AP Govt earmarks Rs 300 Crore to boost industries and employment

The Andhra Pradesh government has earmarked Rs 300 crore for fiscal year 2025-26 to incentivise industries and organisations, with Rs 60 crore released on Wednesday for the third quarter of the financial year. The funds were released through the Information Technology, Electronics & Communications Department via Andhra Pradesh Technology Services Ltd, Vijayawada, which will oversee the distribution.

According to IT Secretary Bhaskar Katamneni, the incentives are intended for organisations and industries that actively support the state’s policies, including the IT & GCC Policy 4.0 and the Electronics Manufacturing Policy 4.0, designed for the 2024–29 period. These policies aim to strengthen infrastructure, attract global IT firms, establish data centres, promote electronics manufacturing, and create employment opportunities.

Companies benefiting and their activities

Several major IT and electronics companies have a strong presence in Andhra Pradesh:

• TCS (Vijayawada, Visakhapatnam, Amaravati): Software development, IT consulting, cloud services, and BPO operations. Employs around 6,000–7,000 staff, with approximately 4,500–5,000 locally recruited.

• Infosys (Visakhapatnam, Amaravati): Software development, cloud operations, data analytics. Around 2,500–3,000 employees, with 2,000–2,500 local hires.

• Tech Mahindra (Vijayawada, Guntur): IT/ITES services, customer support, and enterprise IT solutions. Employs about 2,000–2,500, with 1,500–2,000 local recruits.

• Celestica (Sri City, Chittoor district): Electronics manufacturing, PCB assembly, testing, and prototyping. Employs ~1,000–1,200, mostly local hires.

• Jabil (Sri City, Chittoor district): Electronics assembly, quality assurance, and supply chain operations. Employs ~1,500–1,800, predominantly local staff .

These companies have recruited thousands of local professionals, mainly for software, IT services, electronics manufacturing, testing, and quality assurance roles. Only a small fraction of temporary employees were involved in initial office or plant setup.

Salary structure and employment benefits

• IT Companies (TCS, Infosys, Tech Mahindra): Salaries for software engineers range from ₹3.5–8 lakh per annum for entry-level roles, and up to ₹10–20 lakh for senior positions. BPO or support staff earn ₹3–5 lakh per annum.

• Electronics Manufacturers (Celestica, Jabil): Technicians and assembly staff earn ₹2.5 -- 4.5 lakh per annum, with quality engineers and supervisors earning up to ₹6–8 lakh. Temporary setup staff earn significantly less (₹12,000–25,000 per month) during initial operations.

Government’s objective

The incentives, which will be disbursed quarterly, are aimed at:

• Encouraging investment and expansion by IT and electronics firms.

• Generating local employment, especially for fresh graduates and skilled professionals.

• Strengthening Andhra Pradesh as a hub for IT, data centres, electronics manufacturing, and emerging technologies.

• Supporting infrastructure development, such as co-working spaces, industrial parks, and innovation centres.

Officials emphasised that the Rs 300 crore initiative is part of the state’s ongoing effort to boost economic growth, innovation, and digital economy development while ensuring maximum benefit to local talent and industries.