AP Innovation & Startup Policy 4.0 (2024-29) – Startup Incentives

The Andhra Pradesh Innovation & Startup Policy 4.0 (2024-29) aims to foster 20,000 new startups and generate 100,000+ jobs. It features rigorous financial subsidies and capacity-building incentives, ranging from seed grants of ₹15–20 Lakhs to up to ₹1 Crore in funding for Deeptech ventures . Comprehensive startup support under APIS policy 4.0: fiscal incentives including capital subsidy (12% of FCI + 5% additional for women/backward communities), SGST reimbursement (100% for 5 yrs), employment subsidy (8-10% of FCI), and incubation support at APIS centres.  The Andhra Pradesh Innovation & Startup Policy 4.0 (2024–2029) is a comprehensive government framework created to make Andhra Pradesh a leading startup and innovation hub in India. 

The policy provides financial incentives, infrastructure support, tax benefits, and incubation assistance to startups and entrepreneurs.

Main Objectives:
Promote innovation-driven entrepreneurship.
Create employment opportunities.
Attract investment into Andhra Pradesh.
Encourage technology commercialisation.
Support women and socially disadvantaged entrepreneurs.
Financial Incentives
Capital Subsidy

Eligible startups receive:
12% of FCI

Additional support:
+5% for women/backward communities

Where FCI means Fixed Capital Investment.

SGST Reimbursement

Eligible startups may receive:
100% SGST reimbursement for 5 years

This significantly reduces operational costs during early growth stages.

Employment Subsidy

Employment-linked incentives include:
8%−10% of FCI

to encourage job creation.

Infrastructure Support

The policy supports:

Startup parks.
Innovation hubs.
Incubation centres.
Co-working spaces.
Research infrastructure.
Additional Startup Support
Incubation Assistance

Startups receive:

Mentorship.
Technical guidance.
Product development support.
Investor Access

Facilitates connections with:

Angel investors.
Venture capital funds.
Corporate innovation programs.
IP & Legal Assistance

Support for:

Patent filing.
Legal structuring.
Compliance guidance.
Priority Sectors

The policy especially encourages:

DeepTech.
AI & ML.
Agritech.
HealthTech.
FinTech.
Electronics manufacturing.
Sustainability startups.

Startup registered in Andhra Pradesh; DPIIT-recognised; up to 10 years old; innovative technology focus; not exceeding ₹100 Cr turnover; incorporated under Indian Companies Act/LLP/Partnership.

Apply via AP Startup One Portal (single-window). File application through APIS or RTIH/spoke incubators. Applications forwarded to nodal agency with letter of recommendation.