We achieved higher growth in IT than the national average

Can you give us a sense of growth in the IT sector in AP?
We were able to achieve higher growth rates in comparison to the national
average in the IT sector. For instance, in 2007-08, AP has achieved export
growth rate of 41% as against the national average of 32% by recording a
turnover of Rs 26,122 crore. I would like to stress that IT has contributed 52%
of the total exports from the state. During 2007-08, AP contributed 15% of the
national IT exports and stood at #4 in IT performance in the country. In terms
of total IT employment created in the state, during the 1997-2004, it was around
85,945 and during 2004-2008 we have grown to about 1,53,055.

We have envisaged that one direct employment created in IT in turn creates
four indirect employments in other sectors of the society.

What is the infrastructure being created for IT?
Our approach is multi-pronged. Aspects like infrastructure, percolation into
tier-2 and -3 cities, and creating skilled talent. We are creating Plug-and-Play
and Walk-and-Work kind of office environment suiting the requirements of the IT
sector. For this purpose 53 IT/ITeS SEZs, with active private sector
participation, are being promoted. With a built up space of over 100 mn sqft,
these would provide employment to over 12 lakh people in a span of three years.

What do you have to say about growth in tier-2 locations?
The growth of IT has been concentrated mostly in Hyderabad. We are aggressively
embarking on promoting growth in emerging pockets as well. Other cities in the
state like Vizag, Warangal, Kakinada, Tirupati and Kadapa have been identified
as promising tier-2 and tier-3 locations. The state government in association
with APIIC is promoting IT/ITeS product-specific SEZs in all the above
locations. Moreover, in order to encourage the growth of SME IT units, the
government, in association with SME association and HYSEA, is planning to set up
exclusive IT SEZ SMEs.

Can you elaborate on some of the initiatives taken by AP in promoting IT
As a state we have the potential for growth of the IT/ITeS industry as a
large talented and rural human resource pool is available here. The 338
engineering colleges churn out 1, 20,617 engineering graduates. Meanwhile the 93
ME/MTech colleges produce 6,142 students. In addition we have around 480 MCA
colleges which roll out 31,869 students. On the management side we have 354 MBA
colleges which produce 26,228 management graduates. In the general Arts and
Sciences stream there are around 1,670 colleges that produce 425,811 graduates.
So with this backdrop we have programs like Rajiv Udyogsri, which aims to
facilitate skill upgrading of students and improves their employability
quotient. IT MNCs like Infosys, Genpact etc are involved in this effort.

What about the Digital Media City?
This has been done with the intention to promote growth in the animation and
gaming industry.

Shrikanth G

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