The Andhra Pradesh government plans to introduce a new industrial policy that will try to attract companies through transparency, commitment and honesty rather than incentives, following an international diplomatic outreach programme held in the state. Industries and IT Minister Mekapati Goutham Reddy said in Amaravathi that incentives would soon be withdrawn because they weigh heavily on a state running a large revenue deficit.

What the minister said

Goutham Reddy said the government would not offer incentives the way its predecessor did. He said the previous government had committed incentives worth Rs 2,500 crore over five years but had not paid them, and that the current government was ready to clear those dues soon. The new policy is planned from December 2019 and will address all industry-related questions, including a 75 percent quota for local people in industrial jobs, he said.

The diplomatic outreach

The state hosted the outreach programme on August 9, 2019 to draw foreign investment, with delegates and envoys from 35 countries taking part. Chief Minister Jagan Mohan Reddy met each delegate individually. After hearing from diplomats and trade representatives, the government decided on a policy built on transparency and commitment instead of incentives. The Chief Minister also intends to include the local jobs quota, which he promised during the election campaign.

Opposition criticism

The Telugu Desam Party has attacked the government over the policy, alleging that industries are pulling out of the state because of it.

Background

In the 2019 Andhra Pradesh assembly election, the YSR Congress Party won 151 seats and the Telugu Desam Party 23, and Y. S. Jagan Mohan Reddy became Chief Minister.

See also: YSR Congress Party and Telugu Desam Party.

Originally published on 21 August 2019. Rewritten on 9 October 2026.

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