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Make in Andhra Pradesh Information Technology Policy 2026-2030

Empowering Digital Transformation

The Andhra Pradesh State Data Centre Policy 2026 is paving the way for the state to become India’s leading destination for data centre investments. With its strategic infrastructure, business-friendly policies, and skilled workforce, Andhra Pradesh is primed to capture significant global attention and investment.

By 2026, the state aims to attract ₹50,000 crores in investments, create 50,000 new jobs, and establish over 10 data centre parks powered by renewable energy. This policy lays a strong foundation for immediate growth while positioning Andhra Pradesh for long-term leadership in the global digital economy.

Vision for 2030
Andhra Pradesh as a Global IT Hub

By 2030, Make in Andhra Pradesh envisions transforming the state into a leading IT hub, creating 100,000 jobs in the IT sector and generating ₹10,000 crores in annual IT revenue, including both exports and domestic sales. The aim is to establish Andhra Pradesh as a globally recognized leader in IT outsourcing, driving India’s digital growth. Through this policy, the state will:
  • Double the area earmarked for IT development, expanding IT parks and hubs across Andhra Pradesh.
  • Ensure balanced socio-economic growth by promoting digital inclusion, skill development, and support for startups and innovators.
  • Foster a global innovation ecosystem with a focus on new-age technologies such as Artificial Intelligence, Blockchain, and Cybersecurity.

Mission
Creating an IT Ecosystem for Growth and Innovation

Make in Andhra Pradesh seeks to empower businesses, innovators, and the government to succeed in the digital era. The key objectives of the Andhra Pradesh IT Policy 2026 are:
  • Attracting large-scale investments to establish Andhra Pradesh as the leading IT destination in India.
  • Fostering start-ups and innovation by creating an ecosystem that supports creativity and new ideas.
  • Promoting digital literacy and expanding internet access across the state, driving Andhra Pradesh towards “Internet for All.”
  • Enhancing governance efficiency by implementing technology-driven solutions for transparency and service delivery.

Key Strategies
Building a Future-Ready Andhra Pradesh

To achieve these ambitious goals, Andhra Pradesh is adopting several strategies to create a thriving IT ecosystem:

State-of-the-Art IT Parks and Infrastructure

By 2030, Andhra Pradesh will double the space allocated for IT parks. Key urban centers like Vijayawada, Visakhapatnam, and Nagpur will witness the growth of cutting-edge IT parks, equipped with plug-and-play infrastructure, incubation centers, and collaborative co-working spaces to support start-ups and tech companies.

Incentivizing IT Investments

The government is dedicated to fostering an investment-friendly environment by offering a range of fiscal and non-fiscal incentives to IT companies. Investors will benefit from capital and power subsidies, as well as tax exemptions, ensuring that Andhra Pradesh remains an attractive and competitive destination for both domestic and international IT players.

Skill Development and Employment Creation

Andhra Pradesh is committed to training 10,000 IT professionals by 2030 through industry-recognized certifications and specialized training programs. The policy also introduces employment-based incentives, encouraging IT firms to hire local talent, thereby driving job creation and strengthening the state’s workforce.

Promoting Emerging Technologies and R&D

Make in Andhra Pradesh is dedicated to driving innovation in emerging technologies such as AI, IoT, Blockchain, and Cloud Computing. The state will establish research and development centers and provide incentives for companies pioneering technological advancements, positioning Andhra Pradesh as a global leader in tech innovation.

Incentives for IT Investments

The Andhra Pradesh IT Policy 2026 provides a robust framework of incentives to attract large-scale investments in the IT sector. These incentives are designed to promote IT infrastructure, innovation, and employment growth across Andhra Pradesh.

Incentive TypeDetails
Capital Investment Incentives30% subsidy on fixed capital investments (excluding land) with a cap of ₹3 crore for eligible IT units.
SGST Reimbursement100% reimbursement of SGST for 5 years in Andhra Pradesh Industrial Development Corporation (MIDC) areas and 7 years in Non-BDA areas.
Electricity Duty ExemptionExemption from electricity duty and electrical inspection fees for 5 years. A 30% reimbursement of electricity tariffs for 3 years, capped at ₹35 lakhs per unit.
Green IT Practices25% reimbursement for adopting green practices, capped at ₹30 lakhs per unit based on certification.
Employment-Based Incentives100% reimbursement for ESI and EPF contributions, up to ₹5 crores per annum for 3 years. Higher limits for Non-BDA areas.
Recruitment Assistance₹10,000 per newly recruited employee who is a domicile of Andhra Pradesh, with additional incentives for women, SC/ST, and disabled employees.
Skill Development Subsidy50% reimbursement of training fees, capped at ₹20 lakhs per unit over 5 years.
Marketing and International Exhibitions50% reimbursement for participation in state, national, and international exhibitions.
Stamp Duty Exemption100% exemption on first transaction,and 50% exemption on second transaction for land/building transactions related to IT projects.

Empowering IT Parks and Start-Ups

To promote the growth of IT parks and start-ups, the policy offers additional incentives for IT infrastructure development:

  • Incentives for start-ups include 80% rental subsidies for incubation spaces, fostering a start-up culture across Andhra Pradesh.
  • 25% capital subsidy on infrastructure investment in IT parks, capped at ₹20 crores.
  • Lease rental reimbursements of 75% of the rent or ₹20 per sq. ft. for eligible IT units employing more than 40 employees.
  • 100% SGST reimbursement on machinery, equipment, and construction materials for the development of IT parks.

Driving Research, Development, and Innovation

Make in Andhra Pradesh promotes investment in Research & Development to foster innovation within the IT sector. The government will offer:
  • A 50% reimbursement of R&D expenses, up to ₹1 crore per year, for successful product development or R&D activities.
  • Incentives for patent filings, providing 75% reimbursement of patent costs, capped at ₹2 lakhs for domestic patents and ₹5 lakhs for international patents.
  • VFX and Animation incentives, including a 25% capital subsidy and additional support for women, SC/ST, and disabled entrepreneurs in the AVGC sector.

Conclusion
A New Era for IT in Andhra Pradesh by 2030

The Andhra Pradesh IT Policy 2026 is more than just a policy—it’s a visionary roadmap to position Andhra Pradesh as India’s premier IT hub. By 2030, the state will be globally recognized for its innovation, entrepreneurship, and leadership in technology. With a strong focus on digital inclusion, economic growth, and global competitiveness, Andhra Pradesh is poised to lead the charge in India’s digital economy.

Make in Andhra Pradesh invites global investors, innovators, and entrepreneurs to join in this transformative journey and build a future where Andhra Pradesh stands as a leader in the global IT landscape.

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About Make in Andhra Pradesh

Make in Andhra Pradesh is on a mission to establish the state as a global leader in economic collaboration, driving strategic partnerships with key nations such as the USA, Europe, Australia, the African Union, KSA, China, India, Qatar, Saudi Arabia, Türkiye, and the UAE. Our focus spans critical sectors like energy, technology, agriculture, and finance, as we seek to integrate lessons from successful global economic models and adopt best practices for sustainable, inclusive growth. Our vision is to accelerate economic prosperity, diversify industries, and foster societal progress. We are committed to promoting sustainable economic practices that ensure long-term growth while enhancing Andhra Pradesh’s role on the global stage. By leveraging the state’s unique geographical advantage and infrastructure, Make in Andhra Pradesh is poised to drive transformative economic growth, ignite innovation, and elevate the state’s stature within the international economic arena. This aligns seamlessly with the government’s vision of building a technologically advanced, interconnected economy.

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