Lokesh Says AP Building Resilient Innovation Ecosystem Through Reforms

The minister, who also handles the IT and electronics portfolio, interacted with technology leaders at a session in Davos on Wednesday.

Speaking at the World Economic Forum session titled “Where Capital Lands: Anchoring Investment for Resilient Innovation” at the Davos Congress Village, Lokesh said attracting investment was not merely about bringing companies to a region but about building a stable, trusted ecosystem where innovation could flourish with long-term commitment, capacity and policy certainty.

Lokesh noted that AP, emerging as a “preferred investment destination”, was moving away from short-term incentives and focusing on structural reforms that ensured sustainable growth. “The state has established the Ratan Tata Innovation Hub to promote startups and is making direct investments in research and development.”

As part of this effort, he said, AI Centres of Excellence are being set up in Visakhapatnam in partnership with global technology leaders such as Google Cloud, Cisco and L&T Technology Services, enabling ideas to rapidly transform into scalable startups while strengthening the talent base.

Lokesh said the state firmly believed that local talent from AP could deliver solutions to global challenges. By integrating R&D within industrial clusters and investing consistently in human capital, the state was positioning itself as a reliable anchor for global partnerships, he said.

The minister highlighted the role of policy stability, digital governance and India’s first escrow mechanism for investors, all aimed at boosting confidence and supporting sustainable innovation.

Detailing the clean energy vision, the minister said AP had introduced an integrated clean energy policy with the objective of achieving clean energy targets by 2047. The state, he said, aims to attract investments of ₹10 lakh crore and generate 167 gigawatts of clean energy.

In frontier technologies, he said, Andhra Pradesh is developing a Quantum Valley for quantum computing, India’s first Drone City and dedicated Space Cities to strengthen advanced research and manufacturing.

Explaining the state’s three-pronged strategy — cluster-based development across sectors, strong linkages between industry and universities and skill institutions, and a focus on long-term value creation —Nara Lokesh said Andhra Pradesh was leveraging the triple-helix model involving government, industry and academia.

These measures have delivered concrete outcomes, with the state investment promotion board approving 211 projects worth ₹8.75 lakh crore (₹97 billion) in the last 18 months, potentially generating 8.36 lakh jobs, he said.

Touching on global challenges, Lokesh said geopolitical tensions, economic fragmentation and environmental crises were affecting innovation-driven capital flows.

Citing a report by the UN Conference on Trade and Development, he noted a sharp decline in infrastructure and renewable energy investments in developing countries in 2024, underscoring the urgent need for governments to step up public finance, strengthen innovation ecosystems and invest in skills for sustainable global growth.