The Hindu Business Line : Investments into AP double in last two years

Luring investors
Total investments in 2004-05 and 2005-06 amounted to Rs 4,844 crore with an average investment of Rs 2,422 crore per year.
Investment in IT sector goes up to Rs 9,697 crore with an employment potential of 80,975 in the last two years.

Hyderabad , April 2

The investments into Andhra Pradesh have almost doubled in the last two years compared to previous five years in annualised terms.

According to a Chief Minister's Office press release, the total investments in 2004-05 and 2005-06 amounted to Rs 4,844 crore with an average investment of Rs 2,422 crore per year.

This represents a sizeable growth over the five-year period from 1999 to 2004 which attracted investments of only Rs 7,251 crore, averaging Rs 1,450 crore per annum.

The Chief Minister, Dr Y.S. Rajasekhara Reddy, said the investments in the information technology sector during 1997-2004 was Rs 3,533 crore with an employment potential of 85,945, while during his tenure of last two years the investments improved to Rs 9,697 crore with an employment potential of 80,975.

Disclosing these details here on Sunday ahead of his visit to Bangalore, the Chief Minister hoped that the State would emerge as one of the prime investment destinations in the country.

Dr Reddy said he would woo investments at a high-profile interactive session with more than 50 CEOs of IT, semi-conductors and textile Industries at Hotel Taj West at Bangalore on Monday.

It was only due to quick and timely decisions and proactive steps initiated by the State Government that major domestic and global corporate houses such as Google, Amazon and Verizon have recently come to Andhra Pradesh with huge investments.

According to Dr Reddy, Andhra Pradesh currently stands third among the top 10 industrialised States in the country with an investment of Rs 75,391 crore after Maharashtra (Rs 1,02,432 crore) and Gujarat (Rs 78,696 crore) as per the January 2006 figures of Centre for Monitoring Indian Economy (CMIE).

Dr Reddy said the State aims to achieve Rs 69,000 crore of exports with the help of fast growing IT sector by 2009 and create employment for 3 lakh persons directly.

The State has achieved an enviable 64.5 per cent growth in software exports during 2004-05, far above of the national average of 35 per cent.

The IT sector topped in earning export revenues with a contribution of Rs 8,396 crore (42.94 per cent) out of total exports of Rs 19,552 crore during 2004-05.

The State expects the exports to grow by 60 per cent during 2005-06, the Chief Minister said.

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