Andhra Pradesh has emerged as India’s leading investment destination in FY26, securing 25.3% of the country’s total proposed investments during the first nine months (April–December 2025), according to a Bank of Baroda report. This positions the state ahead of other top contenders like Odisha (13.1%) and Maharashtra (12.8%).
The report shows that total proposed investment announcements across India reached approximately ₹26.6 lakh crore in this period, marking an 11.5% increase compared with the same period last year. Most of the investment proposals are driven by the private sector, which accounts for nearly 90% of the total, while government-led investments make up the remaining 10%.
A significant surge in announcements came in the October–December 2025 quarter, with proposals worth nearly ₹10 lakh crore, reflecting growing investor confidence. Key sectors attracting investment in Andhra Pradesh include infrastructure, electricity, renewable energy, chemicals, metals, IT, and transport services, which together constitute the bulk of proposed capital expenditure.
State authorities attribute this remarkable performance to investor-friendly policies, fast-track approvals, and ease-of-doing-business measures. Focused development in IT, electronics, manufacturing, logistics, energy, and digital infrastructure has drawn attention from both domestic and international investors.
Together with Odisha and Maharashtra, Andhra Pradesh now accounts for more than half of India’s proposed investments, highlighting a trend toward the eastern and southern regions as emerging investment hubs. Officials note that converting proposals into actual projects will be crucial for generating jobs and boosting economic growth.
Experts believe Andhra Pradesh’s ability to maintain policy stability, encourage private participation, and offer a predictable business environment will be key to sustaining this momentum throughout FY26 and beyond.
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