State poised for 8.89 pc growth: Geeta Reddy

Hyderabad, March 11 (INN): Stating that the government is doing everything possible to ensure a better industrial climate and develop economic activity, Minister for Major Industries and Commerce J Geeta Reddy on Friday said that the state's economy is likely to grow by 8.89 per cent in the year 2010-11 notwithstanding the heavy rains and floods which have adversely impacted the farming and allied sectors. 'This reflects the inbuilt strength of Andhra Pradesh economy,' she said.

Addressing the gathering at the Annual Day Session of the Confederation of Indian Industries at the Park Hotel in the city, the Minister said that the state is likely to witness a growth of 8.39 per cent in Agriculture sector. Food grains production is expected to increase to 190 lakh tonnes as against 156 lakh tonnes, in the last year, she added.

During the current financial year the industrial sector is expected to achieve a growth rate of 7.79 per cent as per estimates. The services sector, which has a lion's share in the GSDP, is expected to record 9.61 per cent growth rate during 2010-11. 'This clearly reflects the state economy is on the growth path,' the Minister said.

Dr Geetha Reddy stated that Andhra Pradesh's strength lies in its fully diversified industrial base, with the thrust on high-tech sectors including information technology, pharmaceuticals, biotechnology and Nanotechnology. Traditional sectors such as textiles, leather, minerals, and food processing are also being further developed for high value addition. She pointed out that Andhra Pradesh is best investment destination for investors.

'To attract more investments and generate employment opportunities the government of Andhra Pradesh has come up with a comprehensive Industrial Investment Promotion policy for a period of 2010-15. The policy aims to achieve manufacturing growth of 12-17 per cent and create employment of 5 lakh persons a year,' the Minister stated.

The policy also envisages promotion of industries along the natural gas pipeline to be laid in the state, creation of quality infrastructure in industrial clusters, promotion of manufacturing investment regions along national highways and setting up of industrial estates in backward areas in public ' private partnership mode. The government is also providing several incentives to industries like cheapest power in the country, 75 paise reimbursement per unit to Industry for five years, VAT reimbursements and other concessions besides best infrastructure facilities like land and water, she pointed out.

Reminding that the recession has hit the world economy badly, Dr Geetha Reddy pointed out that the economies are slowly and steadily recovering from the impact of recession which affected them in the last two years. 'Indian economy is back on track and moving towards a higher growth. As per advance estimates, the country's GDP is expected to grow at 8.58 per cent in the current financial year 2010-11 as against 7.96 per cent in 2009-10. Advance estimates indicate that the State would perform much better, overcoming all odds like global recession and natural calamities like heavy and untimely rains, floods etc,' the Minister stated.

She expressed her happiness that the CII is supplementing the Government's efforts to have an inclusive growth and it has chosen to work on skill development to achieve this common target. Dr Geetha Reddy stated that all stakeholders, the government, the industry and the education service providers have a role to play in addressing this issue of lack of skilled man power to the industry.