Growth Strategy:

• The city has a robust pharmaceutical sector and skilled workforce
• Major allocation of investments in large-scale projects can spur economic growth
• Favourable policies, increased budgetary allocation for MHFVs will incentivise the adoption of EVs

Visakhapatnam: CII Visakhapatnam Zone Chairman Grandhi Rajesh on Monday said the Central Government should expedite the implementation of the Rs 1 lakh crore fund announced in the Interim Union Budget for 2024-25.

The fund, offering 50-year interest-free loans, aims to stimulate private sector investment in R&D and innovation. Emphasising the city’s robust pharmaceutical sector and skilled workforce, Visakhapatnam can play a critical role in attracting R&D investments in the areas of renewable energy, chemicals, food processing and biotechnology.

Emphasised industries’ focus on environmental responsibility and sustainability, citing critical measures announced at WTO to tackle climate change. Rajesh said that in the Union Budget 2024, allocation of funds specifically for building sustainable and climate-resilient infrastructure under the PM Gati Shakti Plan highlighted the need for incentives to promote sustainable practices which will help businesses to align with global sustainability standards and contribute to India’s broader environmental goals.

Given the prominence of the ports sector in Visakhapatnam’s economic landscape, favorable policies and increased budgetary allocation for medium and heavy freight vehicles (MHFVs) will incentivise the adoption of electric vehicles (EVs), advancing towards a more sustainable economy.

Introducing an employment linked Incentive scheme for labour-intensive sectors like agri services, textiles, apparel tourism, logistics and pharma sector could boost the growth of Visakhapatnam region. Potential benefits could include tax breaks for companies hiring new employees and wage subsidies for additional jobs created over a specific timeframe. Funding skill development initiatives beyond easing regulatory processes will bolster economic growth.

He added that granting infrastructure status to the travel and tourism sector could be a game changer for Visakhapatnam, enhancing better access to finance, securing funding for tourism projects and attracting significant investment for the development of iconic tourist destinations. This initiative has the potential to boost visitor numbers, stimulate local economies and robust employment generation.

Rajesh said major allocation of investments in large-scale projects like highways, railways, and urban development can spur economic growth, create substantial employment opportunities, improve supply chains and costs for manufacturing companies.