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 crores and footwear machinery was

premiere information technology and provided to 10 Mini Leather Parks. The
IT-enabled service hubs. The state objective of the Action Plan was to the
capital region acquired a reputation as train leather artisans who were mainly
the Silicon Valley of India as a large from the Scheduled. Castes
number of IT firms had set up their community to form into Self Help
operations there. Starting in the 1990s, Groups (SHGs) and run the parks.
during this phase, many of the IT However the Government in
MNCs Like Microsoft, Oracle, Dell, subsequent years neglected the
Deloitte, HSBC, Computer Associates, leather sector. Even the International
Covergy's, Bank of America, CSC, Leather Park at Krishnapatnam has
TCS, Infosys, Infotech Enterprises, not made any progress since 2006.
Satyam, Verizon have initiated their
operations in Hyderabad.
The fund serve said that the monetary
Leather Sector: allowance was readied keeping in
perspective of the proposed Goods
Andhra Pradesh generates huge
and Services Tax (GST). The
quantities of raw material resource financial plan, rather than design and
which can promote leather sector. AP non-design parts, will have income
use and capital use.
provides 10% of India‘s raw material.
However, it could tan only 5% of the
raw materials due to lack of tanning Here are the Budget 2017-18
facilities. The balance 95% of raw features:
material is being transported to other
States for value addition. Realising this
- Total Budget: Rs 1.56 lakh crore
situation, the government in 2001 had
lunched ‗Malupu‖ program for
promotion of leather sector in the - Revenue consumption: Rs 1.25 lakh
crore
state. Under this scheme, 94 leather
parks consisting of 72 Mini, 16 Medium
and 6 mega leather parks were - Capital consumption: Rs 31,087
proposed covering all the districts. In crore
Phase-I, buildings were constructed for
the parks with an amount of Rs. 2.81

PSCNOTES.COM Page 5
 Andhra Pradesh Economy

- Allocation for financial - Rs 100 crore for fast roundabout

administrations is Rs 56,575.53 crore sub-urban prepare venture between
including farming and united Vijayawada-Amaravati-Guntur-Tenali
administrations (Rs 9,090 crore),
country improvement (Rs 19,565
crore), water system (Rs 12,770 - Rs 1,600 crore towards capital
crore) and vitality (Rs 4,275 crore) implantation for the improvement of
ladies and youngsters in country
territories
- Allocation for social administrations
is Rs 51,268.91 crore including
general training (Rs 20,384 crore), - Establishment of maturity homes
welfare (Rs 11,361 crore) and with a limit of 100 in each at
medicinal (Rs 7,020 crore) Visakhapatnam, Guntur and
Anantapur

- Rs 49,154.96 crore have been

allotted for general administrations - Establishment of Ghantasala
Musuem in Vijayawada, Bapu
Museum, Kakinada Andhra Sahitya
- Rs 450 crore for Visakhapatnam, Parishad and Amaravati Heritage
Tirupati and Kakinada for Center
advancement as Smart Cities

- Establishment of eight uber

- Rs 150 crore for 13 urban nourishment handling parks with open
communities announced as shrewd private parternship in Srikakulam,
urban areas by AP government Vizianagaram, Visakhapatnam, East
Godavari, Chittoor, Kurnool and
Anantapur
- Rs 200 crore for Anna Canteens

- Development of Hope Island in

- Rs 500 crore for joblessness pay Kakinada, Konaseema and Nellore
drift as visitor spots

- Rs 1,061 crore for Capital Region

Development Authority - Establishment of AP Industrial
Development Corridor

PSCNOTES.COM Page 6
 Andhra Pradesh Economy

- MSME Development Authority to be

set up to advance MSME part. following money related year is
Distribution of Rs 125 crore for focused at Rs 416 crore. Monetary
resuscitating the inadequately deficiency is focused at Rs 23,054
performing MSMEs crore. Essential deficiency is focused
at Rs 8,272 crore.

- Rs 97.69 crore for setting up

Ambedkar Smriti Vanam in Amaravati
denoting the 125th birth (57%), Rural Development (27%),
commemoration festivities of BR and Health, Medical and Family
Amedkar this year. Welfare (22%) saw increments in
distributions for the year 2017-18.
Then again, designation to the
The Finance Minister of Andhra Department of Municipal
Pradesh, Mr. Yanamala Administration and Urban
Ramakrishnudu, exhibited the Budget Development saw a 22% diminishing
for Andhra Pradesh for monetary year in assignment in 2017-18.
2017-18 on March 15, 2017.

Strategy Highlights
Spending Highlights

-18 is crore has been distributed for the

assessed to be Rs 1,56,999 crore, a Agriculture Debt Redemption
18.3% expansion over the changed Scheme. In 2016-17, Rs 3,512 crore
gauge of 2016-17. In 2016-17, there was distributed to this plan.
was a reduction of Rs 2,925 crore
(2.2%) in the changed gauge over the
spending gauge.
assigned to finance the arrangement
of power supply to poor people.

for 2017-18 are evaluated to be Rs

1,26,968 crore, an expansion of
17.9% over the modified with a limit of 1,000 MW each are to
assessments of 2016-17. In 2016-17, be finished by 2018-19. What's more,
add up to receipts missed the mark a breeze vitality limit of 5,000 MW will
concerning the planned focus by Rs be accomplished by 2018-19.
2,859 crore.

PSCNOTES.COM Page 7
 Andhra Pradesh Economy

Shortages, Debts and FRBM Targets

Pradesh Irrigation Livelihood for 2017-18
Improvement Project has been
proposed. It will cover the
modernization of 20 Major and The Andhra Pradesh Fiscal
Medium Irrigation ventures, and the Responsibility and Budget
rebuilding of 445 minor water system Management (FRBM) Act, 2005 gives
tanks. yearly focuses to dynamically lessen
the remarkable liabilities, income
shortage and monetary deficiency of
the state government.
proposed to be embraced in 2017-18
under the Affordable Housing
Projects. Rs 1,457 crore has been Income shortfall: It is the abundance
apportioned for lodging under the of income use over income receipts.
Pradhan Mantri Awas Yojana (PMAY) An income shortage suggests that the
and NTR Rural Housing plans. administration needs to acquire to
fund its costs which don't make
capital resources. The Budget
Spending Estimates for 2017-18 evaluates an income shortage of Rs
416 crore in 2017-18.

2017-18 is focused at Rs 1,56,999 Financial deficiency: It is the

crore. The modified gauge for the overabundance of aggregate
aggregate consumption in 2016-17 consumption over aggregate receipts.
was Rs 1,32,764 crore, which is Rs This hole is filled by borrowings by
2,925 crore lower than the planned the administration, and prompts an
focus of 2016-17. expansion in all out liabilities of the
legislature. In 2017-18, financial
deficiency is assessed to be Rs
-18 is 23,054 crore.
proposed to be met through receipts
(other than borrowings) of Rs
1,26,968 crore and borrowings of Rs Extraordinary Liabilities: It is the
30,020 crore. Add up to receipts for aggregation of borrowings throughout
2017-18 (other than borrowings) are the years. In 2017-18, the remarkable
relied upon to be Rs 2,859 crore liabilities are normal at 28.1% of state
lower than the updated assessments GDP.
of 2016-17.

PSCNOTES.COM 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 the state tourism over the most recent couple of
crosswise over enhanced areas which years. Andhra Pradesh is one of the
incorporate materials and clothing, biggest makers of saline water shrimps
nourishment handling, footwear and and freshwater prawns and contributes
cowhide items, multi-item, pharma, IT more than 20 for each penny to the
SEZs and so forth. 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  Millennium Towers with 3

growth of IT/ ITeS, BPM and ESDM lakh square feet of built up
industry, the GoAP has undertaken area in hill 3 of Madhurwada
several infrastructure projects to IT SEZ
enable companies to start  Society for Applied
operations in the city. These Microwave Electronics
include: : Engineering & Research
(SAMEER) R&D complex at
 CRDA, Vijayawada Gambheeram by the
 Infrastructure Government of India
 Ports Development  Electronic Manufacturing
Infrastructure Cluster planned in 128 acres
 Power Plants of land at Gurrampalem
 Agriculture  National Investment and
 E-Governance Manufacturing Zones (NIMZ),
 IT and Electronics Anantapuram
 Education  Solar Park by NTPC in
 Water Anantapuram
 Women & Child Welfare  Anantapuram is part of the
 Tourism proposed Bengaluru Kurnool
 Government of Andhra Industrial corridor15 and
Pradesh (GoAP) proposed to Chennai – Bengaluru
develop NIMZs at Chittoor Industrial Corridor (CBIC)
and Prakasam Districts for  Upcoming Bharat Electronics
which In-principle approval Ltd. Defense systems
was already accorded by GoI integration complex in
 Government of Andhra Palasamudram spread over
Pradesh (GoAP) proposed to 914 acres
develop PRIDEs at SPS  Defence manufacturing
Nellore, Kurnool (within clusters planned in
proposed Kurnool Mega Anantapur
Industrial Hub) and  Plans to develop a life
Prakasam (within proposed Sciences Park and SEZ in
Donakonda Mega Industrial Hindupur
Hub) Districts. APIIC  1750 (approximate) acres of
engaged IIDC Limited (An land earmarked for a SEZ,
IL&FS Group Company) for Industrial and Residential
preparation of Project township at Hindupur in
Report, Site Master Plan and Seemandhra
application documents.  Vittal Innovation city(VIC) to
 Signature Towers with 9 lakh set up a dedicated
square feet of built up area in Aerospace and Defence park
hill 3 of Madhurwada IT SEZ  Electronic Manufacturing
 IT Tower for promoting Cluster at Renigunta (M) &
domain specific innovation at Yerpeedu (M), Chittoor Dist.
Siripuram developed jointly  Electronic Manufacturing
by VUDA and Software Cluster, Tirupati
Technology Parks of India Vikruthamala (V), Chittoor
(STPI) Dist.
 Tirupati Smart City

PSCNOTES.COM Page 13
 Andhra Pradesh Economy

 Visakhapatnam Smart City STREENIDHI CREDIT CO-

 Utilities – Electricity and OPERATIVE FEDERATION LTD.
water supply
 Sanitation and solid waste Streenidhi credit co-operative
management federation ltd is promoted by the
 Efficient public government and the mandal
transportation, metro and
samakhyas to supplement credit flow
urban mobility
 Affordable housing from banking sector and is a flsgship
program of the government. Streenidhi
MAJOR SCHEMES provides timely and affordable credit to
poor SHG members as a part of
BANGARUTALLI – Maa Inti overall strategy to help for poverty
Mahalaxmi alleviation.
Bangarutalli is meant to take care of BHOOMI – Land Access to Poor
Girl child in every household from her
birth till she completes her graduation. Possession of land is not just
If she gives birth to a baby girl Rs economics. It is a symbol of dignity. It
2500/- will be deposited into her is self-respect, it is politics, it is power.
account. Rs 1000 will be given for the
So government of AP has been
first two years at the time of
working in two direction to fulfil land
immunization. Rs 1500/- will be given
needs of poor. One is land purchase
every year to the family through
i.e. securing the poor access to land
Aanganwadis till the baby attains the
through facilitating purchase of good
age of 5 years from 3rd years onwards.
quality irrigated lands and the other is
At the time of admission to school, Rs land access- facilitating the poor in
2000 will be given every year for her convergence with the revenue deptt.
studies from the first to the fifth To have control over their lands in
standard, and Rs 2500/- from sixth to terms of having secure titles.
eight standard, Rs 3000/- for ninth and
Community Managed Sustainable
tenth standard. For intermediate she
Agriculture
will be given Rs 3500/- each year and
Rs 4000/- a year during her The primary mission is to improve the
graduation. annual incomes of farmers in rain fed
areas in particular and agriculture in
SADAREM -
general with integrated farming
Objective of SADAREM initiative is to systems. The CMSA is for developing
create a dynamic web enabled system new tools and equipment for reducing
for Comprehensive access, drudgery to women farmers, for
rehabilitation and empowerment establishing village level infrastructure
through automation, capacity building, for supply of these tools, for upgrading
assessment of person with disabilities women farmer‘s knowledge in eco-
(PWDs) and maintaining decision friendly farming technologies, for
support system (DSS). organising capacity building

PSCNOTES.COM Page 14
 Andhra Pradesh Economy

programmes with new training content ABHAY HASTHAM

and improved methods. For managing
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
Economic and tax Reforms in
KRuSHE wing under SERP has been Andhra Pradesh:-
incepted to promote entrepreneurship
in farm and non-farm livelihoods On 16 May 2017 Andhra Pradesh
among the members of rural SHG Legislature passed the state Goods
households with focus on POP on
and Services Tax (GST) Bill and
saturation basis and to engage each
household in an entrepreneurial
contributed towards biggest
activity for drought proofing the rural Economic and Tax reform.
household. Meanwhile State has a glorious
history of Economic and Tax
For restoring the traditional arts and
crafts of AP, KRuSHE is an attempt to
reforms.
link numerous artisans, craftsmen and
First Phase of Economic Reforms
rural producers of the state to
remunerative markets. The objective
in Andhra Pradesh:--
is that the artisans et the correct worth The attention of economists and
for her produce and there is a
policy makers has turned towards
substantial increase in the income of
the artisan. reforms at

UNNATHI the state level in the late 1990s,

because it is being recognized that
The objective of UNNATHI is to enable
every poorest of poor family in the
the first phase of economic reforms
state to come out of poverty with will not be complete without
increased and sustainable livelihood reforms at the state level. The
opportunities programmes for development and
N T BHAROSA
welfare cannot take off without
reforms at the state level, which are
As part of its welfare programmes, the the Constitutional repositories ofthe
government of AP is implementing
responsibilities in these sectors. A
various pension schemes for the most
needy and vulnerable population i.e. competition was witnessed among
the persons in old age, widows, people the states, irrespective ofthe political
with disabilities(PWDs), and weavers philosophy of the Governments in
to provide the succor. power, for reforms at the state level

PSCNOTES.COM Page 15
 Andhra Pradesh Economy

as a means of attracting investments, Until 1991, the state was a

preferably foreign investments. The monopolistic supplier
state of Andhra Pradesh was in the ofinfrastructure services; the private
forefront ofthis competition; it was sector could not compensate for
the first state to have initiated the inadequate public funding for
World Bank to suggest measures of infrastructure. While this situation
reform, to have attracted the Bank‟s changed since 1991 and the state has
advice and package of assistance for sought to attract private investment
such a programme and to have in infrastructure, the inappropriate
initiated steps suggested by it. pricing policies and weaknesses in
the policy and regulatory framework
World Bank Agenda for Economic
have remained important constraints.
Reforms in Andhra Pradesh:--
In this context, the Government of
Since the early 1980s AP has Andhra Pradesh has approached the
developed a public expenditure World Bank, India Country
strategy based on large allocation to Department, to assess the existing
numerous broad-based subsidy and economic situation and suggest a
welfare programs. Among India‟s suitable agenda for economic
states, AP has the highest proportion reforms to implement them in
of non-interest expenditure allocated Andhra Pradesh. The World Bank
to such programs. This has diverted appointed a broad based committee
scarce public resources away from with multi-sector experts in 1996 to
productive uses in economic and assess the existing economic
social infrastructure, and has situation ofAndhra Pradesh and
consequently discouraged private suggest a suitable agenda for
investment and curtailed growth. On economic reforms at the state level.
account of its poor growth This committee has surveyed the
performance, AP has failed to existing economic situation in
expand the revenue base needed to different sectors ofAndhra Pradesh
finance its subsidy and welfare economy and has prepared an
programs. As a result, the Agenda for Economic Reforms,
government has been caught in a which was approved by the
vicious circle and, has been Government of India as well as the
increasingly forced to divert funds Government of Andhra Pradesh. The
away from productive uses and following two sub-sections will
resort to high-cost borrowing to summarise the macroeconomic
meet its commitment to subsidies. trends ofAndhra Pradesh and the

PSCNOTES.COM Page 16
 Andhra Pradesh Economy

Agenda for Economic Reforms. the all-India level and the six-state
average. As a result, the gap
Review of Macroeconomic Trends
between AP and the all-India
provided in the Agenda for
average in terms of per capita
Economic Reforms in Andhra
income has significantly widened.
Pradesh:--
Per capita income in AP in 1980-81
Given its huge resource base, AP was 85 percent of the national
has the potential for being one of the average and 72 percent ofthe
fast growing states in India. Despite average per capita income in the
this fact, AP‟s growth performance fastest growing six states. This ratio
has been poor. The average growth has fallen continuously. In 1992-93
rate of gross state domestic product it stood at 75 percent and 50 percent,
(GSDP) in the past fifteen years has respectively. Structural change in
been far below its potential and production has been modest. At
significantly below the national current prices, the share of
average. Insufficient resources for agriculture in GSDP fell from 44
infrastructure and human resource percent in 1980-81 to 36 percent in
development and severe under 1992-93. The share ofservices
funding of operation and increased correspondingly, while the
maintenance (O&M) work are key share of industry remained almost
factors responsible for the state‟s constant at about 20 percent.
poor economic performance. The Further, the expert committee found
expert group of the World Bank that the growth ofGSDP has
team assessed the macroeconomic significantly slowed in the past five
performance of the Andhra Pradesh years. The average annual rate of
state between 1980-81 and 1992-93. growth of GSDP fell from 5.5
During this period, the GSDP ofthe percent in the period 1980-81 to
AP state grew at an annual average 1988-89 and to 3.9 percent in the
rate of 4.6 percent. This is period 1989-90 to 1993-94. The
significantly lower than the national slowdown is observed in all three
average of 5.2 percent. The average sectors but was particularly marked
growth rate in the six fastest in agriculture, where the growth rate
growing states in India was 5.7 fell sharply from 4.7 percent to 1.8
percent in the same period. All three percent. The share ofindustry in
major sectors (agriculture, industry, GSDP is about one-fifth, which has
and services) recorded slower not changed significantly in the past
growth rates in Andhra Pradesh than fifteen years. This is below the

PSCNOTES.COM Page 17
 Andhra Pradesh Economy

national average of about one- • a new anti-poverty strategy based

quarter. Traditional agriculture or on acceleration of growth and
resource-based activities such as employment creation, with smaller
food processing, sugar, textiles, but better targeted subsidy programs
cement, tobacco, and paper for the very poor;
dominate the industry. However,
• a focus on rebuilding the long-
pharmaceuticals, fertilizer, electrical
neglected physical and social
machinery, basic metals, and
infrastructure; and
software have also started to emerge
as new manufacturing activities. In • acceleration of private sector
this situation, the expert team participation in infrastructure,
proposed some reform measures to particularly in the power, road, and
improve the different sectors of the port sectors.
economy of Andhra Pradesh, which
were summarized in the following The Core Reform Programme for
section. Andhra Pradesh:-

Reprioritizing expenditure:--
Agenda for Economic Reforms:--

The strategy underlying the • Rice scheme: Replace the good

quality rice by cheaper food grains
Adjustment Scenario, as specified in
to facilitate self-targeting. Reduce
the Agenda for Economic Reforms
in Andhra Pradesh, is based on: the number of beneficiaries from the
present 85 percent to about 30
• a significant change in the percent of the population. Ensure the
composition of expenditure from issue price covers at least 50 percent
unproductive to growth-enhancing of the costs.
expenditure;
• Reduce staffing in the public sector
• strong cost-recovery efforts, by 1 percent a year until 2001/02.
particularly in irrigation and power,
• Substantially increase expenditure
to raise adequate revenue to cover
the necessary O&M needs and on O&M, education, health, and
improve efficiency ofresource use; public investment.

• an improvement in the system that Improving expenditure

broadens the revenue base and management:-
increases buoyancy through • Introduce zero-budgeting and
simplification and other three-year rolling expenditure plans
administrative measures;
PSCNOTES.COM Page 18
 Andhra Pradesh Economy

with continuous assessment rates, remove concession, abolish

ofperformance, efficiency, and nuisance stamps. Consider
priorities. abolishing orreducing the 3% tax on
secondary sales or assignment
• Start budget formulation with
ofbonds.
realistic revenue projections.
Establish explicit budget ceilings for • Profession Tax: step up the
each department at the beginning administrative efforts to collect this
ofbudget preparation. tax from self-employed
professionals
Reforming public enterprises:-
Restructuring the power sector:--
• Establish an autonomous
Commission to plan and implement • Raise the power rate to farmers to
PE reforms. Ensure that the Ps 50 per kwh or higher. Continue to
Commission prepares an action plan adjust tariffs to cover costs and
with deadlines for reform and starts reduce crosssubsidies. Improve the
implementing it, and prepares quality or service delivery. Meter
transparent guidelines for power supply to farmers.
privatization of PEs.
• Progressively privatize the
• Establish a state-level Renewal distribution business.
fund for voluntary retirement and
• Enact legislation to enable
retraining of affected workers.
establishment of an independent
Reforming the tax system:- regulatory body and corporatization
ofpower utilities.
• Sales Tax: after adequate
preparation, replace the present Improving the efficiency ofthe
nineteen-commodity scheme with a public canal irrigation network:-
“trade margin” VAT for larger
• Increase O&M allocations in the
dealers as an intermediate step to
budget to meet the required norms.
full VAT. Abolish the Turnover
Improve the service quality.
Tax.
• Raise water rates to cover full
• Improve and simplify tax
costs. Ensure effective collection of
administration. Phase out sales tax
water charges.
concession. Formulate a plan to
introduce full VAT in 2-3 years. • Accelerate formation ofWUAs and
handover O&M responsibilities to
• Stamp duties: reduce excessive

PSCNOTES.COM Page 19
 Andhra Pradesh Economy

them. increasing the amount

ofinstructional time in schools,
• Improve the planning and
involving local bodies in operation
management capacity ofthe
ofschools, and enhancing teachers‟
irrigation Department.
training.
Improving maintenance and
• Increase budgetary allocations for
upgrading of roads:-
education particularly in primary
• Increase O&M allocations in the education
budget to the required norms. For
• Raise fees in post-secondary
this purpose, set up a State Road
education to at least 30 percent of
Fund and finance it from the Vehicle
unit costs in the first instance.
Tax and Sales Taxes on fuels.
Improving public health services:-
• Improve the technical and
management capacity ofthe Road • Improve coordination among
and Building Department and service-providing institutions,
redefine its role in the light of the streamline norms and technical
recommendations ofthe ongoing standards.
technical assistance study.
• Increase budgetary allocations to
Speeding up private sector the primary and the secondary levels
participation in the port sector:-- by at least 50 percent.

• Clearly define the projects being • Raise user chargers for hospital
offered to private parties and state services at the secondary and tertiary
the terms and conditions, and levels to recover 15-20 percent ofthe
establish transparent ground rules costs with exemptions for the
for BOT arrangements. vulnerable groups.

• Commission prefeasibility studies • Strengthen the state‟s capacity to

for the projects offered to the private register, certify, regulate, and
sector. monitor the private health sector.

Implementing universal primary This agenda is a formidable

schooling:- challenge for AP, but the state has
the resources and capacity to meet
• Improve the quality ofschooling by
the challenge. This amply
ensuring that pupils and teachers
demonstrated by the policy measures
have adequate teaching material,
introduced in July-August 1996,

PSCNOTES.COM Page 20
 Andhra Pradesh Economy

following extensive public debate envisages that the SDP will increase
generated by the presentation at a trend setting growth rate of 9.1
ofseveral white papers on the per cent per annum in the 25-year
pressing problems the state face. period of 1995-2020. The Vision
Involving public in policy debate 2020 Swama Andhra Pradesh,
through white papers provide projects a comprehensive outline
transparency in the policy making ofthe development possibilities in
process and this proved to be Andhra Pradesh till 2020.
effective.
The Vision 2020 Andhra Pradesh
Economic Reforms ofAndhra projected the growth rates for each
Pradesh through Vision 2020:-- major sector of the economy -
Agriculture, Industry and Services.
In 1995-96, the economy ofthe state
The trend setting growth rate in
ofAndhra Pradesh was slightly
agriculture for the 25-year period
below the mean of all-States, in
would be 5.7 per cent per annum.
terms of broad indicators of
Vision 2020 hopes that the trend
development and faced severe
setting growth rate of GSDP for the
financial crisis. The Government of
whole period of 25 years would be a
Andhra Pradesh responded boldly
whopping 10.3 per cent per annum.
and imaginatively to this challenge,
In so far as industry is concerned, its
by undertaking measures to raise tax
trend setting rate ofgrowth over the
and non-tax revenues and by
whole period would be 10.9 per cent
launching several reforms to
per annum. The services sector is
restructure the institutions for the
the key segment in the projected
management of physical and social
growth of Andhra Pradesh. The
infrastructure, after holding wide-
trend setting rate of growth ofthe
ranging discussions with experts and
service sector for the whole period
people at large. These initiatives
will be 11.7 per cent, higher than
have earned a name for Andhra
that in industry and much higher
Pradesh as being in the forefront of
than in agriculture. In fact, it would
economic reforms, raising high
be higher than the overall trend
expectations within the country and
growth rate ofthe Andhra Pradesh
abroad about its performance. As
GDP.
part ofits reform package, the
Government ofAndhra Pradesh has Economic Reforms ofAndhra
prepared “Vision 2020 Swama Pradesh: Post -Vision 2020:-
Andhra Pradesh” document, which
 The Government of Andhra
PSCNOTES.COM 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 and 169 targets like ending

other important programmes poverty and hunger,
helping the poor in various improving health and
dimensions. education, making cities more
sustainable and combating
climate change.As some of
Economic Reforms ofAndhra the goals and targets in SDG-
Pradesh through Vision 2029:-- 2030 are not of direct
relevance to Andhra Pradesh,
Recently in 2016 AP Goverment
the state government has
released the draft of 'Sunrise Andhra
customised those into 12 goals
Pradesh Vision 2029' document that and 115 targets that are
envisions to "remould" the state into directly consequential and on
a "happy and globally-competitive
which the state will initiate
society" by 2029. Highlight of
action.
vision Statement:-
 Vision 2029 has been
 The people of Andhra Pradesh
delineated into different
envision transforming their programme phases with
state into happy, inclusive,
Vision 1.0 programme phase
responsible, globally-
(2015-19) premised on
competitive and innovation- endowing all citizens with
driven society through
their basic rights and
structural transformation and
saturating access to basic
by sustaining double-digit amenities to immediately
economic growth to become advance their standard of
one amongst the three best
living, well-being and
states in India by 2022 and the
happiness.
best state by 2029.
 The state, as per the Vision,
 Andhra Pradesh will also
targets to achieve a human
adopt the global Sustainable
development indicator of 0.7
Development Goals (SDG)
that is rated as high by the
2030, to direct and drive the UNDP by 2019 and a HDI of
social and economic 0.8 (very high) by 2022. By
development policies and
2029, the government will
programmes in the state.
ambitiously strive to improve
SDG-2030 contains 17 goals the HDI of the state to a value

PSCNOTES.COM Page 23
 Andhra Pradesh Economy

of over 0.9. policy also gives spot

approvals for identified
 A Sunrise AP Vision 2029
enterprises and clearances;
Governing Board under the
exemptions from seeking
chairmanship of the Chief
approvals for investments in
Minister for steering and
certain category of industries;
mentoring the implementation
assignment of Inspection to
of the Vision.
Private Technical Experts;
 The government projected State Investment Promotion
that Rs 17 lakh crore will be Board (SIPB) and Empowered
required for building Committee of Secretaries for
infrastructure in the state by expediting decision making.
2029. Impact of Economic and Tax
 The Vision foresees a reforms in Andhra Pradesh:---
"structural shift" with  In 2016 Andhra Pradesh
agricultural labour force occupied the top slot in the
declining from 55 per cent in country in terms of the growth
2014-15 to 40 per cent in rate of gross state domestic
2029 and industrial workforce product (GSDP). The
reaching up to 30 per cent. performance appraisal
 The Agriculture sector's share document recently released
in the state's economy is shows that AP stood first with
expected to dip from 28 per 10.99% growth in GSDP for
cent in 2014-15 to 22-25 per 2015-16. The growth rate of
cent in 2029. But the GSDP in other states is: Bihar
industry's share will increase (10.27%), MP (10.16%),
from 20 per cent to 25-28 per Telangana (9.24%),
cent, the Vision document Maharashtra (8%), Karnataka
said. (6.2%), Odisha (6.16%) and
Punjab (5.96%). Official
 AP‟s Industrial Policy-2015- statistics show that AP
20 assures clearances within contributes 4.3%of all-India
21 days through a single desk gross domestic product.
clearance system after which
it is deemed approved based  In terms of per capita income
on self-certification. AP‟s at current prices, AP crossed
Rs 1 lakh mark for the first
PSCNOTES.COM 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 (GoAP) proposed to create PRIDEs at
industry, the GoAP has embraced a SPS Nellore, Kurnool (inside proposed
few foundation ventures to empower Kurnool Mega Industrial Hub) and
organizations to begin operations in Prakasam (inside proposed
the city. These include: Donakonda Mega Industrial Hub)
Districts. APIIC connected with IIDC
Limited (An IL&FS Group Company)
•Infrastructure for planning of Project Report, Site
Master Plan and application records.
•Ports Development Infrastructure
•Signature Towers with 9 lakh square
•Power Plants
feet of developed region in slope 3 of
•Agriculture 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 Crores in financial Year 2016-17 (RE).
Rs.39,922 Crores in Money related The principle commitment towards the
Year 2015-16 and Rs.49,282 Crores in State's Own Non Tax Revenue
Financial Year 2016-17 (RE). The incorporated the Mines and Mineral,
sythesis of person segments of Own Forests, Education and Other income
Tax Revenue for Financial Year 2016- sources. The structure of these income
17 (RE) is appeared as Chart 3.2. It is sources are given in Chart 3.3. Mines
to take note of that Sales Duty and Minerals, Forests and Education
represented 73 percent of the State's segment contributed 25%, 20% and
Own Tax Income for Financial Year 21% separately towards the State's
2016-17 RE. 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
Andhra Pradesh Non Tax Revenue Financial Year 2016-17 (RE). Fund
Commission designation constituted a
Andhra Pradesh Non Tax Revenue
noteworthy segment of this Central
was Rs.4,920 Crores in the Financial
Exchanges, which was Rs.30,078
Year 2015-16 and was Rs.4,500
Crores in the Financial Year 2015-16

PSCNOTES.COM Page 34
 Andhra Pradesh Economy

and Rs.33,630 Crores in Financial pavala vaddi, maturity benefits, lodging

Year 2016-17 (RE). The focal programs and so forth.
exchanges for the Financial Year
2015-16 and Financial Year 2016-17
(RE) are explained in below Graph.

Fiscal and Revenue Deficits:

Andhra Pradesh Expenditure:
In the Financial Year 2015-16, Andhra
The Total Expenditure by the State Pradesh confronted a Income Deficit of
barring ways and implies progress was Rs.7,302 Crores and a Fiscal Deficit of
Rs.1,10,510 Crores in the Financial Rs.21,863 Cr. Because of engaged
Year 2015-16 and was Rs.1,26,871 and arranged administration of as
Crores in Financial Year 2016-17 (RE). enthusiasm towards its obligations in
The income consumption was the Financial Year 2016- 17 (RE)
Rs.95,950 Crores in the Financial Year wherein it had paid Rs.9,848 Crores
2015-16 and was Rs.1,12,306 Crores towards intrigue installments in the
in Financial Year 2016-17 (RE). It is Financial Year 2015-16. The Debt
critical to say that in its endeavor to extraordinary as level of GSDP was
assemble a created Andhra Pradesh, 28.50 percent in Money related Year
the state burned through Rs.14,172 2015-16 which boiled down to 27.60%
Crores on its Capital Cost in Financial in Money related Year 2016-17 (RE).
Year 2015-16. This was mostly spent This is a result of the more noteworthy
GSDP development in the state amid
on capital works like water system,
this period.
streets and framework. Income
consumption through welfare plans like
endowment rice, control endowment,
Andhra Pradesh Fiscal Policy

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

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

PSCNOTES.COM Page 39
 Andhra Pradesh Economy

operations in the city. These Engineering & Research

include: : (SAMEER) R&D complex at
Gambheeram by the
 CRDA, Vijayawada Government of India
 Infrastructure  Electronic Manufacturing
 Ports Development Cluster planned in 128 acres
Infrastructure of land at Gurrampalem
 Power Plants  National Investment and
 Agriculture Manufacturing Zones (NIMZ),
 E-Governance Anantapuram
 IT and Electronics  Solar Park by NTPC in
 Education Anantapuram
 Water  Anantapuram is part of the
 Women & Child Welfare proposed Bengaluru Kurnool
 Tourism Industrial corridor15 and
 Government of Andhra Chennai – Bengaluru
Pradesh (GoAP) proposed to Industrial Corridor (CBIC)
develop NIMZs at Chittoor  Upcoming Bharat Electronics
and Prakasam Districts for Ltd. Defense systems
which In-principle approval integration complex in
was already accorded by GoI Palasamudram spread over
 Government of Andhra 914 acres
Pradesh (GoAP) proposed to  Defence manufacturing
develop PRIDEs at SPS clusters planned in
Nellore, Kurnool (within Anantapur
proposed Kurnool Mega  Plans to develop a life
Industrial Hub) and Sciences Park and SEZ in
Prakasam (within proposed Hindupur
Donakonda Mega Industrial  1750 (approximate) acres of
Hub) Districts. APIIC land earmarked for a SEZ,
engaged IIDC Limited (An Industrial and Residential
IL&FS Group Company) for township at Hindupur in
preparation of Project Seemandhra
Report, Site Master Plan and  Vittal Innovation city(VIC) to
application documents. set up a dedicated
 Signature Towers with 9 lakh Aerospace and Defence park
square feet of built up area in  Electronic Manufacturing
hill 3 of Madhurwada IT SEZ Cluster at Renigunta (M) &
 IT Tower for promoting Yerpeedu (M), Chittoor Dist.
domain specific innovation at  Electronic Manufacturing
Siripuram developed jointly Cluster, Tirupati
by VUDA and Software Vikruthamala (V), Chittoor
Technology Parks of India Dist.
(STPI)  Tirupati Smart City
 Millennium Towers with 3  Visakhapatnam Smart City
lakh square feet of built up  Utilities – Electricity and
area in hill 3 of Madhurwada water supply
IT SEZ  Sanitation and solid waste
 Society for Applied management
Microwave Electronics

PSCNOTES.COM Page 40
 Andhra Pradesh Economy

 Efficient public Streenidhi credit co-operative

transportation, metro and federation ltd is promoted by the
urban mobility government and the mandal
 Affordable housing
samakhyas to supplement credit flow
MAJOR SCHEMES from banking sector and is a flsgship
program of the government. Streenidhi
BANGARUTALLI – Maa Inti provides timely and affordable credit to
Mahalaxmi poor SHG members as a part of
overall strategy to help for poverty
Bangarutalli is meant to take care of alleviation.
Girl child in every household from her
birth till she completes her graduation. BHOOMI – Land Access to Poor
If she gives birth to a baby girl Rs
2500/- will be deposited into her Possession of land is not just
account. Rs 1000 will be given for the economics. It is a symbol of dignity. It
first two years at the time of is self-respect, it is politics, it is power.
immunization. Rs 1500/- will be given So government of AP has been
every year to the family through working in two direction to fulfil land
Aanganwadis till the baby attains the needs of poor. One is land purchase
age of 5 years from 3rd years onwards. i.e. securing the poor access to land
At the time of admission to school, Rs through facilitating purchase of good
2000 will be given every year for her quality irrigated lands and the other is
studies from the first to the fifth land access- facilitating the poor in
standard, and Rs 2500/- from sixth to convergence with the revenue deptt.
eight standard, Rs 3000/- for ninth and To have control over their lands in
tenth standard. For intermediate she terms of having secure titles.
will be given Rs 3500/- each year and Community Managed Sustainable
Rs 4000/- a year during her Agriculture
graduation.
The primary mission is to improve the
SADAREM - annual incomes of farmers in rain fed
Objective of SADAREM initiative is to areas in particular and agriculture in
create a dynamic web enabled system general with integrated farming
for Comprehensive access, systems. The CMSA is for developing
rehabilitation and empowerment new tools and equipment for reducing
through automation, capacity building, drudgery to women farmers, for
assessment of person with disabilities establishing village level infrastructure
(PWDs) and maintaining decision for supply of these tools, for upgrading
support system (DSS). women farmer‘s knowledge in eco-
friendly farming technologies, for
STREENIDHI CREDIT CO- organising capacity building
OPERATIVE FEDERATION LTD. programmes with new training content
and improved methods. For managing

PSCNOTES.COM 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 Visakhapatnam, Guntur and

medicinal (Rs 7,020 crore) Anantapur

- Rs 49,154.96 crore have been - Establishment of Ghantasala

allotted for general administrations Musuem in Vijayawada, Bapu
Museum, Kakinada Andhra Sahitya
Parishad and Amaravati Heritage
- Rs 450 crore for Visakhapatnam, Center
Tirupati and Kakinada for
advancement as Smart Cities
- Establishment of eight uber
nourishment handling parks with open
- Rs 150 crore for 13 urban private parternship in Srikakulam,
communities announced as shrewd Vizianagaram, Visakhapatnam, East
urban areas by AP government Godavari, Chittoor, Kurnool and
Anantapur

- Rs 200 crore for Anna Canteens

- Development of Hope Island in
Kakinada, Konaseema and Nellore
drift as visitor spots
- Rs 500 crore for joblessness pay

- Establishment of AP Industrial
- Rs 1,061 crore for Capital Region
Development Corridor
Development Authority

- MSME Development Authority to be

- Rs 100 crore for fast roundabout
set up to advance MSME part.
sub-urban prepare venture between
Distribution of Rs 125 crore for
Vijayawada-Amaravati-Guntur-Tenali
resuscitating the inadequately
performing MSMEs

- Rs 1,600 crore towards capital

implantation for the improvement of
- Rs 97.69 crore for setting up
ladies and youngsters in country
Ambedkar Smriti Vanam in Amaravati
territories
denoting the 125th birth
commemoration festivities of BR
Amedkar this year.
- Establishment of maturity homes
with a limit of 100 in each at

PSCNOTES.COM Page 43
 Andhra Pradesh Economy

The Finance Minister of Andhra Then again, designation to the

Pradesh, Mr. Yanamala Department of Municipal
Ramakrishnudu, exhibited the Budget Administration and Urban
for Andhra Pradesh for monetary year Development saw a 22% diminishing
2017-18 on March 15, 2017. in assignment in 2017-18.

Spending Highlights Strategy Highlights

-18 is
assessed to be Rs 1,56,999 crore, a crore has been distributed for the
18.3% expansion over the changed Agriculture Debt Redemption
gauge of 2016-17. In 2016-17, there Scheme. In 2016-17, Rs 3,512 crore
was a reduction of Rs 2,925 crore was distributed to this plan.
(2.2%) in the changed gauge over the
spending gauge.

assigned to finance the arrangement

of power supply to poor people.
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, with a limit of 1,000 MW each are to
add up to receipts missed the mark be finished by 2018-19. What's more,
concerning the planned focus by Rs a breeze vitality limit of 5,000 MW will
2,859 crore. be accomplished by 2018-19.

following money related year is Pradesh Irrigation Livelihood

focused at Rs 416 crore. Monetary Improvement Project has been
deficiency is focused at Rs 23,054 proposed. It will cover the
crore. Essential deficiency is focused modernization of 20 Major and
at Rs 8,272 crore. Medium Irrigation ventures, and the
rebuilding of 445 minor water system
tanks.

(57%), Rural Development (27%),

and Health, Medical and Family
Welfare (22%) saw increments in proposed to be embraced in 2017-18
distributions for the year 2017-18. under the Affordable Housing

PSCNOTES.COM Page 44
 Andhra Pradesh Economy

Projects. Rs 1,457 crore has been Income shortfall: It is the abundance

apportioned for lodging under the of income use over income receipts.
Pradhan Mantri Awas Yojana (PMAY) An income shortage suggests that the
and NTR Rural Housing plans. administration needs to acquire to
fund its costs which don't make
capital resources. The Budget
Spending Estimates for 2017-18 evaluates an income shortage of Rs
416 crore in 2017-18.

2017-18 is focused at Rs 1,56,999 Financial deficiency: It is the

crore. The modified gauge for the overabundance of aggregate
aggregate consumption in 2016-17 consumption over aggregate receipts.
was Rs 1,32,764 crore, which is Rs This hole is filled by borrowings by
2,925 crore lower than the planned the administration, and prompts an
focus of 2016-17. expansion in all out liabilities of the
legislature. In 2017-18, financial
deficiency is assessed to be Rs
23,054 crore.
-18 is
proposed to be met through receipts
(other than borrowings) of Rs
1,26,968 crore and borrowings of Rs Extraordinary Liabilities: It is the
30,020 crore. Add up to receipts for aggregation of borrowings throughout
2017-18 (other than borrowings) are the years. In 2017-18, the remarkable
relied upon to be Rs 2,859 crore liabilities are normal at 28.1% of state
lower than the updated assessments GDP.
of 2016-17.

Note that the GSDP gauge for 2017-

Shortages, Debts and FRBM Targets 18 has not been given in the financial
for 2017-18 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
The Andhra Pradesh Fiscal
general population obligation as a %
Responsibility and Budget
of GSDP, as gave in the Budget in a
Management (FRBM) Act, 2005 gives
nutshell archive.
yearly focuses to dynamically lessen
the remarkable liabilities, income ANDHRA PRADESH : POWER
shortage and monetary deficiency of RESOURCES
the state government.
The availability of reliable, quality and
affordable power helps in the rapid
agriculture, industrial and overall
PSCNOTES.COM Page 45
 Andhra Pradesh Economy

economic development of the state. The 6,158 MW to 82,392 MU and 13,436 MW

total installed utility power generation respectively by FY 2018-19 due to:
capacity is nearly 20,000 MW in the state.
Only 11,400 MW is the committed power  Natural Load Growth.
supply to the state with power purchase  24x7 power supply to all
agreements. Rest of the capacity is consumers
exporting electricity mainly to Telangana  Increase in electrification of
state depending on fuel availability. households
Significant amount of investments were  Additional energy requirement for
made for building up generation capacity, upcoming capital city and
strengthening transmission and distribution associated investments.
network, industrial feeder segregation, loss  New Industrial corridors
reduction and improving quality of power Non renewable energy
supply.
Thermal power
Current situation of power supply in
Andhra pradesh Thermal power plants are based on the fuel
coal, gas, diesel etc. Public sector
power is being supplied to domestic, undertaking NTPC, state level power
commercial and industrial consumers generating companies and private firms are
along with agricultural consumers in rural engaged in this sector for power
areas through mixed feeders. There are generation. They contribute approx.
706 dedicated/express industrial feeders. 8,630MW capacity. Some important
Seven hours three phase power supply is thermal power plants of Andhra pradesh
being given to agricultural consumers are as follows :
mostly in single/two spells and supply
timings are rotated every 7 days. Rural
areas are given single phase domestic
Simhadri Super Thermal Power Plant :
lighting from 6 PM to 6 AM. Three phase
Parawada (Visakhapatnam), 2000 MW
supply to rural areas for domestic,
capacity
commercial and industrial consumers is
along with agricultural supply only. As a Dr Narla Tatarao TPS :
result, most of the consumers, other than Ibrahimpatnam (Krishna), 1760 MW
agricultural, in rural areas on mixed capacity
feeders get between 12 to16 hours of
supply every day, depending on Rayalaseema Thermal Power Station :
agricultural supply spell timings. Muddanur ( Kadapa),
Agricultural feeders have been separated 1050 MW capacity
from domestic feeders in fourteen mandals
Sri Damodaram Sanjeevaiah Power
on a pilot basis during in 2011.
Station Krishnapatna (Nellore)
The requirement of electricity i.e., both, 1600 MW capacity
energy and peak demand are expected to
increase significantly in Andhra Pradesh
from the present level of 43,684 MU &

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 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

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 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.

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 Andhra Pradesh Economy

Now we will see status of Andhra country. Extensive deposits occur in

Pradesh in various minerals Kadapa, Kurnool, Guntur.

Mica:

Andhra Pradesh is the largest mica Uranium

producing state of India.The mica
The Tummalapalle Mine is a
mining area lies in Nellore district
uranium mine in Tumalapalli village
and is 100 km long and 25 km wide.
located in Kadapa of the Indian state
Nellore mica is generally light green of Andhra Pradesh. Results from a
in colour; it is generally stained and research conducted by the Atomic
spotted. The other districts with Energy Commission of India in
workable mica deposits are 2011 made the analysts conclude
Vishakhapatnam, West Godavari. that this mine might have one of the
Shah mine in Gudur taluka is the largest reserves of uranium in the
deepest with mining being done at world.
300 m depth.

The state production of Mica is

Asbestos:
almost 72 per cent of all India
production. In the recent years, share Andhra Pradesh is the largest
of Andhra Pradesh has increased in producer of Asbestos in India.
respect to mica production. Kadapa district of Andhra Pradesh
have Asbestos mines.

Limestone

In the below table we can see total

Andhra Pradesh possesses about
reserves of minerals inAndhra
one-third of the total reserves of the
Pradesh:
cement grade limestone in the

Mineral Unit Total Resources

Apatite Tonnes 237860

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 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

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 Andhra Pradesh Economy

Quartz & Silica '000

209031
Sand Tonnes

'000
Quartzite 23583
Tonnes

000
Shale 15911
Tonnes

Sillimanite Tonnes 9644500

Vermiculite Tonnes 354176

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