since December 2016.
developing at 16.79%, fisheries at
Manure utilization, an intermediary for
30.09%, and domesticated animals at
the farming yield, is path beneath
12.18% . This segment contributed a
earlier years. This is presumably in
27.8% of aggregate state's GVA (net
light of the fact that the composts
esteem included), with ₹1,38,833
utilization information is accessible
crores at 2011– 12 steady costs.
until the Kharif period of 2016, and the
As per the appraisals of Economic dissemination of neem-covered urea
Survey of Andhra Pradesh, 2016– 17, has influenced the utilization of
the sustenance grains creation was different manures.
156.85 lakh tons, and oilseeds
generation was 24.62 lakh tons, an
expansion from the earlier year of Role of Cultivation, Livestock and
9.09% and 12.9% separately. In the Fisheries in Food Security:
sustenance grains segment — paddy,
bajra, maize, ragi, and heartbeats

PSCNOTES.COM Page 31
 Andhra Pradesh Economy

The cultivation, animals and fisheries tons) (FAO Report 2012). AP is

contribute 25%, 26%, and 13% each to contributing 1.19% of worldwide and
the aggregate farming and partnered 20.77% of national fish creation
areas. Cultivation has been the (2014– 15).
quickest developing fragment in the
Agribusiness and Allied Sectors: GVA
horticulture and partnered segments
at Constant Prices (2011– 12). Note:
took after by the domesticated animals
2016– 17 are propelled gauges.
portion.
Source: Economic Survey of Andhra
The state stands second in Egg Pradesh, 2016– 17
generation (1417.67 crores), fourth in
Regarding development and esteem,
Meat creation (5.66 lakh Metric Tons)
cultivation, domesticated animals, and
and fifth in Milk generation (108.17
fisheries areas are commanding the
Lakh Metric Tons) in the nation
farming and unified part when
according to the evaluations of GoI
contrasted with the conventional rural
amid 2015– 16.
division. For the performing sectors —
To give a point of view, the GVA of  the cultivation, domesticated animals
domesticated animals sub-area is and fisheries — ₹1,015, ₹1,112, and
higher than assembling, development, ₹282 crores each — a 26.4% of
land sub-divisions, while the GVA of aggregate assignments were made in
agriculture is higher than exchange the financial plan FY2017– 18 (a sum
and inn, and transport and capacity of ₹9,091 crores were designated to
sub-parts. horticulture and associated segments).
The focused on cultivating segment is
GVA Estimates of Agriculture and
given a bigger number of designations
Allied, Industry, and Services Sectors
than the developing unified areas.
in Andhra Pradesh. Source: Economic
Survey of Andhra Pradesh, 2016– 17 The results of 14.03% development in
the horticulture and associated areas
AP positions first in absolute fish and
need to think about the upward
shrimp creation and contributes over
financial versatility of the inexact 62%
70% of refined shrimp delivered in the
of the state's populace reliant on these
nation. AP positions third in Global
divisions.
shrimp creation (0.3 million tons), sixth
in aquaculture generation (1.57 million

PSCNOTES.COM Page 32
 Andhra Pradesh Economy

The positive signs would be an accomplished through comprehensive,

expansion in the homestead earnings, impartial and supportable
the enhanced monetary status of the improvement.
reliant families, and customary
Andhra Pradesh Revenue
obligation reimbursement by the
ranchers. With the administration The income for the state in Financial
spending enormous spending plan on Year 2015-16 stood at Rs.39,922
the homestead advance waiver, free Crores from Own Tax sources,
power supply, manure appropriation, Rs.4,920 Cr. from Own Non Tax
accessibility of credit and so on., it is sources and Rs.45,249 Cr. of Central
imperative to track the ranch level Exchange. The subtle elements of the
salaries to target and bolster the most State's Own Tax Revenue, Own Non
helpless areas engaged with the Tax Revenues and Resource spill out
horticultural and partnered segments. of the Center for the Financial Year
2016-17 (RE) with the Financial Year
Andhra Pradesh Public
2015-16 is given in below chart.
finance and fiscal policy

Introduction:

The economy of the State of Andhra

Pradesh is developing at a
phenomenal amazing rate and is
among the top entertainers of the
Country regardless of the considerable
number of challenges what's more,
negative conditions, the State endured
as result of bifurcation. The
Government through its visionary
administration and productive
administration by its administrators has
been endeavoring ceaselessly with an Andhra Pradesh Tax Revenue
engaged vision of changing the state
into Swarna Andhra - which will be

PSCNOTES.COM Page 33
 Andhra Pradesh Economy
The aggregate Own Tax Revenue was
Rs.39,922 Crores in Money related
Year 2015-16 and Rs.49,282 Crores in
Financial Year 2016-17 (RE). The
sythesis of person segments of Own
Tax Revenue for Financial Year 2016-
17 (RE) is appeared as Chart 3.2. It is
to take note of that Sales Duty
represented 73 percent of the State's
Own Tax Income for Financial Year
2016-17 RE.
Andhra Pradesh Non Tax Revenue
Andhra Pradesh Non Tax Revenue
was Rs.4,920 Crores in the Financial
Year 2015-16 and was Rs.4,500
PSCNOTES.COM
Crores in financial Year 2016-17 (RE).
The principle commitment towards the
State's Own Non Tax Revenue
incorporated the Mines and Mineral,
Forests, Education and Other income
sources. The structure of these income
sources are given in Chart 3.3. Mines
and Minerals, Forests and Education
segment contributed 25%, 20% and
21% separately towards the State's
Own Non Tax Revenue in the FY
2015-16.
Central Transfers:
Asset spill out of the Center was
Rs.45,249 Crores in the Financial Year
2015-16 and was Rs.54,011 Crores in
Financial Year 2016-17 (RE). Fund
Commission designation constituted a
noteworthy segment of this Central
Exchanges, which was Rs.30,078
Crores in the Financial Year 2015-16
Page 34
 Andhra Pradesh Economy
and Rs.33,630 Crores in Financial
Year 2016-17 (RE). The focal
exchanges for the Financial Year
2015-16 and Financial Year 2016-17
(RE) are explained in below Graph.
Andhra Pradesh Expenditure:
The Total Expenditure by the State
barring ways and implies progress was
Rs.1,10,510 Crores in the Financial
Year 2015-16 and was Rs.1,26,871
Crores in Financial Year 2016-17 (RE).
The income consumption was
Rs.95,950 Crores in the Financial Year
2015-16 and was Rs.1,12,306 Crores
in Financial Year 2016-17 (RE). It is
critical to say that in its endeavor to
assemble a created Andhra Pradesh,
the state burned through Rs.14,172
Crores on its Capital Cost in Financial
Year 2015-16. This was mostly spent
on capital works like water system,
streets and framework. Income
consumption through welfare plans like
endowment rice, control endowment,
PSCNOTES.COM
pavala vaddi, maturity benefits, lodging
programs and so forth.
Fiscal and Revenue Deficits:
In the Financial Year 2015-16, Andhra
Pradesh confronted a Income Deficit of
Rs.7,302 Crores and a Fiscal Deficit of
Rs.21,863 Cr. Because of engaged
and arranged administration of as
enthusiasm towards its obligations in
the Financial Year 2016- 17 (RE)
wherein it had paid Rs.9,848 Crores
towards intrigue installments in the
Financial Year 2015-16. The Debt
extraordinary as level of GSDP was
28.50 percent in Money related Year
2015-16 which boiled down to 27.60%
in Money related Year 2016-17 (RE).
This is a result of the more noteworthy
GSDP development in the state amid
this period.
Andhra Pradesh Fiscal Policy
Page 35
 Andhra Pradesh Economy

The State's Fiscal Policy Strategy

proclamation set out beneath is
In any case, Fiscal shortfall to be
commanded under area 5 and 6 of the
underneath 3% of GSDP for the above
Fiscal Responsibility and Budget
period. In the show post bifurcation
Management (FRBM) Act, 2005 to be
situation, it is not conceivable to follow
laid before the Legislature. The
the conditionality recommended in the
Strategy Statement might incorporate
APFRBM Act, 2005 and the State
an approach outline and the viewpoint
Government is additionally seeking
for the following year on tax collection,
after with Government of India for
consumption, borrowings, sinking and
unwinding of FRBM targets.
possibility subsidize.
The State Fiscal Policy procedure is to
As ordered in the above Act, the State
control income consumption by cutting
Government needed to take out
managerial expenses with the
Income Deficit by 31st March, 2009 by
utilization of accessible present day
decreasing 0.32 rate focuses in GSDP
innovation on the one hand and
consistently. In the meantime
assemble enough assets by enhancing
monetary shortfall must be brought
charge organization then again, in
down to 3% of GSDP by decreasing
order to improve interest in gainful
0.25 percent focuses each year. The
capital resources what's more, social
State Government kept up income
parts keeping in mind the end goal to
surplus consistently amid the thirteenth
accomplish reasonable and impartial
Finance Commission period. Be that
financial development.
as it may, subsequent on bifurcation of
State of Andhra Pradesh, the year Andhra Pradesh Human
2014-15 brought about income Development Index
shortage and Government of India
guaranteed to fill the income hole for
that year. As suggested by the The HDI is a measure for evaluating
fourteenth Finance Commission the progress in three essential
State Government has been measurements of human
proclaimed as Income Deficit for the improvement: a long and solid life,
commission time frame i.e. from 2015- access to learning, and access to a
16 to 2019-20. better than average way of life.

PSCNOTES.COM Page 36
 Andhra Pradesh Economy

The world's best three nations in HDI improvement is characterized as a

are Norway, Australia and Switzerland. procedure of growing individuals'
India descended one place to 131st decision and raising the level of
place from 130 among the 188 nations prosperity. These decisions can be
positioned as far as human endless and change after some time
advancement. India's HDI estimation and space..
of 0.624 places it in the "medium
No other marker of advancement has
human advancement" classification,
pulled in as much open consideration
close by nations, for example, Congo,
as of late as the HDI. The way to deal
Namibia and Pakistan. It is positioned
with this list picked up energy with the
third among the SAARC nations,
arrival of the yearly Human
behind Sri Lanka (73) and the
Development Reports (HDR) by the
Maldives (105), both of which figure in
UNDP since 1990. The idea itself isn't,
the "high human advancement"
in any case, new. From among these,
classification.
the UNDP, through its worldwide
In India, in the vicinity of 1990 and HDRs, recognizes the decision to lead
2015, future has enhanced by 10.4 a long and solid life; to get learning
years. Child ailing health declined by and be taught and to approach assets
10% focuses from 2015. There were required for a not too bad level of living
some humble pick up in newborn child as the three most basic and socially
and under-five death rates. The report important pointers for measuring HDI.
commended India's reservation
Andhra Pradesh estimated HDI is 0.9
arrangement, saying despite the fact
as per vision 2029.
that it has not cured standing based
rejections, it has had significant
constructive outcomes.
Below is Annual estimates of infant
It likewise hailed the MGNREGA, Right mortality rate for men and women in
to Information, National Food Security, rural and urban areas of States and
and Right to Education Acts. It praised UTs.
the Indian grassroots gathering
Mazdoor Kisan Shakti Sanghatan for
advancing social reviews of
government plans.Human

PSCNOTES.COM Page 37
 Andhra Pradesh Economy

Steps Taken for improvement in HDI

rank:

The activities taken by the

Government to additionally expand the
HDI in the state include:

We can see in the above table that • Promoting institutional conveyances,

Andhra Pradesh is making good fortifying of wellbeing framework,
progress as compared to total nation. preparing of specialist organizations in
However, there is still a need of more administration of crisis obstetric care
attention for woman development. and talented birth participation, giving

As indicated by the report Human risk natal and post-natal care,

Development in Andhra Pradesh arranging town wellbeing and

arranged for Government of Andhra nourishment days, engagement of a

Pradesh by Center for Economic and certify social wellbeing dissident

Social Studies in 2016, the rank of (ASHA) in the group, setting up referral

Andhra Pradesh in Human frameworks including crisis referral

Development Index(HDI) among 21 transport.

noteworthy States of India was 12 out • Preparing of specialist co-ops in

of 2004-05 and 9 out of 2011-12. In
addition, according to the said report,
the areas of Andhra Pradesh with a
lower HDI in 2004-05 have enhanced
their HDI status quicker contrasted
with alternate locale by 2011-12.
incorporated administration of neo-
natal and adolescence ailment,
preparing of ASHAs in Home based
new conceived mind, preparing of
medicinal services suppliers in basic
new-conceived care and revival, giving

This reflects declining disparities in new-conceived mind at all levels,

HDI over the regions. The same is advancing select breastfeeding and

obvious if there should be an reciprocal encouraging, foundation of

occurrence of the three parts of HDI, healthful restoration focuses.

viz., way of life, wellbeing and • Reinforcing routine vaccination

instruction. program focussing on decrease in

PSCNOTES.COM Page 38
 Andhra Pradesh Economy

dismalness and mortality because of Human development is dependent on

intense respiratory contaminations different parameters and state has
(ARI) and diarrhoeal maladies, done a lot of pre-checks to confirm that
presentation of name based web all parts gets equal and foremost
empowered following of pregnant importance.
ladies and youngsters (Mother and
Unemployment and Migration is still a
Child Tracking System) to guarantee
challenge for Andhra Pradesh. Also,
antenatal, intra-natal and postnatal
state has to remove regional
care to pregnant ladies and care to
imbalance from coastal region and
new-borns, newborn children and kids.
remote areas.
• Enactment and operationalisation of
Right of Children to Free and
Compulsory Education (RTE) Act, Major Projects
2009, SarvaShikshaAbhiyan, Mid-Day-
Electronic Manufacturing Cluster
Meal Scheme, National Program for (EMC) Scheme supports creation of
Education of Girls at Elementary level, world-class infrastructure for attracting
investments in the Electronics
setting up of Kasturba Gandhi Systems Design and Manufacturing
BalikaVidyalaya, MahilaSamakhya (ESDM) Sector. EMCs scheme
supports grant assistance for setting
program, plot for giving quality
up of both Greenfield and Brownfield
instruction in Madarasas. EMCs.

• Improving the obtaining energy of the To promote investment in the

general population through different
salary creating plans
Mahatma Gandhi National
Employment Guarantee Scheme.
• The National Food Security Act, 2013
plans to accommodate nourishment
and dietary security in human life cycle
approach, by guaranteeing access to
sufficient amount of value sustenance
at moderate costs to individuals to
carry on with an existence with nobility.
Information Technology (IT) /
Information Technology Enabled
including Services (ITES)/ Electronic Hardware
Manufacturing (EHM) units, the
Rural Government of India had notified
policy on Information Technology
Investment Regions (ITIRs) in May
2008. ITIRs will be self contained
integrated township to accelerate
growth of IT/ITeS/EHM industry.
The State Government would play the
lead role in setting up of the ITIR.
In its endeavour to support the
growth of IT/ ITeS, BPM and ESDM
industry, the GoAP has undertaken
several infrastructure projects to
enable companies to start

PSCNOTES.COM Page 39
 Andhra Pradesh Economy
operations in the city. These
include: :
 CRDA, Vijayawada
 Infrastructure
 Ports Development
Infrastructure
 Power Plants
 Agriculture
 E-Governance
 IT and Electronics
 Education
 Water
 Women & Child Welfare
 Tourism
 Government of Andhra
Pradesh (GoAP) proposed to
develop NIMZs at Chittoor
and Prakasam Districts for
which In-principle approval
was already accorded by GoI
 Government of Andhra
Pradesh (GoAP) proposed to
develop PRIDEs at SPS
Nellore, Kurnool (within
proposed Kurnool Mega
Industrial Hub) and
Prakasam (within proposed
Donakonda Mega Industrial
Hub) Districts. APIIC
engaged IIDC Limited (An
IL&FS Group Company) for
preparation of Project
Report, Site Master Plan and
application documents.
 Signature Towers with 9 lakh
square feet of built up area in
hill 3 of Madhurwada IT SEZ
 IT Tower for promoting
domain specific innovation at
Siripuram developed jointly
by VUDA and Software
Technology Parks of India
(STPI)
 Millennium Towers with 3
lakh square feet of built up
area in hill 3 of Madhurwada
IT SEZ
 Society for Applied
Microwave Electronics
PSCNOTES.COM
Engineering & Research
(SAMEER) R&D complex at
Gambheeram by the
Government of India
 Electronic Manufacturing
Cluster planned in 128 acres
of land at Gurrampalem
 National Investment and
Manufacturing Zones (NIMZ),
Anantapuram
 Solar Park by NTPC in
Anantapuram
 Anantapuram is part of the
proposed Bengaluru Kurnool
Industrial corridor15 and
Chennai – Bengaluru
Industrial Corridor (CBIC)
 Upcoming Bharat Electronics
Ltd. Defense systems
integration complex in
Palasamudram spread over
914 acres
 Defence manufacturing
clusters planned in
Anantapur
 Plans to develop a life
Sciences Park and SEZ in
Hindupur
 1750 (approximate) acres of
land earmarked for a SEZ,
Industrial and Residential
township at Hindupur in
Seemandhra
 Vittal Innovation city(VIC) to
set up a dedicated
Aerospace and Defence park
 Electronic Manufacturing
Cluster at Renigunta (M) &
Yerpeedu (M), Chittoor Dist.
 Electronic Manufacturing
Cluster, Tirupati
Vikruthamala (V), Chittoor
Dist.
 Tirupati Smart City
 Visakhapatnam Smart City
 Utilities – Electricity and
water supply
 Sanitation and solid waste
management
Page 40
 Andhra Pradesh Economy
 Efficient public
transportation, metro and
urban mobility
 Affordable housing
MAJOR SCHEMES
BANGARUTALLI – Maa Inti
Mahalaxmi
Bangarutalli is meant to take care of
Girl child in every household from her
birth till she completes her graduation.
If she gives birth to a baby girl Rs
2500/- will be deposited into her
account. Rs 1000 will be given for the
first two years at the time of
immunization. Rs 1500/- will be given
every year to the family through
Aanganwadis till the baby attains the
age of 5 years from 3rd years onwards.
At the time of admission to school, Rs
2000 will be given every year for her
studies from the first to the fifth
standard, and Rs 2500/- from sixth to
eight standard, Rs 3000/- for ninth and
tenth standard. For intermediate she
will be given Rs 3500/- each year and
Rs 4000/- a year during her
graduation.
SADAREM -
Objective of SADAREM initiative is to
create a dynamic web enabled system
for Comprehensive access,
rehabilitation and empowerment
through automation, capacity building,
assessment of person with disabilities
(PWDs) and maintaining decision
support system (DSS).
STREENIDHI CREDIT CO-
OPERATIVE FEDERATION LTD.
PSCNOTES.COM
Streenidhi credit co-operative
federation ltd is promoted by the
government and the mandal
samakhyas to supplement credit flow
from banking sector and is a flsgship
program of the government. Streenidhi
provides timely and affordable credit to
poor SHG members as a part of
overall strategy to help for poverty
alleviation.
BHOOMI – Land Access to Poor
Possession of land is not just
economics. It is a symbol of dignity. It
is self-respect, it is politics, it is power.
So government of AP has been
working in two direction to fulfil land
needs of poor. One is land purchase
i.e. securing the poor access to land
through facilitating purchase of good
quality irrigated lands and the other is
land access- facilitating the poor in
convergence with the revenue deptt.
To have control over their lands in
terms of having secure titles.
Community Managed Sustainable
Agriculture
The primary mission is to improve the
annual incomes of farmers in rain fed
areas in particular and agriculture in
general with integrated farming
systems. The CMSA is for developing
new tools and equipment for reducing
drudgery to women farmers, for
establishing village level infrastructure
for supply of these tools, for upgrading
women farmer‘s knowledge in eco-
friendly farming technologies, for
organising capacity building
programmes with new training content
and improved methods. For managing
Page 41
 Andhra Pradesh Economy

revolving fund for decentralized Government of AP introduced Velugu

extension system leading to multiple pension and Insurance scheme for the
livelihood options for the communities (Rural and Urban) SHG women to
to be managed by them on their own. provide income security in their old
age
KRuSHE
The fund serve said that the monetary
KRuSHE wing under SERP has been allowance was readied keeping in
incepted to promote entrepreneurship perspective of the proposed Goods
in farm and non-farm livelihoods and Services Tax (GST). The
among the members of rural SHG financial plan, rather than design and
households with focus on POP on non-design parts, will have income
saturation basis and to engage each use and capital use.
household in an entrepreneurial
activity for drought proofing the rural
household.
Here are the Budget 2017-18
For restoring the traditional arts and features:
crafts of AP, KRuSHE is an attempt to
link numerous artisans, craftsmen and
rural producers of the state to - Total Budget: Rs 1.56 lakh crore
remunerative markets. The objective
is that the artisans et the correct worth
for her produce and there is a
- Revenue consumption: Rs 1.25 lakh
substantial increase in the income of
crore
the artisan.

UNNATHI
- Capital consumption: Rs 31,087
The objective of UNNATHI is to enable
crore
every poorest of poor family in the
state to come out of poverty with
increased and sustainable livelihood
opportunities - Allocation for financial
administrations is Rs 56,575.53 crore
N T BHAROSA including farming and united
administrations (Rs 9,090 crore),
As part of its welfare programmes, the
country improvement (Rs 19,565
government of AP is implementing
crore), water system (Rs 12,770
various pension schemes for the most
crore) and vitality (Rs 4,275 crore)
needy and vulnerable population i.e.
the persons in old age, widows, people
with disabilities(PWDs), and weavers
to provide the succor. - Allocation for social administrations
is Rs 51,268.91 crore including
ABHAY HASTHAM general training (Rs 20,384 crore),

PSCNOTES.COM Page 42
 Andhra Pradesh Economy
welfare (Rs 11,361 crore) and
medicinal (Rs 7,020 crore)
- Rs 49,154.96 crore have been
allotted for general administrations
- Rs 450 crore for Visakhapatnam,
Tirupati and Kakinada for
advancement as Smart Cities
- Rs 150 crore for 13 urban
communities announced as shrewd
urban areas by AP government
- Rs 200 crore for Anna Canteens
- Rs 500 crore for joblessness pay
- Rs 1,061 crore for Capital Region
Development Authority
- Rs 100 crore for fast roundabout
sub-urban prepare venture between
Vijayawada-Amaravati-Guntur-Tenali
- Rs 1,600 crore towards capital
implantation for the improvement of
ladies and youngsters in country
territories
- Establishment of maturity homes
with a limit of 100 in each at
PSCNOTES.COM
Visakhapatnam, Guntur and
Anantapur
- Establishment of Ghantasala
Musuem in Vijayawada, Bapu
Museum, Kakinada Andhra Sahitya
Parishad and Amaravati Heritage
Center
- Establishment of eight uber
nourishment handling parks with open
private parternship in Srikakulam,
Vizianagaram, Visakhapatnam, East
Godavari, Chittoor, Kurnool and
Anantapur
- Development of Hope Island in
Kakinada, Konaseema and Nellore
drift as visitor spots
- Establishment of AP Industrial
Development Corridor
- MSME Development Authority to be
set up to advance MSME part.
Distribution of Rs 125 crore for
resuscitating the inadequately
performing MSMEs
- Rs 97.69 crore for setting up
Ambedkar Smriti Vanam in Amaravati
denoting the 125th birth
commemoration festivities of BR
Amedkar this year.
Page 43
 Andhra Pradesh Economy
The Finance Minister of Andhra
Pradesh, Mr. Yanamala
Ramakrishnudu, exhibited the Budget
for Andhra Pradesh for monetary year
2017-18 on March 15, 2017.
Spending Highlights
-18 is
assessed to be Rs 1,56,999 crore, a
18.3% expansion over the changed
gauge of 2016-17. In 2016-17, there
was a reduction of Rs 2,925 crore
(2.2%) in the changed gauge over the
spending gauge.
for 2017-18 are evaluated to be Rs
1,26,968 crore, an expansion of
17.9% over the modified
assessments of 2016-17. In 2016-17,
add up to receipts missed the mark
concerning the planned focus by Rs
2,859 crore.
following money related year is
focused at Rs 416 crore. Monetary
deficiency is focused at Rs 23,054
crore. Essential deficiency is focused
at Rs 8,272 crore.
(57%), Rural Development (27%),
and Health, Medical and Family
Welfare (22%) saw increments in
distributions for the year 2017-18.
PSCNOTES.COM
Then again, designation to the
Department of Municipal
Administration and Urban
Development saw a 22% diminishing
in assignment in 2017-18.
Strategy Highlights
crore has been distributed for the
Agriculture Debt Redemption
Scheme. In 2016-17, Rs 3,512 crore
was distributed to this plan.
assigned to finance the arrangement
of power supply to poor people.
with a limit of 1,000 MW each are to
be finished by 2018-19. What's more,
a breeze vitality limit of 5,000 MW will
be accomplished by 2018-19.
Pradesh Irrigation Livelihood
Improvement Project has been
proposed. It will cover the
modernization of 20 Major and
Medium Irrigation ventures, and the
rebuilding of 445 minor water system
tanks.
proposed to be embraced in 2017-18
under the Affordable Housing
Page 44
 Andhra Pradesh Economy
Projects. Rs 1,457 crore has been
apportioned for lodging under the
Pradhan Mantri Awas Yojana (PMAY)
and NTR Rural Housing plans.
Spending Estimates for 2017-18
2017-18 is focused at Rs 1,56,999
crore. The modified gauge for the
aggregate consumption in 2016-17
was Rs 1,32,764 crore, which is Rs
2,925 crore lower than the planned
focus of 2016-17.
-18 is
proposed to be met through receipts
(other than borrowings) of Rs
1,26,968 crore and borrowings of Rs
30,020 crore. Add up to receipts for
2017-18 (other than borrowings) are
relied upon to be Rs 2,859 crore
lower than the updated assessments
of 2016-17.
Shortages, Debts and FRBM Targets
for 2017-18
The Andhra Pradesh Fiscal
Responsibility and Budget
Management (FRBM) Act, 2005 gives
yearly focuses to dynamically lessen
the remarkable liabilities, income
shortage and monetary deficiency of
the state government.
PSCNOTES.COM
Income shortfall: It is the abundance
of income use over income receipts.
An income shortage suggests that the
administration needs to acquire to
fund its costs which don't make
capital resources. The Budget
evaluates an income shortage of Rs
416 crore in 2017-18.
Financial deficiency: It is the
overabundance of aggregate
consumption over aggregate receipts.
This hole is filled by borrowings by
the administration, and prompts an
expansion in all out liabilities of the
legislature. In 2017-18, financial
deficiency is assessed to be Rs
23,054 crore.
Extraordinary Liabilities: It is the
aggregation of borrowings throughout
the years. In 2017-18, the remarkable
liabilities are normal at 28.1% of state
GDP.
Note that the GSDP gauge for 2017-
18 has not been given in the financial
plan. With a specific end goal to give
appraisals of the income shortfall and
monetary deficiency as a % of GSDP,
we have figured the GSDPs from the
general population obligation as a %
of GSDP, as gave in the Budget in a
nutshell archive.
ANDHRA PRADESH : POWER
RESOURCES
The availability of reliable, quality and
affordable power helps in the rapid
agriculture, industrial and overall
Page 45
 Andhra Pradesh Economy
economic development of the state. The
total installed utility power generation
capacity is nearly 20,000 MW in the state.
Only 11,400 MW is the committed power
supply to the state with power purchase
agreements. Rest of the capacity is
exporting electricity mainly to Telangana
state depending on fuel availability.
Significant amount of investments were
made for building up generation capacity,
strengthening transmission and distribution
network, industrial feeder segregation, loss
reduction and improving quality of power
supply.
Current situation of power supply in
Andhra pradesh
power is being supplied to domestic,
commercial and industrial consumers
along with agricultural consumers in rural
areas through mixed feeders. There are
706 dedicated/express industrial feeders.
Seven hours three phase power supply is
being given to agricultural consumers
mostly in single/two spells and supply
timings are rotated every 7 days. Rural
areas are given single phase domestic
lighting from 6 PM to 6 AM. Three phase
supply to rural areas for domestic,
commercial and industrial consumers is
along with agricultural supply only. As a
result, most of the consumers, other than
agricultural, in rural areas on mixed
feeders get between 12 to16 hours of
supply every day, depending on
agricultural supply spell timings.
Agricultural feeders have been separated
from domestic feeders in fourteen mandals
on a pilot basis during in 2011.
The requirement of electricity i.e., both,
energy and peak demand are expected to
increase significantly in Andhra Pradesh
from the present level of 43,684 MU &
PSCNOTES.COM
6,158 MW to 82,392 MU and 13,436 MW
respectively by FY 2018-19 due to:
 Natural Load Growth.
 24x7 power supply to all
consumers
 Increase in electrification of
households
 Additional energy requirement for
upcoming capital city and
associated investments.
 New Industrial corridors
Non renewable energy
Thermal power
Thermal power plants are based on the fuel
coal, gas, diesel etc. Public sector
undertaking NTPC, state level power
generating companies and private firms are
engaged in this sector for power
generation. They contribute approx.
8,630MW capacity. Some important
thermal power plants of Andhra pradesh
are as follows :
Simhadri Super Thermal Power Plant :
Parawada (Visakhapatnam), 2000 MW
capacity
Dr Narla Tatarao TPS :
Ibrahimpatnam (Krishna), 1760 MW
capacity
Rayalaseema Thermal Power Station :
Muddanur ( Kadapa),
1050 MW capacity
Sri Damodaram Sanjeevaiah Power
Station Krishnapatna (Nellore)
1600 MW capacity
Page 46
 Andhra Pradesh Economy

Vizag Thermal Power Station Major hydroelectric power plants in

Gajuwaka (Visakhapatnam) 1040 MW Andhra Pradesh are as follows:
capacity
Chettipeta Mini Hydel plant
Simhapuri Thermal Power Station West Godavari district
Krishnapatanam (Nellore) 600 MW
capacity Donkarayi PH
E. Godavari
Meenakshi Thermal Power Station
Krishnapatanam (Nellore) 300 MW Lower Sileru PH
capacity E. Godavari

Machkund PH Located
in Odisha (Joint project of Andhra Pradesh
Gas turbine power plants & Odisha)

Nagarjuna Sagar Right Canal PH

Nagarjuna Sagar Dam, Guntur
APGPCL Plant district
Vijjeswaram (W. Godavari) 272
MW Penna Ahobilam PH Korrakodu
Anantapur district
Lanco Kondapalli Power Plant
Kondapalli (Krishna) 1466 Polavaram Hydro-Electric project
MW Polavaram, West Godavari

Gautami Combined Cycle Power Plant Srisailam Right Bank PH

Peddapuram (E. Godavari) Srisailam, Kurnool
464 MW
Upper Sileru PH
Konaseema Combined Cycle Power Visakhapatnam
Plant Ravulapalem (E. Godavari)
445 MW

Vemagiri Combined Cycle Power Plant Solar energy in Andhra pradesh

Vemagiri (E. Godavari) Solar power policy, 2015
370 MW
With the increasing consumption of solar
Silkroad sugar power plant energy in India, the state government of
Kakinada (E. Godavari) 35 MW Andhra Pradesh has also decided to avoid
the power crisis by utilizing solar power in
the state. Andhra Pradesh has released the
detailed list of qualified bidders for 500
MW solar projects, 63 bids qualified the
Renewable energy resources selection criteria, totalling up to 1291 MW.
Hydroelectricity To boost the Solar energy sector, the
government plans to facilitate installation

PSCNOTES.COM Page 47
 Andhra Pradesh Economy

of about 5,000 MW of solar power Some important wind power projects are
generation by 2019. as follows :

The Andhra pradesh has total installed Ramagiri Wind Mills Ramagiri
solar power capacity of 980 Megawatt.
Some important solar power projects in Narmada Wind farm Nallakonda
Andhra pradesh are as follows : Puthlur RCI Wind farm Puthlur
NP Kunta Ultra Mega Solar Power
Project Nambulapulakunta Anantapur (
250 mw)

Amruth Solar Power Plant

Kadiri Anantapur ( 1 mw)

MEIL Green Power Limited

Nagalapuram Anantapur ( 50 mw)

Wind power in Andhra pradesh

Wind power policy, 2015

Andhra Pradesh government has released

its new wind power policy, the new policy
will be known as Andhra Pradesh Wind
Power Policy 2015. It will replace the
previous policy in the state. The policy has
been revised to attract new investment in
the state. NREDCAP will act as a Nodal
Agency under this policy. The new policy
targets of achieving 4000 MW capacity Andhra Pradesh: Minerals
addition through wind power in next five
years. The main objectives of the state
Andhra Pradesh is very rich in terms
government is to encourage & develop the of minerals availability.
wind energy generation in the state, to
Andhra Pradesh is first in production
attract private investment and establish
large wind projects. The policy will remain of below minerals in India:
applicable for next 5 years or till amended
or replaced by new policy. Wind power Asbestos
projects commissioned under the policy Limestone
will be eligible for the incentives declared Mica
under this policy, for a period of 10 years .
Barytes
The Andhra pradesh has total installed
wind power capacity of 1866.35 MW.

PSCNOTES.COM Page 48
 Andhra Pradesh Economy
Now we will see status of Andhra
Pradesh in various minerals
Mica:
Andhra Pradesh is the largest mica
producing state of India.The mica
mining area lies in Nellore district
and is 100 km long and 25 km wide.
Nellore mica is generally light green
in colour; it is generally stained and
spotted. The other districts with
workable mica deposits are
Vishakhapatnam, West Godavari.
Shah mine in Gudur taluka is the
deepest with mining being done at
300 m depth.
The state production of Mica is
almost 72 per cent of all India
production. In the recent years, share
of Andhra Pradesh has increased in
respect to mica production.
Limestone
Andhra Pradesh possesses about
one-third of the total reserves of the
cement grade limestone in the
Mineral Unit Total Resources
Apatite Tonnes 237860
PSCNOTES.COM
country. Extensive deposits occur in
Kadapa, Kurnool, Guntur.
Uranium
The Tummalapalle Mine is a
uranium mine in Tumalapalli village
located in Kadapa of the Indian state
of Andhra Pradesh. Results from a
research conducted by the Atomic
Energy Commission of India in
2011 made the analysts conclude
that this mine might have one of the
largest reserves of uranium in the
world.
Asbestos:
Andhra Pradesh is the largest
producer of Asbestos in India.
Kadapa district of Andhra Pradesh
have Asbestos mines.
In the below table we can see total
reserves of minerals inAndhra
Pradesh:
Page 49
 Andhra Pradesh Economy

Asbestos Tonnes 56530

BallClay Tonnes 51281300

Barytes Tonnes 68478435

Calcite Tonnes 8798785

China Clay Tonnes 74175.77

Dolomite Tonnes 1182452.39

Feldspar Tonnes 21798561

Fire Clay Tonnes 23213.74

Garnet Tonnes 19064747

Iron Ore
Tonnes 381478
(Heamatite)

Laterite Tonnes 26257

Limestone Tonnes 37436377

Manganese Ore Tonnes 17598.11

Mica Kg 220786228

Ochre Tonnes 10883065

Pyrophyllite Tonnes 1350232

PSCNOTES.COM Page 50
 Andhra Pradesh Economy

Quartz & Silica '000

209031
Sand Tonnes

'000
Quartzite 23583
Tonnes

000
Shale 15911
Tonnes

Sillimanite Tonnes 9644500

Vermiculite Tonnes 354176

PSCNOTES.COM Page 51