11  Executive Summary……………………. 3  Advantage State………………………... 5  Andhra Pradesh – An Introduction……. 6  Infrastructure Status…………………….17  Business Opportunities……………..…. 35  Doing Business in Andhra Pradesh….. 60  State Acts & Policies………………… For updated information, please visit AUGUST 2013 ANDHRA PRADESH THE RICE GRANARY OF INDIA

22 For updated information, please visit EXECUTIVE SUMMARY … (1/2) Source: Andhra Pradesh Socio-Economic Survey , Aranca Research AUGUST 2013 ANDHRA PRADESH THE RICE GRANARY OF INDIA Most operational SEZs Andhra Pradesh has 38 operational special economic zones (SEZs), higher than any other state in the country. It also has the highest number of IT/ITeS-related SEZs in India. “The hi-tech city” in Hyderabad is the largest IT facility in India. Largest ITIR in development India’s first Information Technology Investment Region (ITIR) will be developed in Andhra Pradesh over an area of 202 sq km. ITIR is likely to attract investments of around US$ 40.4 billion. Revenues of US$ 10 billion from IT sector Revenue from the IT sector crossed the US$ 10 billion mark over World’s largest single deposits of barytes Andhra Pradesh has the largest single deposits of barytes in the world. It has around 70 million tonnes of baryte reserves, accounting for 94 per cent of total baryte reserves in India. Largest producer and exporter of bulk drugs Andhra Pradesh ranks first in the manufacturing of bulk drugs in India and accounts for around one-third of the national production of bulk drugs.

33 For updated information, please visit Source: Andhra Pradesh Socio-Economic Survey , Aranca Research AUGUST 2013 ANDHRA PRADESH THE RICE GRANARY OF INDIA One of the largest mineral storehouses Andhra Pradesh is the largest producer of barytes and limestone in India. It also has the largest reserves of granites (estimated at 2.4 billion cubic metres) and beach sand (241 million tonnes) in the country. Largest producer of spices, fruits, eggs The state is the largest producer of spices, fruits and crops, including citrus, papaya, oil palm and tomato, in India. It also ranks first in the production of eggs and third in milk production in the country. Largest exporter of marine products Andhra Pradesh ranks first in the production of brackish-water shrimps and fresh-water prawns. It contributes around 40 per cent to the country’s total marine exports. Second largest cement producer Andhra Pradesh is the second largest cement producer in India. Electronic hardware policy Andhra Pradesh is the first state to develop an Electronic Hardware Policy in India ( ), wherein, the state government plans to provide incentives for setting up more than 200 electronic manufacturing clusters in the stage. EXECUTIVE SUMMARY … (2/2)

44 For updated information, please visit Source: Socio-Economic Survey of Andhra Pradesh GSDP: Gross State Domestic Product AUGUST 2013 ANDHRA PRADESH THE RICE GRANARY OF INDIA The engineering sector is delicensed; 100 per cent FDI is allowed in the sector Due to policy support, there was cumulative FDI of USD14.0 billion into the sector over April 2000 – February 2012, making up 8.6 per cent of total FDI into the country in that period Growing demand High economic growth GSDP expanded at a compound annual growth rate (CAGR) of 16 per cent between and Vast natural gas reserves in the Krishna-Godavari basin have opened up immense possibilities for the state economy Andhra Pradesh is a leading agricultural state in India Hub for knowledge-based industries Key state for industries including IT, pharmaceuticals and biotechnology Host to 71 out of 500 top global corporations and has the highest number of IT SEZs in India (56 as of ) Fourth largest IT exporter in India, accounting for 12 per cent of the country’s total IT exports Policy and infrastructure support Wide range of fiscal and policy incentives for businesses under the Industrial Investment Promotion Policy, Well drafted sector-specific policies Well-developed social, physical and industrial infrastructure and virtual connectivity, and has good power, airport, IT and port infrastructure Rich labour pool Large base of skilled labour, making it an ideal destination for knowledge- intensive sectors Provides 30 per cent of the country’s engineering talent through prestigious institutes such as IIT, JNTU, IIIT, BITS, ISB and NIT Furthermore, the state has a large pool of semi-skilled and unskilled labour IT exports: US$ 8.5 billion 2017E IT exports: US$ 31.3 billion Advantage: Andhra Pradesh ADVANTAGE: ANDHRA PRADESH

55 For updated information, please visit ANDHRA PRADESH FACTFILE Andhra Pradesh is located in the southern peninsula of India and has a coast line of 974 km. The state of Andhra Pradesh is bound by Odisha and Chhattisgarh on the north, Maharashtra and Karnataka on the west, Tamil Nadu on the south, and the Bay of Bengal on the east. Hyderabad, Visakhapatnam, Vijayawada, Tirupati, Warangal, Guntur, Kakinada, Nellore and Kurnool are some of the key cities in the state. Most commonly spoken language is Telugu. Hindi, English and Tamil are the other languages used. Sources: Andhra Pradesh Government Website ( * Provisional Data – Census 2011 AUGUST 2013 ANDHRA PRADESH THE RICE GRANARY OF INDIA Source: Maps of India

66 * Calculated in Indian rupee terms, ** As of January 2013, *** As of December 2011, ^ Advanced estimates For updated information, please visit AUGUST 2013 ANDHRA PRADESH THE RICE GRANARY OF INDIA ANDHRA PRADESH IN FIGURES … (1/2)