In order to attract investments in textile production and apparel manufacturing, the Government has released operational guidelines for the implementation of the A.P. Textile, Apparel and Garments Policy (4.0) 2024-29. These guidelines place a particular emphasis on value addition, employment creation, and environmental protection for the state of Andhra Pradesh.
According to G.O. Ms. No. 55, between 2014 and 2024, more than 848 units began production with a total investment of over Rs. 13,617 crore (US $ 1.58 billion), creating jobs for 1,05,225 people. However, since then, there has been little advancement in value-added textile activities like weaving, knitting, technical textiles, processing, and integrated units.
These markets have a lot of potential for creating jobs on a broad scale in addition to adding value. To guarantee the conversion of all yarn produced in the state into fabrics and stop value migration, it was believed that a targeted strategy was required, necessitating a set of policies that support important elements of the textile value chain. In light of this, the Government developed the aforementioned policy. It will remain in effect until 10th December 2029.
According to the policy, a micro enterprise is a business that invests less than Rs. 1 crore (US $ 116,000) in plant and machinery (P&M) or equipment and has a turnover of less than Rs. 5 crore (US $ 581,000); a small enterprise is a business that invests less than Rs. 10 crore (1.16 million) in P&M or equipment and has a turnover of less than Rs. 50 crore (US $ 5.81 million); and a medium enterprise is a business that invests less than Rs. 50 crore (US $ 5.81 million) in P&M or equipment and has a turnover of less than Rs. 250 crore (US $ 29.06 million).
Units with fixed capital investments (land, buildings, plant, machinery, and equipment) between Rs. 50 crore (US $ 5.81 million) and Rs. 100 crore (US $ 11.62 million) and Rs. 100 crore (US $ 11.62 million) to Rs. 200 crore (US $ 23.25 million) are classified as sub-large and major industries. According to the policy, an organisation that has invested more than Rs. 200 crore (US $ 23.25 million) in fixed capital is considered a mega industry.
For mega and above projects, the Government has established a process for claiming custom incentives. One of the incentives is an “early bird offer” for sub-large and above businesses. The State Investment Promotion Board will make decisions under the policy based on suggestions from the State Investment Promotion Committee.
