Industrial R&D in Andhra Pradesh – A Note 

Andhra Pradesh is traditionally an agricultural state with rice as one of its prime products. Its industrial input to the economy comes from steel, mining, pharmaceuticals, fertilizers, and more recently substantiated by the IT sector. 

Pharma sector takes a prime of place in Andhra Pradesh with Dr. Reddy’s Labs and several other minor operators on the scene. 

Top 20 Industrial Sectors in A.P.on Turnover

Industry

Industry turnover

R&D Rs. Crores

Steel

7937.05

5.53

Computers

6928.06

30.75

Mining

6202.64

6.25

Pharmaceuticals

5971.31

373.22

Fertilizers

4668.22

0.5

Cement

2819.89

0.92

Textile

2089.9

0.3

Solvent Extraction

2038.48

0.67

Power

1737.01

0.16

Paper

1505.13

1.33

Domestic Appliances

1027.44

0.13

Diversified

909.29

1.4

Telecommunications

860.54

9.36

Electronics

855.7

47.22

Ferro alloys

746.43

2.96

Chemicals

671.87

0.51

Cigarettes

557.38

2.24

Electric

520.92

1.62

Pesticides

506.23

2.27

Industrial Sectors in A.P. with R&D Spend of Over Rs. 1 crore 

Industry

Industry turnover

R&D

Rs Crores

R&D Intensity

Pharmaceuticals

5971.31

373.22

6.25

Electronics

855.7

47.22

5.52

Computers

6928.06

30.75

0.44

Telecommunications

860.54

9.36

1.09

Mining

6202.64

6.25

0.10

Steel

7937.05

5.53

0.07

Ferro alloys

746.43

2.96

0.40

Pesticides

506.23

2.27

0.45

Cigarettes

557.38

2.24

0.40

Electric

520.92

1.62

0.31

Diversified

909.29

1.4

0.15

Paper

1505.13

1.33

0.09

An analysis of industrial in-house R&D in Andhra Pradesh indicates that the pharmaceutical sector stands first in R&D expenditure. Pharmaceutical sector contributes 8.35% to the total industrial turnover of the state, with the total turnover from the sector being Rs. 5971.31 crores. Rs 373.22 crores of it is spend on R&D. It indicates that on the whole the R&D intensity in Pharmaceuticals in Andhra Pradesh is as high as 6.25%. 

Electronics, which is the fastest developing and most sought after industry today, ranks second in R&D expenditure in Andhra Pradesh. With a total turnover of Rs. 855.7 crores, it spends Rs. 47.22 crores on R&D. The R&D intensity of Electonics industry is 5.51%.

Electronics Industry accounts for about 1.19% of the total industrial turnover of the state. Computers Industry comprising both software and hardware, which is the backbone for the emerging Information Technology is the third largest spender in R&D in Andhra Pradesh. The total turnover of the industry amounts to Rs. 6928.06 crores of which Rs.30.75 crores is spent on R&D. the R&D intensity of the industry accounts to 0.44%. 

Other sectors make a very poor contribution to in-house R&D in their respective sectors.

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