Hyderabad Mar 20, (ANI/Business Wire India): Proactive initiatives of the Andhra Pradesh Government and potential to sustain long term IT growth have transformed Hyderabad to become India's leading IT hub, according to a report released today jointly by the Information Technology and Communications Department, Government of Andhra Pradesh and Jones Lang LaSalle Meghraj.
The report "Andhra Pradesh - The chosen destination for IT" was released by the State Chief Minister Dr. Y S Rajasekhara Reddy, and Anuj Puri, Chairman and Country Head, Jones Lang LaSalle Meghraj, at the Hyderabad IT Summit 2008.
Andhra Pradesh earns the fourth largest revenues in IT exports amounting to INR 1.85 billion, accounting for about 15 per cent of the total IT/software exports from India.
Andhra Pradesh continues to be a significant contributor towards India's economic growth. Beginning with the government's initiative towards the development of the successful Hitec City in Hyderabad and policy initiatives aimed at bolstering investment, IT development is gradually spreading to other cities within the state. Moreover, the Andhra Pradesh government is now looking proactively at foraying into sunrise IT sectors such as KPO along with Animation and Gaming.
According to the report, the Indian real estate market is not only growing in terms of pace, but also in scale. Real estate growth engines are no longer in cities such as Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata and Pune.
The smaller cities are now expected to be the growth drivers over the next decade. More that a dozen Tier III cities compete with each other to attract developers, investors and occupiers. The smaller cities in Andhra Pradesh will have an advantage due to relentless government support.
Anuj Puri, Chairman and Country Head, Jones Lang LaSalle Meghraj said, "The IT boom has had a significant impact on real estate development in Andhra Pradesh. The state offers tremendous development potential with Hyderabad at the epicenter of IT growth, followed by emerging cities such as Visakhapatnam, Vijayawada and Tirupati."
"The state's initiatives and strategies for infrastructural development, human resource development and policy framework to support and attract investments have helped it become an attractive investment destination for developers and occupiers. From the positive growth momentum built by the government, Andhra Pradesh is steadily placing itself firmly on the global business map," he added.
Other salient points from the report include:
Andhra Pradesh has the highest number of SEZs approved by the central government for the IT sector (as of 31st December, 2007). It is expected to get a total of 71 SEZs which will create overall jobs for more than 2.5 million people
Digital Entertainment City is envisaged to be developed as the largest animation and gaming hub in South Asia and will be developed through private-public partnership. The city will have world class in facilities and incubation centers
With relatively lower rental and commercial values when compared to major cities, Hyderabad is still affordable in terms of real estate costs and living
A new ICT (2005-2010) is in place to make Andhra Pradesh the most attractive and preferred destination for the IT Companies.
Overall, the report concludes that buoyed by significant infrastructure development and the emergence of Hyderabad as the prime IT hub of Andhra Pradesh, the government has identified the IT sector as one of the most important economic drivers for the state. Andhra Pradesh with its strong focus on policy and overall development presents a compelling investment opportunity.