Andhra Pradesh registers steady rise in new firms in last 5 years

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Notwithstanding the Covid-19 pandemic, there has been asteady risein the registration of new companies inAndhra Pradeshin the last five years, as per the data provided by the Union ministry of corporate affairs. As many as 3,439 new companies were incorporated in state in 2020-21 financial year compared to 2,300 in 2016-17.

Altogether, 13,805 new companies were set up under the Companies Act, 2013 between

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2016-17 and 2020-21 in Andhra Pradesh. During the same time, 8,779 companies went out of business in the state.

However, state pales in comparison when it comes to the new companies floated in states like , Maharashtra, Karnataka,Tamil Nadu, Delhi, Uttar Pradesh and Gujarat.
For instance, 10,128 new companies ventured into the market in 2020-21 in neighbouring Telangana compared to Andhra Pradeshs 3,439 during the same period. Other southern states like Karnataka (12,280 new enterprises), Tamil Nadu (9,632), andKerala(6,409) also dominated the business sphere.

The Andhra Pradesh government has introduced theAPIndustrial Development Policy (IDP) 2020-23, identifying 10 thrust areas. Manufacturing sector, accounting for about 11% of the gross state domestic product, remains the high focus area in the state.

According to the official statistics of the State Government, 44 large and mega industrial projects were established with an Subscribe on YouTube

href="https://exam.pscnotes.com/investment">Investment of Rs 22,282 crore in 2019-20. The state attracted Rs 3,656 crore investment by paving way for 12 large and mega projects in 2020-21. The Covid-19 pandemic seems to have an impact on the quantum of investment in the MSME sector in the state besides the large industries. As many 10,019 MSMEs set up their shops in Andhra Pradesh with an investment portfolio of Rs 2,979 crore in 2019-20. The investment flow in the MSMEs has decreased to Rs 2,154 crore in 2020-21.

During 2020-21, 1,061 large and mega industries filed their proposals with the state nodal agency for 1,332 clearances and approvals from various departments.

Andhra Pradesh Industrial Infrastructure Corporation allotted 467 acres of industrial land to 660 units with an EMPLOYMENT potential of 31,462 and proposed investment of Rs 2,244 crore in the 2020 calendar year.