Andhra Pradesh Leads India’s Investment Race in FY26

Andhra Pradesh has emerged as India’s leading investment destination in the current financial year. According to a recent report, the state has attracted the largest share of proposed capital investments, reflecting rising investor confidence. Strong government policies, focus on infrastructure, and faster approvals have helped Andhra Pradesh move ahead of traditional industrial states and signal a shift in India’s growth geography.

Why in the News?

As per a Bank of Baroda report, Andhra Pradesh secured 25.3% of India’s total proposed investments in the first nine months of FY26, the highest among all states.

Investment Performance Overview

• The state has taken a clear lead in proposed capital investments.
• Andhra Pradesh captured 25.3% of total proposed investments in FY26 so far.
• It moved ahead of Odisha (13.1%) and Maharashtra (12.8%).
• Nationwide investment announcements touched ₹26.6 lakh crore, up 11.5% year-on-year.
• Andhra Pradesh, Odisha, and Maharashtra together account for over 51% of total proposals.
• This reflects growing investor confidence in eastern and southern India.

Key Sectors Driving Investments

• Strong interest seen in power, metals, and infrastructure.
• Power sector dominates with 22.6% share, led by renewable energy projects.
• Metals account for 17.3%, supporting roads, housing, and automobiles.
• Construction maintains a steady 4% share.
• Roads, ports, and logistics benefit from the government’s capex push.
• Manufacturing, electronics, data centres, and mobility are emerging focus areas.

Policy Support and Economic Context

• Government reforms have boosted investment intentions.
• Higher public capital expenditure encouraged private investments.
• Lower income tax rates and GST reforms (GST 2.0) improved business sentiment.
• Falling interest rates supported borrowing and project expansion.
• Policy measures helped offset the impact of higher US tariffs on exports.
• Predictable regulations reduced uncertainty for long-term investors.

Role of State Government Initiatives

• Andhra Pradesh focused on speed, scale, and certainty.
• Fast-track approvals and investor-friendly policies were prioritised.
• Sector-specific strategies helped attract targeted investments.
• Infrastructure development in ports, corridors, energy, and digital networks expanded.
• Strong connectivity improved logistics and export potential.
• Job creation and quick project execution remain key goals.

Key Summary at a Glance

Question

Q. Which state attracted the highest share of proposed investments in FY26?

A. Maharashtra
B. Odisha
C. Gujarat
D. Andhra Pradesh