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Andhra Pradesh Information Technology & Global Capability Centers (GCC) Policy (4.0) 2024-2029: A State’s Vision for the Digital Economy
Andhra Pradesh Information Technology & Global Capability Centers (GCC) Policy (4.0) 2024-2029: A State’s Vision for the Digital Economy

February 7, 2025

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Introduction

The Government of Andhra Pradesh (GoAP) has unveiled its ambitious Andhra Pradesh IT & Global Capability Centers (GCC) Policy (4.0) 2024–2029, a forward-looking initiative aimed at revolutionizing the state’s digital economy. This policy seeks to position Andhra Pradesh as a premier global destination for IT and GCC firms, leveraging its skilled workforce, cost advantages, and strategic location. It is a pivotal step in bridging infrastructure gaps, fostering employment, and cultivating an innovation-driven knowledge economy.

The policy envisions the transformation of Andhra Pradesh into a global IT and GCC powerhouse through a structured approach to infrastructure development, financial incentives, and human capital enhancement. It aligns with the state’s broader economic aspirations under the Swarna Andhra Vision 2047 and aims to establish Andhra Pradesh as a hub for global technology investments, hybrid workspaces, and IT-led economic growth.

Salient Features of the Policy

1. Vision and Objectives

The policy lays a robust foundation to drive the digital and knowledge economy in Andhra Pradesh with the following key objectives:

  • Attract Global IT Giants: Foster an environment conducive to the entry of Fortune 500 technology firms.
  • Encourage Hybrid & Remote Work Models: Develop co-working and neighborhood workspaces, enabling global employment from within the state.
  • Enhance Human Capital: Strengthen skill development programs to align the workforce with emerging technology trends.
  • Boost IT Infrastructure: Establish large-scale IT hubs, digital corridors, and high-quality office spaces.
  • Promote Innovation & Startups: Set up dedicated hubs such as the Ratan Tata Innovation Hub (RTIH) to nurture local entrepreneurial talent.

2. Infrastructure Development & Digital Readiness

Recognizing infrastructure as a critical enabler of IT growth, the policy focuses on:

  • Large IT Spaces and Hubs: Development of IT parks, co-working spaces, and neighborhood workspaces across the state.
  • Strategic Focus on Visakhapatnam: The city is set to emerge as a global IT hub with cutting-edge digital infrastructure, superior connectivity, and industry-friendly incentives.
  • Digital Infrastructure & Cybersecurity: Investment in high-speed internet, secure IT environments, and cloud-based services.
  • Mixed-Use Development: Allocation of government buildings and underutilized spaces for IT and GCC activities.

3. Employment & Human Capital Development

The policy is a game-changer for job creation and talent retention. Key initiatives include:

  • Large-Scale Job Creation: Direct and indirect employment across IT and GCC firms, targeting millions of jobs.
  • Skill Enhancement & Upskilling: Implementation of the Future Skills Credit Scheme to support lifelong learning in AI, cybersecurity, cloud computing, and data analytics.
  • Gig Economy & Remote Work Facilitation: Encouraging flexible work models that cater to the evolving global workforce.
  • Focus on Women, Backward Classes, and Marginalized Communities: Special incentives for women, SC/ST, and transgender employees to promote inclusivity.

4. Financial & Non-Financial Incentives

The policy provides substantial financial support for IT firms, GCCs, and infrastructure developers:

For IT & GCC Firms

  • Land Allocation: Priority allotment of land for IT campuses and workspaces.
  • Employment Subsidies:
    • Up to ₹1.5 lakh for hiring AP domicile graduates.
    • Up to ₹3 lakhs for hiring talent from top-ranked institutions.
    • 100% EPF subsidy for marginalized groups.
  • Rental Subsidies: ₹2,000 per seat for 24 months.
  • Power Incentives: Industrial tariff with ₹1/unit discount for five years.
  • Employee Welfare Benefits: Housing and education allowances up to ₹1 lakh per employee for three years.

For Infrastructure Developers

  • Co-working Spaces:
    • 50% capital subsidy (up to ₹2,000 per sq. ft.).
    • Rental assistance for up to one year.
    • Free government building rentals for five years.
  • Neighborhood Workspaces:
    • 50% capital subsidy (up to ₹1,000 per sq. ft.).
    • Rental incentives for workspace operators.
  • IT Campus Development:
    • Subsidized land allocation.
    • Capital support of ₹2,000 per sq. ft.
    • Industrial tariff for power and streamlined approvals.

5. Hybrid & Remote Work: A Paradigm Shift

Recognizing the global shift towards flexible work environments, the policy actively supports:

  • Hybrid & Remote Work Models: Establishing neighborhood workspaces to allow professionals to work from their home regions.
  • Co-Working Ecosystem: Encouraging both multinational firms and startups to adopt flexible office solutions.
  • Tech-Driven Collaboration: Investments in high-quality digital workspaces equipped with AI, cloud computing, and cybersecurity measures.

6. Innovation & Startup Ecosystem

To fuel the next generation of entrepreneurs, Andhra Pradesh is launching:

  • Ratan Tata Innovation Hub (RTIH): A hub-and-spoke model to incubate startups and accelerate product development.
  • Government-Startup Collaboration: Startups will be engaged to build AI-driven solutions for governance challenges.
  • Tech-Driven Public Service Enhancements: Leveraging AI, deep tech, drones, and IoT for governance.

7. Governance & Policy Implementation

To ensure effective implementation, the government has established:

  • State Investment Promotion Board (SIPB): Headed by the Chief Minister to drive major investments.
  • State Investment Promotion Committee (SIPC): An advisory body to recommend policy modifications.
  • Consultative Committee for IT & Electronics Investments (CCITEI): A joint government-industry body to fast-track approvals.
  • Transparent Operational Guidelines: Clear regulatory procedures for accessing incentives and subsidies.

Merits of the Policy

The Andhra Pradesh IT & GCC Policy (4.0) 2024–2029 is a landmark initiative with wide-ranging benefits:

1. Economic Growth & Global Investment

  • Encourages Fortune 500 IT firms to establish operations in the state.
  • Creates a sustainable knowledge economy with long-term job opportunities.
  • Positions Andhra Pradesh as India’s emerging IT powerhouse.

2. Employment Generation & Skill Development

  • Targets millions of direct and indirect jobs across IT and GCC sectors.
  • Equips the workforce with next-gen technology skills, enhancing employability.
  • Supports hybrid and remote work, making Andhra Pradesh a leader in future work models.

3. Infrastructure & Digital Transformation

  • Develops world-class IT campuses and workspaces to attract top-tier firms.
  • Strengthens digital infrastructure, including high-speed internet and cybersecurity frameworks.
  • Facilitates cost-effective operations through land and power incentives.

4. Inclusive & Sustainable Development

  • Special incentives for women, marginalized communities, and underrepresented groups.
  • Promotes environmentally sustainable digital growth.
  • Reduces regional disparities by expanding IT services beyond urban centers.

5. Startup & Innovation Culture

  • Establishes the Ratan Tata Innovation Hub (RTIH) to incubate high-growth startups.
  • Encourages AI, deep tech, and cutting-edge R&D to solve governance challenges.
  • Bridges the gap between academia and industry through public-private partnerships.

 

Conclusion: A Global Vision for Andhra Pradesh

The Andhra Pradesh IT & GCC Policy (4.0) 2024–2029 is a bold and visionary roadmap that sets the stage for the state's transformation into a global IT hub. With a clear emphasis on talent development, innovation, infrastructure, and investor-friendly policies, Andhra Pradesh is poised to lead India’s digital revolution.

By leveraging its human capital, fostering global partnerships, and embracing new work paradigms, Andhra Pradesh is set to emerge as a global powerhouse for IT and GCC investments—one that offers world-class infrastructure, unparalleled talent, and an ecosystem of continuous innovation.


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