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Andhra Pradesh Startup Policy in Hyderabad

AP Startup Policy

Department of Information Technology, Government of Andhra Pradesh

Guidance for businesses in Hyderabad

The Andhra Pradesh Startup Policy, driven by the Department of Information Technology, Government of Andhra Pradesh, builds the state's startup and IT ecosystem through funding, incubation, training, tax and regulatory support, women-focused incentives, market access, and world-class infrastructure.

At a glance

Policy Name
Andhra Pradesh Startup Policy
Nodal Agency
Department of Information Technology, Govt. of AP
Fund of Funds
₹100 crore for startups
Quality Certification
50% reimbursement, up to ₹5 lakh per firm
Women IT Jobs Incentive
₹75,000–₹1,50,000 per local position
Focus
IT and emerging technologies

Benefits

Funding:

  • The Government commits ₹100 crore for startup funding (Fund of Funds in collaboration with venture capitalists), and supports early-stage startups under programs like "Accelerate Startups in Andhra Pradesh" (ASAP), including plug-and-play spaces and training.

Quality Certification:

  • 50% reimbursement of quality certification charges, capped at ₹5 lakh per firm.

Women Entrepreneurs:

  • Employment-creation incentives per local IT position (High-End ₹1,50,000; Mid-Level ₹1,12,500; Entry-Level ₹75,000), 50% reservation in scholarships/vocational training, and priority access to plug-and-play office spaces.

Work-From-Home & Gig:

  • ₹20,000 per employment position for remote-work infrastructure; 50% reimbursement of IT hardware costs (up to ₹20,000 per gig worker, subject to executing gigs worth at least ₹3 lakh/year); and a transport subsidy of ₹500 per position per month for 2 years (capped at ₹10 lakh per firm).

Training Incentives:

  • ₹10,000 per local full-time direct employment position facilitated for registered training institutes with physical premises in AP.

Market Access:

  • Preferential procurement (100% of IT requirements up to ₹1 crore from local firms; 5% extra evaluation marks above ₹1 crore) and access to investor/mentor networks via ASAP.

Infrastructure:

  • IT Concept Cities, an Integrated Technology Park (Visakhapatnam), satellite centres, digital libraries at Gram Panchayats, and co-working spaces; land allotment incentive of ₹50,000 per job created (capped at 60% of land value) for IT park developers; and a 10 MW State Data Center.

Tax & Regulatory Ease:

  • Statutory exemptions, industrial power tariff, self-certification, deemed IALA approvals, 3-shift (incl. women at night) permissions, and essential-service status for the IT industry.

Eligibility

  • Startups and IT firms operating in Andhra Pradesh (with a focus on IT and emerging technologies such as AI/ML, IoT, blockchain, and AR/VR).
  • Women-owned enterprises, gig workers, and registered training institutes are eligible for specific incentives.
  • Other conditions as prescribed by the Department of Information Technology and its agencies (APITA/APEITA).
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Documents required

  • DPIIT recognition certificate (for startups)
  • Certificate of incorporation/registration of the entity
  • Business plan / project proposal
  • Quality certification invoices (for reimbursement claims)
  • Proof of employment positions created (for incentive claims)
  • PAN, GST, and bank account details
  • Any other document as required by the Department of Information Technology / APITA / APEITA

How to apply

Startups and IT firms should apply through the Department of Information Technology, Government of Andhra Pradesh (via its comprehensive investment portal for project applications, permissions, and incentive claims) or through programs like "Accelerate Startups in Andhra Pradesh" (ASAP). Submit the required documents for evaluation, incentive claims, and access to incubation, funding, and infrastructure support.

About the scheme

The Andhra Pradesh Startup Policy, run by the Department of Information Technology, aims to foster innovation and entrepreneurship — especially in IT and emerging technologies (AI/ML, IoT, blockchain, AR/VR). It offers funding, incubation, skilling, regulatory ease, market access, and infrastructure, with special incentives for women entrepreneurs and gig/remote workers.

Why it matters

  • Fund of Funds:
    • ₹100 crore committed for startup funding.
  • Quality Support:
    • 50% reimbursement (up to ₹5 lakh) on certification.
  • Women & Gig:
    • Special incentives for women entrepreneurs and gig workers.
  • Ease of Business:
    • Regulatory exemptions, self-certification, deemed approvals.

Focus areas

  • Funding & Incubation:
    • Fund of Funds, incubation centres, and Centers of Excellence.
  • Skilling & R&D:
    • MOOCs, APITA training, and applied research.
  • Women & Gig Economy:
    • Incentives for women entrepreneurs and gig/remote workers.
  • Market Access & Infrastructure:
    • Preferential procurement, IT Concept Cities, plug-and-play spaces.

Is this scheme right for you?

The Andhra Pradesh Startup Policy offers a comprehensive package — a ₹100 crore Fund of Funds, quality-certification reimbursement, women/gig/remote-work incentives, incubation, regulatory ease, preferential market access, and world-class IT infrastructure. If you are a startup or IT firm in AP, this policy can fuel your growth across multiple dimensions.

Frequently asked questions

What is the Andhra Pradesh Startup Policy?

It is a policy of the Department of Information Technology, Government of Andhra Pradesh, to build the startup and IT ecosystem through funding, incubation, training, tax/regulatory support, market access, and infrastructure.

How much funding is committed for startups?

The Government commits ₹100 crore for startup funding as a Fund of Funds in collaboration with venture capitalists.

What quality-certification support is available?

The policy offers 50% reimbursement of quality certification charges, capped at ₹5 lakh per firm.

What incentives are available for women entrepreneurs?

Women-owned enterprises receive higher employment-creation incentives (₹1,50,000 / ₹1,12,500 / ₹75,000 per local IT position for high-end/mid-level/entry-level jobs), 50% reservation in scholarships/vocational training, and priority access to plug-and-play office spaces.

Is there support for remote work and gig workers?

Yes — ₹20,000 per position for remote-work infrastructure, 50% reimbursement of IT hardware (up to ₹20,000 per gig worker, subject to gigs worth at least ₹3 lakh/year), and a transport subsidy of ₹500 per position per month for 2 years (capped at ₹10 lakh per firm).

What market-access support does the policy provide?

Preferential procurement — 100% of IT requirements up to ₹1 crore from local firms, and 5% extra evaluation marks for tenders above ₹1 crore — plus access to investor and mentor networks through ASAP.

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Scheme: Andhra Pradesh Startup PolicyCity: Hyderabad

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