AP Eyes 20K Startups

This breaks new ground by minimizing government intervention and empowering private players to lead innovation with hub and spoke model - Sreedhar Kosaraju, Director, APDTI, tells Bizz Buzz

Amaravati: The Andhra Pradesh Government on Monday released a GO announcing a slew of incentives for startups and innovators under the AP Startup & Innovation Policy 4.0 (2024-29). The policy promises upfront initial grant up to Rs2 lakh, grants for women/BC/SC/ST/minority/differently abled and others.

The earlier policy, i.e., AP Information Technology Policy for 2021-24 consisting of the various support and incentives extended to the startups in the same policy lapsed on September 30, 2024. To address new challenges and seize opportunities presented by advancements in technology, market dynamics, and the evolving needs of startup entrepreneurs there exists a need to formulate dedicated policy with a long-term objective to create 20,000 new startups in the next five years, creating at least one lakh employment in the startup ecosystem within the State.

In its GO MS: No. 3 dated March 24, 2025, the government said AP Innovation & Startup Policy (4.0) shall be valid for a period of five years from the date of the policy notification or till a new policy is announced. New startup founders, incubators and existing startup founders, who wish to apply for the various fiscal and non-fiscal support listed under this policy may apply accordingly. The policy may be amended and modified during implementation. However, all such amendments and modifications shall be applied prospectively and shall not curtail any benefit or concession already granted under the policy.

AP Innovation & Startup Policy 4.0 is a bold step toward making our State the Silicon Valley of India. With the Ratan Tata Innovation Centers and a target of 20,000 startups, we’re creating an ecosystem where ideas thrive, jobs are generated, and global investors take notice, the AP government said.

Describing the new policy as a role model initiative for others to emulate, Sreedhar Kosaraju, Director, APDTI (AP Digital Technology Industry) Network, told Bizz Buzz: “This policy breaks new ground by minimizing government intervention and empowering private players to lead innovation with hub & spoke model.”

He said the policy will position AP as a magnet for talent and capital, driving economic transformation. The Ratan Tata Innovation Hub is more than infrastructure - it’s a launchpad for futuristic technologies like AI, IoT, and clean energy.

“Kudos to Chief Minister N Chandrababu Naidu, IT Minister Nara Lokesh, Secretary Bhaskar Katamneni and the tireless team at AP Innovation Society (APIS) for making AP the ultimate startup destination,” he stated.