Investment Landscape in India
Amaravati, Andhra Pradesh has emerged as the leading investment destination in India, capturing 25.3% of all proposed investments in the first nine months of FY26, according to a Bank of Baroda report.
- Andhra Pradesh is ahead of Odisha (13.1%) and Maharashtra (12.8%), indicating a shift in industrial focus towards the eastern and southern regions.
- More than half (51.2%) of India's total proposed capital investment is concentrated in Andhra Pradesh, Odisha, and Maharashtra.
- Nationwide, investment announcements reached Rs 26.6 lakh crore, marking an increase of 11.5% year-on-year.
Factors Driving Investment
The report attributes the positive investment trends to government policies focusing on:
- Increased capital expenditure (capex).
- Lowering of income tax rates and implementation of GST 2.0.
- Reduction in interest rates to stimulate investment activity.
Sectoral Distribution of Investments
- Power sector: Dominant with a 22.6% share, led by renewables.
- Metals: Account for 17.3%, important for capital formation.
- Construction: Maintains a steady 4% share, covering both housing and commercial projects.
- Significant investments are also observed in roads and ports due to government capex initiatives.
State-wise Investment Distribution
- Top states: Andhra Pradesh (25.3%), Odisha (13.1%), Maharashtra (12.8%), Telangana (9.5%), Gujarat (7.1%).
- These states collectively account for about 68% of total investments.
- Others: Tamil Nadu (4.9%), Rajasthan (4.3%), Chhattisgarh (3.9%), Madhya Pradesh (3.2%), Uttar Pradesh (2.7%).
Andhra Pradesh's Strategic Approach
Andhra Minister Nara Lokesh emphasized that Andhra Pradesh is pulling ahead due to:
- Consistent reforms and quick decision-making.
- Favorable policy environment and infrastructure development.
- Focus on manufacturing, renewable energy, electronics, data centers, mobility, and core infrastructure.
The state prioritizes job creation and swift on-ground project initiation, positioning itself as a key driver of India's industrial growth and a model for competitive governance.
