Assocham suggests recipe for AP growth

With a view to establish a vibrant entrepreneurial eco-system, it suggested the govt to set up an 'AP Entrepreneurship Mission'
Assocham suggests recipe for AP growth

Industry body Assocham suggested the Andhra Pradesh government promote value addition in agriculture sector and create opportunities to double farmer incomes, thereby encouraging them to produce and export high-value fruits and vegetables using modern farming technologies and high quality seeds.

These measures should be duly supported by setting up food processing centres and world-class agriculture universities, said the Associated Chambers of Commerce and Industry of India.

With a view to establish a vibrant entrepreneurial eco-system in the state, it suggested the government to set up an ‘AP Entrepreneurship Mission’, based on public-private partnership (PPP) model.

"With the ultimate objective of employment generation through acceleration of entrepreneurship and business creation to tap rural markets of AP, the mission must aim to facilitate 200 business and convenience hubs to provide services and facilities to both rural industries and households," said an Assocham paper titled ‘Strategy for Developing the New Andhra Pradesh State’.

"Considering that cost of one rural entrepreneurial hub would be in a range of Rs 30-50 crore, it would require financial support worth Rs 6,000-10,000 crore to create requisite ecosystem during the course of next 10 years," said the paper prepared by Assocham Economic Research Bureau.

As in the case of special category state (which is being demanded by Andhra Pradesh) 90 per cent cost of creating this ecosystem will be through a grant from the Centre and the remaining being treated as loan to the AP government, it said.

Each rural business and convenience hub should have an e-governance and agriculture service centre; nursing home, pathological lab and pharmacy; banks and non-banking financial institutions (NBFCs); skill development centre; rural market; proper connectivity and other such facilities.

"Such a vibrant eco-system would ensure an easy access to capital flows comprising both debt and equity to entrepreneurial ventures; venture capital required for further scaling up of businesses; angel investor services to provide mentoring and network access to entrepreneurs and others," Assocham’s national general secretary D S Rawat said while releasing the findings of the paper.

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