Recent Developments in Key Sectors

• As per budget estimates 2023-24:
  • Education: Andhra Pradesh has allocated 12.6% of its expenditure on education in 2023-24. This is lower than the average allocation for education by states in 2022-23 (14.8%).
  • Roads and bridges: Andhra Pradesh has allocated 1.8% of its total expenditure towards roads and bridges, which is lower than the average allocation for roads and bridges by states (4.5%).
  • Urban Development: Andhra Pradesh has allocated 3.5% of its expenditure on urban development. This is the same as the average allocation for urban development by states (3.5%).
  • Welfare of SC, ST and OBC: Andhra Pradesh has allocated 19.8% of its expenditure towards the welfare of SCs, STs, and OBCs. This is significantly higher than the average allocation by states (3.5%).
  • Energy: Andhra Pradesh has allocated 2.1% of its total expenditure towards energy, which is lower than the average expenditure on energy by states (4.8%).
  • Police: Andhra Pradesh has allocated 2.9% of its total expenditure towards police, which is lower than the average allocation by states (4.3%).
• As per the Budget 2022-23:
  • In phase III of the Nadu-Nedu program, the infrastructure in 24,620 schools (such as furniture, fans, lights, and drinking water) will be upgraded.
  • Rs. 13,640 crore (US$ 1.78 billion) was allocated for agriculture and allied activities.
  • Allocation of Rs. 8,597 crore (US$ 1.12 billion) as capital expenditure on transport. Out of this, Rs. 2,173 crore (US$ 284.54 million) has been allocated for roads and bridges.
  • The State Government has set aside Rs. 8,495 crore (US$ 1.11 billion) for urban development in 2022-23. Out of this, Rs. 1,000 crore (US$ 131.13 million) has been allocated towards the Smart Cities Mission, while Rs. 800 crore (US$ 104.9 million) has been allocated for the creation of essential infrastructure for the new capital city.
  • The State Government announced plans to invest Rs. 9,451 crore (US$ 1.24 billion) to develop the state’s energy sector.
  • Allocation of Rs. 15,708 crore (US$ 2.06 billion) for health and family welfare. Out of this, Rs. 2,462 crore (US$ 322.85 million) has been allocated towards the National Health Mission, and Rs. 1,009 crore (US$ 132.31 million) has been allocated for Primary Health Centres (PHCs).
  • Rs. 30,385 crore (US$ 3.97 billion) has been allocated for education, sports, arts and culture. Out of this, Rs. 8,015 crore (US$ 1.05 billion) has been allocated towards teaching grants to Mandal Praja Parishads, and Rs. 2,136 crore (US$ 280.1 million) has been allocated towards the Samagra Shiksha Abhiyan.
  • The Andhra Pradesh government set aside Rs. 2,755.17 crore (US$ 361.1 million) for industrial and infrastructure development.
• In September 2022, Minister for Road Transport and Highways, Mr. Nitin Gadkari, laid the foundation stones for eight National Highway Projects worth Rs. 3,000 crore (US$ 367.45 million) in Rajamahendravaram, Andhra Pradesh.
• The total R&B road network (excluding NH roads) in the state as on December 2022 was 45,321 kms, comprising 12,595.60 kms of state highways, and 26,485.51 kms of major district road and rural roads.
• Under AP Mandal Connectivity and Rural Connectivity Improvement project (APMCRCIP), government proposed to improve roads and & bridges of major district roads/other district roads for a length of 728.59 km with Rs.1987.60 crore (US$ 239 million).
• Under Major District Roads (MDR) 31 road works with a length of 174.77 km and 5 bridge works have been completed for an amount of Rs. 355.77 crore (US$ 42.8 million).
• The "Russian Education Fair 2022" was held on September 14, 15, and 16 in Visakhapatnam, Vijayawada, and Nellore, respectively, by the Russian Centre of Science and Culture (Cultural Department of the Russian Consulate in South India). This fair was conducted to help Indian students pursue UG and PG in medicine in Russia.
• Andhra Pradesh is home to many global and national pharma players, and various companies have set up their manufacturing hubs in different cities of the state. Pharmaceutical exports from the state stood at US$ 863.72 million in FY22.
  • Hyderabad has become one of the preferred destinations for global pharma biotech investments and has attracted around Rs. 7,500 crore (US$ 983.52 million) of investments in FY22, which is expected to result in employment for about 35,000 people.
  • Under the Ayushman Bharat Digital Mission (ABDM), Andhra Pradesh has become the first state in the nation to connect the electronic health records of one crore people to the central database.
• Traffic handled by the Visakhapatnam port reached 61.63 million tonnes in FY23.
• In March 2022, Arcelor Mittal announced a renewable energy partnership with Greenko Group with an investment of US$ 600 million to own and fund a 975 MW renewable energy project in Andhra Pradesh.
• The Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) is preparing to offer all of its services online in the near future. This will minimise the necessity for in-person meetings between the concerned entrepreneurs and officers. Additionally, it is creating a mobile application to make the services accessible on the go.
• In 2021, 7107 Micro, Small and Medium enterprises (MSMEs) were established in Andhra Pradesh, with an investment of Rs. 2,099 crore (US$ 275.25 million), providing employment to 46,811 people.
• In December 2021, Union Minister for Road Transport and Highways Mr. Nitin Gadkari inaugurated and laid the foundation stone for 41 road projects in Andhra Pradesh for a length of 1,048 km, to be completed at an estimated cost of Rs. 16,826 crore (US$ 2.2 billion).
• In August 2021, a new N5 taxiway and six parking bays were made operational at the Visakhapatnam Airport. The taxiway increased operational capacity by allowing 12 aircraft movements per hour instead of the current nine and the parking bays allowed aircraft to be parked overnight.
• In July 2021, Indian Railways announced 33 projects in Andhra Pradesh that consist of 16 projects of new railway lines, while the remaining 17 projects were for doubling of the existing lines. These projects would cost Rs. 62,801 crore (US$ 8.45 billion) and cover 5,706 kms in the state.
• In April 2021, the government announced that it would covert 10 major state highways in Andhra Pradesh into national highways at a cost of Rs. 8,000 crore (US$ 1.09 billion).
• In February 2021, Finance Minister Ms. Nirmala Sitharaman announced commencement of the Nadikudi-Srikalahasti railway project. The Central government spared Rs. 1,144 crore (US$ 154.2 million) to fast-track the project.
• In February 2021, Union Minister for Road Transport and Highways, Mr. Nitin Gadkari, approved a proposal to construct a six-lane Kantakapalle-Sabbavaram section of NH 130CD worth Rs. 824.29 crore (US$ 111.1 million) and the development of a six-lane Korlam-Kantakapalle section of NH 130CD worth Rs. 772.70 crore (US$ 104.2 million). In addition, approval was also provided for widening and strengthening the four-lanes of urban link of NH-42 in Ananthapur town worth Rs. 311.93 Crore (US$ 42.1 million).
• The government plans to develop a greenfield port at Ramayapatnam in the state to meet the ever-increasing cargo demand under the landlord model with artificial deep harbour along an open straight seacoast, protected by breakwaters. The estimated cost for phase I is Rs. 3,736 crore (US$ 530 million).
• In July 2021, United Telelinks Neolyncs, the manufacturer of Karbon mobile phones and other electronic devices, announced an investment of Rs. 2,150 crore (US$ 290.82 million) in Andhra Pradesh. This investment generated direct employment for 6,000 people and indirect employment for 15,000-20,000 people.
• The presence of rich climatic and soil conditions makes Andhra Pradesh a major agricultural belt. Few of the leading crops produced in the state include rice, chilly, oilseeds, cotton, pulses, and grams.
  • 77 agri testing labs were operationalised from the Kharif 2022 season to address the problem of spurious seeds, fertilisers, and pesticides.
  • The cost of installing electricity meters for agricultural pump sets would be borne by the state government.
  • 52.38 lakh farmers received Rs. 7,016 crore (US$ 920 million) in financial assistance under the Rythu Bharosa scheme in 2021-22.
• Andhra Pradesh is home to a thriving fisheries industry and employs about 1.45 million people and contributes a major proportion to the total value of sea food export from the country.
  • In FY22, marine products exports from the state stood at about US$ 3.09 billion.
  • Andhra Pradesh is one of the largest producers of brackish water shrimps and freshwater prawns.
  • In August 2021, Adani Ports announced that the proposal to acquire a 10.4% share in the Gangavaram Port (GPL) has been approved by the Andhra Pradesh government. The proposed acquisition will cost Rs. 644.78 crore (US$ 86.98 million).
  • In September 2021, the Adani group announced it had completed the acquisition of Gangavaram port in the Visakhapatnam district of Andhra Pradesh for a total of Rs 6,200 crore (US$ 744.5 million).
• According to the Director General of Hydrocarbons (DGH), Andhra Pradesh has huge oil and natural gas reserves. Production of crude oil and natural gas in the state was recorded at 216.51 thousand metric tonnes and 847 million cubic metres (MCM) during 2019-20, respectively. The state’s Krishna-Godavari basin, spread over an area of nearly 52,000 sq. kms, has a total hydrocarbon resource base of 1,130 million metric tonnes. To promote investment in the industry, the Andhra Pradesh Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) is being set up.
  • In July 2021, the Central Government agreed to establish a petrochemical corridor with an outlay of Rs. 25,000 crore (US$ 3.27 billion) in Andhra Pradesh.
• In August 2021, Reliance Industries Limited (RIL) announced an increase in its PET recycling capacity by establishing a recycled polyester staple fibre (PSF) manufacturing facility near the Krishnapatnam Port in Andhra Pradesh's Nellore district.