Economy
From a hamlet of local fishing communities during the early days of the Indian independence struggle and a few decades later, Visakhapatnam grew economically; the rise has been so quick that the city was identified as one of the fastest-growing in the world, economically and demographically. Several factors contributed to its economic growth, including the natural harbour, its location between Madras and Calcutta, access to NH5 and a developed network of railways which changed the hamlet into an industrial city. It has developed into a hub for heavy industry. The Visakhapatnam Port (the largest in the country) was a gateway contributing to the development of the petroleum, steel and fertilizer industries. The Visakhapatnam Steel Plant (recently expanded from 3.1 to 6.3 million ton in its daily cargo handling capacity) and Hindustan Petroleum were the two multi-billion-dollar investments that put Visakhapatnam on the industrial map. The city has two N.T.P.C. power plants to fill its power needs. Visakhapatnam also hosts the headquarters of the Dredging Corporation of India.
It is a hub for iron ore and other mineral exports; ore from Andhra Pradesh, Orissa, Chattisgarh, Jharkhand and Madhya Pradesh is transported to Visakhapatnam by rail and road transport. From the port, minerals are exported by ship to China and other countries. Visakhapatnam district and its surrounding area have bauxite reserves of 1,000 MT, manganese ore and titanium reserves in its beach sand.
Visakhapatnam also owes its economic growth to the availability of an educated English-speaking workforce; English is the first language in many institutions of higher education in the city. The availability of an educated workforce allowed information technology enabled services (ITES) companies such as Encore India HSBC, IBM Daksh, Sutherland and Acclaris to flourish. The city has 102 small and medium software and call-centre companies, of which about 10 began operations from 2005–2007. Software exports from Visakhapatnam in 2007 were worth 245 crore (US$45 million) and 502 crore (US$91 million) in 2008, 1,000 crore (US$182 million) in 2011 — an increase of nearly 90% each year.
National and international IT and banking firms (such as IBM, Mahindra Satyam, Kenexa, Infotech, Softsol, and Miracle Software) have opened offices in the city. The Andhra Pradesh government provided infrastructure and land for these companies to set up their development centres in the city's outskirts. The government has established an IT special economic zone in the Rushikonda Hills in Visakhapatnam. The growing population and economy have resulted in rising real estate prices, with prices at some locations in the city quadrupling in a short time. Real-estate companies are building housing projects in the city's outskirts.
Many residential townships are coming up in this area. This initiative by property developers will extend the CBD of VIZAG up to 10 km from the base point.
The fishing industry is also growing, with domestic and exported tuna doubling in a decade. The city has two ports: Visakhapatnam Port (opened in 1933) and Gangavaram Port (opened in 2008, 15 kilometres (9.3 mi) from Visakhapatnam Port). Gangavaram Port began with an investment of US$2 billion; it is the deepest port in the country, with the ability to handle large international vessels. Visakhapatnam Port is also expanding and plans to open a satellite port at Bhimili, 20 kilometres (12 mi) away.
Visakhapatnam has the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) special economic zone (covering 5,770 acres (23.4 km2) and occupied by WS Industries, Pokarna Limited, Uniparts, Confidence Petroleum, Southern Online Bio, Nagarjuna AgriChem, Anjaney Alloys, Maithon Alloys and Abhijit Ferro Alloys) at Autonagar, Atchutapuram. A railway line is under construction connecting the industrial zone with the Gangavaram Port. The Visakhapatnam Special Economic Zone began in 1989; exports from the VSEZ totaled approximately 1,582 crore (US$288 million) in 2011.
Brandix Apparel City is in operation in Atchutapuram. This is a textile-based SEZ covering 1,000 acres (4.0 km2). The aim of this project is to provide 60,000 local jobs. It is expected that exports will reach 5,500 crore (US$1 billion) when fully operational. The SEZ has foreign textile manufacturers, including Pioneer Elastic Fiber, Ocean India, Quantum Clothing, Fountain Set Group and Limited Brands.
Pilkington (an automotive-glass manufacturer) and Jawaharlal Nehru Pharma City (JNPC) are also in Visakhapatnam. JNPC is the only pharmaceutical SEZ in India, with 38 pharmaceutical companies including PharmaZell of Germany and Eisai Pharma of Japan. U.S.-based Hospira Chemicals has purchased land for a plant in the city.
Companies such as Reliance, Brandix and HPCL have purchased areas in special economic zones (SEZs) for their industries. Aluminium refineries (such as Anrak Aluminium and Jindal Aluminium) are developing in Visakhapatnam because of the bauxite reserves around the city. Bhabha Atomic Research Centre (BARC) plans its second research facility in the country (after Trombay) in the area. Visakhapatnam was one of five sites in the country selected to hold strategic crude-oil reserves in case of a national emergency.
Other industries include Hindustan Zinc, GAIL, IOC Bottling Unit, BPCL Bottling Unit, Synergies Castings, Rain Calcining Limited, Coromandel Fertilizers, Hindustan Ship Yard, Bharat Heavy Plate and Vessels Limited (BHPV), Visakha Dairy, Vizag Profiles, Essar Pellet Plant, Andhra Polymers (now LG Polymers), Andhra Cement, Andhra Petrochemicals and Andhra Ferroalloys. The prevalence of ferroalloy plants is due to the availability of manganese ore near Visakhapatnam. The city is the headquarters for the Waltair division of the East Coast Railway. The division generated 3,483 crore (US$634 million) in revenue in 2009–2010, one of the highest-grossing industries in the country.
Visakhapatnam's traditional importance in shipbuilding is demonstrated by the fact that India's first ship (the Jala Usha) was launched there. It is one of India's largest fishing ports, has a dedicated harbour for the fishing industry and handles a large percentage of India's seafood exports.
The Bhabha Atomic Research Centre (the second centre in India, after Mumbai) is completing a permanent facility in Autonagar which will include a school dedicated to nuclear-power technology. Visakhapatnam also has offices of the National Institute of Oceanography and the Indian Meteorological Department.
APIIC has authorized Unitech Limited to construct a Knowledge City on an area of 700 hectares (2.7 sq mi), with an investment of 35,000 crore (US$6 billion). Although with Unitech Limited being involved in the 2G spectrum scam, the Andhra Pradesh government has scrapped the plan as of June 2012; future course of action is unkwnown.
Read more about this topic: Visakhapatnam
Famous quotes containing the word economy:
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)
“It enhances our sense of the grand security and serenity of nature to observe the still undisturbed economy and content of the fishes of this century, their happiness a regular fruit of the summer.”
—Henry David Thoreau (1817–1862)
“The basis of political economy is non-interference. The only safe rule is found in the self-adjusting meter of demand and supply. Do not legislate. Meddle, and you snap the sinews with your sumptuary laws.”
—Ralph Waldo Emerson (1803–1882)