Andhra Pradesh Emerges as a Preferred Investment Hub, Says Janardhan Reddy
- ByStartupStory | January 5, 2026
Andhra Pradesh is fast becoming a top destination for investors in India, driven by proactive policies, infrastructure expansion and a business-friendly environment, according to B.C. Janardhan Reddy, the state’s Minister for Roads & Buildings, Infrastructure and Investments. Speaking in the Andhra Pradesh Assembly, the minister outlined the government’s focus on attracting new capital and accelerating industrial growth across sectors.
Janardhan Reddy highlighted the state’s strategic advantages including its long coastline, extensive connectivity through ports and airports, and steady reforms aimed at simplifying doing business as key reasons firms are choosing Andhra Pradesh for new projects. He emphasised that the government’s policies are designed to reduce procedural delays and offer investors a predictable regulatory environment.
The minister’s remarks come against a backdrop of recent data showing Andhra Pradesh capturing a significant share of national investment intentions. A Bank of Baroda report found that the state accounted for about 25.3 per cent of all proposed investment projects in India between April and December 2025, far ahead of competitors such as Odisha (13.1 %) and Maharashtra (12.8 %). This share translates into around ₹6.7 lakh crore worth of planned investment announcements, underscoring the state’s growing appeal among domestic and global companies.
Janardhan Reddy drew attention to Andhra Pradesh’s efforts to bolster infrastructure and industrial corridors that improve connectivity and reduce logistics costs, making it a more attractive base for manufacturing and services. The state has been active in securing large-scale investments in sectors such as information technology, electronics manufacturing, renewable energy and petrochemicals, with significant projects planned in Visakhapatnam, Rayalaseema and other regions.
In recent months, Andhra Pradesh has also rolled out targeted policies to tap into emerging industries. For instance, it introduced a comprehensive maritime policy to build a shipbuilding cluster along the coast, offering fiscal incentives, tax reimbursements and single-window approvals to lure businesses to the sector. The plan, paired with a proposed shipbuilding cluster at Dugarajapatnam, which could generate nearly 1.48 lakh jobs, reflects the state’s strategy to position itself as a leader in maritime and related manufacturing.
Private sector interest has been growing. Companies such as Garuda Aerospace have announced investment plans in Andhra Pradesh, and major corporations from across industries
are exploring opportunities in the state’s industrial zones. Officials believe that continued policy support and infrastructure improvements will help convert MoUs and announcements into real economic activity and jobs.
The government’s commitment to speedy clearances and reforms is also being recognised by investors. By pushing for quicker decision-making, streamlined land allotment processes and enhanced utility access, Andhra Pradesh’s leadership aims to make the state a predictable and attractive option for project implementation, something industry leaders say is crucial for long-term planning.
Moreover, the state’s performance on investment share highlights a broader trend in India’s economic geography, as capital flows diversify beyond traditional industrial centres. Analysts note that Andhra Pradesh’s focus on digital infrastructure, logistics networks and renewable energy capacity aligns with national priorities and helps draw both domestic and global firms seeking growth opportunities.
Janardhan Reddy’s comments reinforce this narrative, positioning Andhra Pradesh not merely as an alternative investment location but as a preferred destination for long-term industrial and economic expansion.
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