ANDHRA PRADESH-AN IDEAL DESTINATION FOR INVESTMENTS
AP is the largest state in
the southern peninsular region of India, with an area of 2,75,100 sq
kms and a coast line of 974 kms. Based on the physical features, the state is
divided into three regions - Eastern hills, the coastal plains and peninsular
plateau. Vamsadhara, Nagavali, Godavari, Krishna
and Pennar and are the major rivers
flowing through the state. The state has 23 districts, with 9 districts in the
coastal area, 10 districts in the Telangana area, and 4 districts in the
Rayalseema region. Hyderabad
is the State capital. Total population of Andhra Pradesh as per 2011 census is
84,665,533 of which male and female are 42,509,881 and 42,155,652 respectively.
In 2001, total population was 76,210,007 in which males were 38,527,413 while
females were 37,682,594. The literacy rate is 67.66 compared to 60.47 of 2001
census.
RESOURCES
Andhra Pradesh is endowed
with many natural resources, good human resources, and a climate congenial for
agriculture and industrial production. The state is a leading producer of paddy
and other crops like tobacco, cotton, sugarcane, pulses and horticulture
produce. The state is the second largest producer of Horticulture products in
the country. Major fruits produced in the state are Mangoes, grapes, pineapple,
banana and guava. Coconut is another major capital crop in the state. Apart
from these, the state is a major contributor in the production of spices like chilies,
turmeric, ginger, coriander, etc.
The state shares about
14.5% in rice production of the country. AP is the largest maize producer, with
19.09% share of the country’s production as per the data of 2007-08. The state
ranks 3rd in the country in pulses production with 11.52% share, 5th
in total oilseeds production with11.39% share(second in sunflower seeds
production) with 30.14 share and 3rdin cotton production after
Gujarat and Maharashtra, with 13.49%share. AP ranks 1st in oil palm cultivation
with 80.5% share. The state has a share of 36% in total tobacco production in
the country, and ranks first. AP also enjoys a share of 60% in turmeric production.
Andhra Pradesh is the leading producer of chilies. It also ranks amongst the
top few states in production of fruits like mango, grapes, pineapple, cucumber
etc. Floriculture is also an upcoming industry that offers immense scope, especially
in the export market.
Andhra Pradesh is the
leading producer of barites, mica, coal, bauxite, lime, granite etc. The state
produces about 10 million tones of industrial minerals. Vast reserves of
natural gas are found in the Krishna-Godavari basin with 62 million standard
cubic meters per day being exploited already. This has opened up a plethora of
industrial opportunities.
The state has a total forest
cover of 23% of the geographical area. Around 45% of the cover falls in the
Telangana region, while around 30% falls in the coastal region and 25% in
Rayalaseema region. The major forest produces in the State are Timber, fire
wood & charcoal and Minor forest produce include bamboo, Tendu/Beedi
leaves, soap nuts, red sanders wood, seeds, medicinal plants etc. Plantation products like
cashew, teak, coffee and pepper are also grown.
As far as live stock is
concerned the state has 20.56% of the country’s poultry population. It is also the
leading producer of poultry and eggs. It contributes to around 33% of eggs and
18 % of broiler meat to the country. AP has a rich livestock population, and is
a major producer of hides and skins (10% of the country’s total production).
Having a long coastline, AP is also a leading producer of marine food products.
Every year, the state
produces more than 85,000 engineers, post graduates in computers and other
fields, and management disciplines. These young professionals have made their
good presence in the global IT industry. The state houses a number of
Engineering colleges and B-schools. However these graduates need industry
oriented trainings to make them suitable for the local industrial sector.
INDUSTRIAL
SENERIO
Micro,
Small and Medium Enterprises have been recognized as one of the key sector for
employment generation and overall economic development of our country. The
Micro, Small and Medium Enterprises development Act, 2006, was enacted to
expand focus to the entire gamut of micro, small and medium enterprises (MSMEs)
both in manufacturing and service sectors. This sector now provides employment
to nearly 60 million persons and accounts for nearly 45 % of India’s
manufacturing output.
The
micro and small scale sector in Andhra Pradesh has seen a phenomenal growth
during the last four decades. The number of units in AP in this sector, during
1956 was just 6195, while the corresponding figures in 2009 the total number of MSEs in the State stands
at 1, 58,173, according to Commissioner of Industries, GoAP data. The number of
small scale industries has grown 20 fold during the 40 years from 1956. A
corresponding increase in investment made and employment provided by the sector
is also seen. However, an interesting trend in the investment and employment by
the sector is that the average investment per unit in this sector has been
rising, whereas, the average employment provided by the sector has been coming
down. The major reason that can be attributed to this trend is the advent of
new technologies and consequent increase in production.
Andhra
Pradesh has a prominent role in the industrial sector. The major concentrations
of industrial and business activities are Hyderabad,
Medak, Ranga Raddy, Krishna, West Godavary and
Visakhapatnem districts. There are 600 large scale industries in the state
spread across the length and breadth. Major public sector undertakings are however concentrated
in and around Hyderabad and Visakhapatnam , thus making the major
agglomeration of industries. The micro, small and medium enterprises are also
more or less confined to these areas as ancillaries to the public sector
enterprises. In addition resource based enterprises grown in clusters at
various locations based on local raw materials and skills. The DC (MSME) did
some interventions in 20 clusters in the state.
The
Drugs & Pharmaceutical sector is another area which made this state as the
Pharma Hub of the country. The sector has its concentration in Hyderabad, Madak, Ranga Reddy and srikakulam
distts. The recent addition being an industrial park at Visakhapatnam
The gross State domestic product (GSDP) is Rs. 1,
17,434 crores with a contribution of Rs.16, 350 crores from manufacturing
sector which comes to 13%. The per capita income is Rs.13, 135
Andhra Pradesh has the
largest number (73) of Notified SEZs. These include IT & ES SEZs in and
around Hyderabad.
FURTHER PROSPECTS
The
state Govt. identified the following growth sectors for setting up of
Manufacturing and service enterprises.
- Automobiles and Auto Components
- Biotechnology
- Bulk Drugs and Pharmaceuticals
- Food and Agro based
- Information Technology
- Mines and Minerals
- Textiles and Leather
- Tourism
Industrial
growth in the state is not widespread compared to the states like Tamil Nadu, Gujarath
and Maharashtra. It has confined to market oriented
growth in the areas where PSU are established as there is market assurance. The
others are like clusters based on the local raw materials and skills. This
trend has to be changed by creating industrial corridors at various places within
the state where agglomerations of Large, Medium, Small and Micro enterprises
are promoted with their due representations.
It
is a known fact that Andhra Pradesh is rich with natural resources and is not
fully exploited, to add value by establishing enterprises. This may be due to some
of the reasons like inadequate specialized training facilities, lack of skilled
management, lack of market information including export markets, lack of
awareness in IPRs and low exposure to ICT. The MSEs can not afford to have
these facilities due to financial resource crunch. Hence there is need for
awareness programs to attract entrepreneurs. Merely giving generalized
Entrepreneurs Development Trainings organized by various Institutions will not
meet this goal. The focus of all trainings should be towards nurturing the Entrepreneur
in the specialized fields, based on the resources available in the identified
regions. To achieve these goals there is need for establishing industry
facilitation centers which can practically guide and assist the entrepreneurs
in these areas.
In
order to achieve these, following measures at all levels may have to be taken both
by entrepreneurs and development agencies including financial institutions.
ENTREPRENUERS
- Entrepreneurs should try to utilize full of resources and installed capacity by strategic planning and look for innovative processes.
- Conduct market research in their related business for exact demand forecasting.
- Understand export procedures for export of their products in international markets.
- Get exposure to the applicability and use of ICT and equipment's for setting of identified industries based upon local and export markets.
- Upgrade managerial skills and knowledge on prospective markets.
- Get IPR awareness through WEB or through development institutions
- Improve ICT skills and Quality management practices through such trainings
PROMOTION & DEVELOPENT AGENCIES:
The promotion and sustained growth of MSME Sector is achieved well by coordinated
efforts of the following agencies.
a) Central Government
b) State Government
c) Technology Providing
Agencies including IPRs
d) Training & Consultancy Organizations
e) Financial Institutions
f) Industry Associations and
g) Engineering & Management
education Institutions/ Universities
The Tasks are to be taken by different
organizations are broadly identified below
- The Ministry of SMEs should provide more comprehensive marketing support for India's SMEs. The Govt. procurements should be made mandatory to the the prescribes limit as per the MSMED Act2006.
- State Government should establish Industrial estates/parks specially for MSE Sector at a suitable location in each districts and provide adequate Infrastructure Facilities .
- Organize vendor development programs at different locations in the state to establish linkages between micro, small, medium and large industry.
- Encourage MSME promotion through public-private partnerships in the areas of creation of training facilities, technology upgrading centers, research and testing labs, IPRs, etc.
- Identify of new technologies suitable for MSEs and facilitate acquisition of such technologies.
- Organize SME Product Exhibitions at different locations preferably on permanent display modes.
- Facilitate flow of credit to MSE sector from institutional sources at par with agriculture loans.
- The government should give all possible help to encourage SMEs to focus on innovation and technology development.
- Level playing at par with the organized sector, in all aspects like preferential treatment for land, finance and other facilities.
- Education institutions/ Universities should introduce specialized tailor made programs, both short and long duration to produce manpower according to the needs of the Industry.
CONCLISION
Promotion and development of Enterprises need sincere efforts by
all concerned. The Entrepreneur should develop close liaison with all
development agencies and should possess good leadership qualities. It is the
Entrepreneur and the team will have the ultimate responsibility as he/she only
enjoys the fruits of the enterprise. As a leader he/she has to lead the team in a coordinated manner to achieve the
desired goal.