From Western Australia to India: Visakhapatnam Diaries

“Andhra Pradesh (AP), on India’s southeast coast, ranks among India’s most business-friendly and one of India’s fastest growing states. Since AP’s bifurcation into two separate States of Telangana and AP in 2014, the State government is aggressively promoting a range of sectors, including agriculture (employing 62 per cent of the State’s population), horticulture, aquaculture, food processing, life sciences, textiles, electronics and IT, aerospace and defence, automobiles and auto-components, petroleum, chemicals, energy, and mining. AP has been one of the foremost States to have developed sector-specific policies. The State’s single window clearance system has been regarded a model for other States. Forming industrial clusters and developing infrastructure, such as biotech parks, textile parks and hardware parks has been the State's key strategy to attract investments in various industries. AP provides ample growth opportunities due to availability of ports, large parcels of land for expansion, etc.” – India Economic Strategy, 2035

The third leg of Western Australia (WA) business delegation, after Delhi and Mumbai was the largest city in AP, Visakhapatnam, the bustling home of two major ports that connect India to the world, and India’s first naval base.

In 2016, WA entered into a sister state relationship with AP. Like WA, AP is a mining, energy, and agricultural State, that is home to major naval facilities. WA’s re-affirmed sister State memorandum of understanding (MoU) with AP outlines a specific framework for economic and governance cooperation, in mining & mining services, energy production, agriculture & fisheries processes, and education & training. ?

For WA, AP offers expanded opportunities in resources and energy, especially as the proposed LNG terminals in Kakinada and Krishnapatnam approach completion. It’s also home to a growing agricultural sector, with opportunities for advanced dairy production, sustainable fisheries, and aquaculture management. AP accounts for a major share in the overall exports of seafood products from India, in value terms. In FY22, AP ranks first in terms of marine exports from India with a 38% contribution to the US$7.74 billion of total marine exports. A 974-km long coastline provides numerous opportunities for the State to develop several ports. The Visakhapatnam port ranks third in India in terms of port traffic. In FY22, the traffic handled at the port was over 69 million tonnes.

AP offers opportunities in education and research, with the development of India’s first manufacturing hub for medical devices being established in the Andhra Pradesh MedTech Zone (AMTZ) at Visakhapatnam, and world-leading investment in the emerging green energy sector.

AMTZ was set up to reduce the cost of healthcare at a time when India was importing 75 per cent of medical devices required by it. Made in lockdown, in a record time of 342 days, AMTZ showcases modern India as a leader in the med-tech global stage. It produced over 100 ventilators, 500 oxygen concentrators, and 1 million RT PCR kits every day during COVID. It has also won accolades for innovations such as mobile container hospitals, mobile RT-PCR vehicles, and mobile oxygen plants. AMTZ has common manufacturing facilities along with scientific infrastructure including specialised labs, testing centres and warehouses, Centre for Electromagnetic Compatibility and safety testing, Gamma Irradiation Center, Center for Biomedical Testing, Center for 3-D Printing, Center for Lasers, MRI Superconducting Magnets, Gamma Irradiation Center, Mold & Machining Center and other service centres. AMTZ has superior facilities for making medical devices than China’s Shanghai MedTech Zone and UAE’s Jebel Ali Free Zone.

In May this year, AP was also announced as the location of the world’s largest and first-of-its-kind single-location, integrated renewable energy storage project. This project, to be completed in 2023, will help the country avoid emissions of 15 million tonnes of CO2 annually (equivalent to 3 million cars).

The recent interim free trade agreement between Australia and India, called the Australia India Economic Cooperation and Trade Agreement (AI-ECTA), gives further impetus to harness the complementary nature of WA-AP economies in areas such as critical minerals, professional services, education, and tourism.

Andhra Pradesh Economic Development Board (APEDB) nodal agency to accelerate the inclusive economic growth of Andhra Pradesh, focussed on facilitating investment, reforms, and competitiveness in the State, and provided a thorough assessment of diverse sectoral opportunities existing between AP and WA. Events at Visakhapatnam saw ministerial engagements with Industries, Infrastructure, Investment & Commerce, Information Technology, Finance & Planning, Commercial Taxes, Legislative Affairs, Skill Development & Training among others. Eight MoUs between both states were signed in the areas of international education and skills cooperation, battery materials supply chain ecosystem, space technology, medtech, skill and training, seafood cooperation, and fisheries sector.

The choice of sectors by the Department of Jobs, Tourism, Science, and Innovation (JTSI) for this business delegation visit is equally strategic. Innovation and Smart Cities vertical signifies Australia’s potential in aligning with the 3rd largest ecosystem for start-ups globally. India is home to 100+ unicorns with a total valuation of over US$300 billion. Innovate, co-create, and collaborate are the mantra for bilateral engagement in the innovation domain. India is betting on smart technologies to use its resources as well as plan its infrastructure development in a more sustainable and efficient way. Similarly, energy is central to achieving India's development ambitions. It provides a market for services and technologies that improve energy efficiency and the uptake of renewables. India’s electric mobility, renewables, and advanced manufacturing ambitions are generating strong demand for critical minerals and rare earths. With India’s New Education Policy, significant skills demand and growth in India’s education technology industry have opened partnership opportunities.

The visit categorically signifies that central to WA’s economic diversification ambitions is State’s strategy to diversify its international economic relationships. Both market diversification and sector diversification are required to help secure WA’s prosperity in an increasingly uncertain global economic environment.