Andhra Pradesh’s new IT policy has been in the waiting for quite some time now. The new policy was supposed to get released last year but with the COVID-19 pandemic causing significant disruptions the policy’s release got postponed.
However as per sources the final draft of the policy is now ready and if all goes as per plan it might well be released soon.
IT companies including investors have been looking forward to the state’s vision and plan on IT which they say will help them better chalk out further expansion and investment decisions.
AP’s IT industry is still very nascent when compared to some of its other southern counterpart states like Telanagana, Karnataka and Tamil Nadu.
As per industry insiders Andhra’s ITES/IT industry employs close to 35000 people out of which Vizag alone accounts for 25000 people that directly work in the ITES/IT industry.
While in terms of exports the state does about Rs2500 crores which is miniscule compared to Telanagna’s whopping Rs 1 lakh crores in IT/ITES exports.
‘There is a huge opportunity for the state to ramp up its IT industry by bringing in aggressive policies that could truly elevate the state as one of the top IT destinations in the country’ stated Mr Sreedhar Kosaraju, president of ITAAP.
“An aggressive IT policy could truly elevate the state as one of the top IT destinations”
Mr. Sreedhar Kosaraju
The state’s regional IT industry body, ITAAP has been in constant touch with the government and has been providing them with inputs towards the new policy.
‘ITAAP has a great working relationship with the government officials in the IT department and we freely express our thoughts and inputs to them’ informed Mr Sreedhar.
Andhra Pradesh has predominantly been dominated in the ITES sector which industry leaders opine needs to shift and the focus needs to be more on product companies in order for the state to become a powerhouse in this sector.
‘We have to rope in big companies that are on the product development side. If one big company comes and employs about 3000 developers you will see the eco-system dramatically change here’ said Mr Srini Sandaka, CTO Mouri Tech.
“We need to rope in big product Cos that can employ thousands of developers”
Mr. Srini Sandaka
CTO Mouri Tech.
He says that even though Andhra Pradesh is doing a commendable job in skill training most of our talent exodus to bigger cities.
‘Majority of the people working in the IT sector in Hyderabad and Bengaluru are from the Andhra region’ highlighted Mr Srini.
Release of IT incentives
One of the other issues that has been bogging down the industry is the release of IT incentives which has been pending since the previous government’s tenure.
It is estimated that an amount of Rs 100 crores is pending to be released in incentives to the IT industry here.
‘I am happy to inform you that Rs 45 crores of this has already been approved by the highest authorities and is now just awaiting disbursal of funds’ cited Mr Sreedhar.
On the remaining Rs 55 crores it is informed that it is in various phases of clearance and the industry hopes for both its clearance and disbursal.
All in all the IT fraternity is looking forward to the quick release of the policy which they hope will boost prospects of more IT investments while giving a fresh burst of energy to the sector.