On Monday, the Andhra Pradesh government has released its AP Innovation & Startup Policy (4.0) during 2024-2029, with an aim to create 20,000 new startups within the next five years, creating a minimum of one lakh jobs. The policy also has the objective of promoting the formation of 20 Soonicorns and 10 Unicorns, as well as the growth or establishment of 10 Centers of Excellence in domains like Deeptech, blockchain, decentralized systems, Extended Reality (XR), virtual reality, augmented reality, Internet of Things, quantum computing, climate technology, healthtech, biotech, life sciences, MedTech, advanced manufacturing (including 3D printing, robotics, and nanotechnology), automotive, cybersecurity, and cloud computing. Government Order (G.O.) was issued by Katamneni Bhaskar, Secretary of IT, Electronics, and Communications.
The policy emphasizes that Andhra Pradesh has always been a leader in innovation, borrowing from the best practices both from the country and the world to create an energetic startup culture.
In 2014, Andhra Pradesh made a national first by launching India’s first Startup and Innovation Policy, followed by the A.P. Information Technology Policy (2021-2024), which provided several incentives and assistance to startups. This earlier policy is to lapse on September 30, 2024. The new policy confronts emerging challenges and captures opportunities emerging from technology developments, market forces, and evolving needs of startup entrepreneurs.
As of December 2024, the Department for Promotion of Industry and Internal Trade (DPIIT) has approved 1.5 lakh startups in India, with a 120% CAGR in startup growth since 2015. Almost 50% of the startups are from Tier-2 and Tier-3 cities. Andhra Pradesh has fostered 6,600 startups in the last five years, out of which 2,400 are DPIIT-registered. In the 2022 State Startup Ranking, Andhra Pradesh was also declared a “leader,” solidifying the state’s commitment to developing a strong startup ecosystem. Siliconindia