Why in News?
Andhra Pradesh launched its new ‘AP Information Technology 2021-24’ on June 30, 2021.
About the Policy
- A robust and holistic business environment would be created and the IT, Electronics and Communications Department would be transformed into a revenue center to achieve self-sustenance.
- The new IT policy is expected to generate more than 55,000 direct jobs and around 1.65 lakh indirect employment thereby ensuring a holistic eco system development.
- The AP government shall grant fiscal incentives (relating to stamp duty, investment subsidies, loan interest subsidies, rebates in land cost and SGST reimbursements) to socially disadvantaged groups.
- The new IT policy offers end-to end support for start-ups like plug & play office space, access to investors & mentors, funds through venture capitals and private equity firms.
- The policy would remain in force till March 31, 2024.
Measures for Ease of Doing Business
- The transparency measures undertaken includes the ‘deemed approval’ granted to all green and white category industries (classifications based on environmental impact). Such industries would be able to commence activities and formalize their approvals within 3 years.
- Creation of a robust, single desk portal for all necessary approvals and clearances from multiple government agencies and departments and a central helpline for approvals related grievances.
- The government proposes to set up a support centre called “YSR AP One” to provide one stop shop support entrepreneurs including support regarding business model, market research, branding sales, etc.
Implementation of the Policy
- The state government will establish incubation centers and organize hackathons & workshops for startups, IT Emerging Technologies Research University in Vishakhapatnam in order to develop state as a leading contributor to national talent pool in IT & other emerging technologies.
India has faced significant economic slowdown due to the ongoing COVID-19 pandemic. The measures announced by the AP Government are welcome efforts for being investor friendly. It will streamline approvals and clearances at a faster pace.
In the ease of doing business ranking (State Business Reform Action Plan Ranking), released by commerce and industry ministry in September 2020, Andhra Pradesh retained its top position.
The governments (either central or states) must ensure environmental sustainability and mitigate damage as far as possible. The logistics availability and good connectivity already available in Andhra Pradesh will surely help implement new IT policy.