News, 26 March 2025
The Andhra Pradesh government has announced its AP Innovation & Startup Policy (4.0) for the period 2024-2029, aiming to establish 20,000 new startups and generate a minimum of 100,000 jobs over the next five years. This policy also seeks to foster the creation of 20 Soonicorns and 10 Unicorns, along with the development of 10 Centers of Excellence in several high-tech sectors, including Deeptech, blockchain, decentralized systems, Extended Reality (XR), virtual and augmented reality, Internet of Things, quantum computing, climate technology, healthtech, biotech, life sciences, medtech, advanced manufacturing (encompassing 3D printing, robotics, and nanotechnology), automotive, cybersecurity, and cloud computing. The Government Order (G.O.) was issued by Katamneni Bhaskar, the Secretary of IT, Electronics, and Communications.
The policy highlights Andhra Pradesh’s historical role as an innovator, leveraging both national and global best practices to cultivate a vibrant startup culture.
In 2014, the state became the first in India to launch a Startup and Innovation Policy, followed by the A.P. Information Technology Policy (2021-2024), which provided numerous incentives for startups. This previous policy is set to expire on September 30, 2024. The new policy is designed to tackle emerging challenges and seize opportunities arising from technological advancements, market dynamics, and the changing demands of entrepreneurs.
As of December 2024, The Department for Promotion of Industry and Internal Trade (DPIIT) has recognized 150,000 startups in India, reflecting a remarkable 120% compound annual growth rate (CAGR) in startup formation since 2015. Nearly half of these startups originate from Tier-2 and Tier-3 cities. Over the past five years, Andhra Pradesh has nurtured 6,600 startups, with 2,400 of them being registered by DPIIT. In the 2022 State Startup Ranking, Andhra Pradesh was designated a “leader,” reinforcing the state’s dedication to strengthening its startup ecosystem.
