The Information Technology and IT-enabled service exports from Andhra Pradesh are poised to touch Rs 19,000 crore (Rs 190 billion) in 2006-07, registering a growth of 51 percent over the previous year, Chief Minister Dr Y S Rajasekhar Reddy said.

Reviewing the flow of investments into the state during 2006, Dr Reddy said that AP had joined the billion dollar export club in 2005-06 by clocking exports of Rs 12,521 crore (Rs 125.21 billion) with a growth of 51 percent. Companies in the state contributed 12.40 percent to overall IT exports from India.

Refuting opposition allegations that the IT sector is ignored or given a back-seat, he said that this sector has a high employment potential for engineering graduates emerging from over 275 collages in the state. The state has attracted 354 IT companies since 2004, with total investment of 10,442 crore (Rs 104.42 billion) and jobs for 65,854 software engineers.

"We have outperformed the previous (Telugu Desam Party) regime in IT sector both in terms of number of companies, investment and employment. During the nine-year TDP rule, Rs 3,533 crore (Rs 35.33 billion) of investment and 85,945 IT jobs were created in the state," he said and pointed out that the total employment in IT sector reached 1,51,789 now.

The IT policy is aimed at creating 2.35 lakh jobs by 2009. The 24 special economic zones in the IT sector are expected to generate 7.60 lakh jobs in the next five years.

The Chief Minister also claimed that the "leapfrog transformation of the investor-friendly environment brought about by the Congress government has helped the state in attracting investment proposals of Rs 87,290 crore (Rs 872.90 billion) since 2004. In the last two and a half years, 3,670 industrial units with an investment of Rs 5,163 crore (Rs 51.63 billion) were grounded in the state and provided employment to 70,330 persons."

As many as 192 large and medium industrial projects with investment of Rs 4,484 crore (Rs 44.84 billion) and jobs for 22,892 persons and 3,478 small scale industrial units with investment of Rs 679 crore (Rs 6.79 billion) and jobs for 47,438 persons were set up in the state.

The state also attracted 41 mega manufacturing and infrastructure projects with a total investment of Rs 73,645 crore (Rs 736.45 billion) and an employment potential for one lakh people. These projects are being grounded in a phased manner in the next three to four years.

"AP has bagged the second position in attracting investments in the last two years due to its policy initiatives which have made the state a choice destination for investment by the manufacturing sector. The new industrial policy pursued by our government for providing an investor friendly environment has made the state attractive not only to domestic sector but also MNCs in the manufacturing field," Dr Reddy said.

These initiatives included reduction in power tariff for industrial sector, curtailing the red-tape, faster approvals and decisions on land allotments and exemptions in sales tax etc.