Why in News?
Andhra Pradesh has emerged as India’s leading investment destination in FY26. It accounts for 25.3 per cent of total proposed investments during the first nine months of the fiscal year. This data is according to a Bank of Baroda report.
Bank of Baroda Report Highlights Surge
The Bank of Baroda analysis shows a notable concentration of proposed investments in a few states during the first three quarters of FY26:
- Andhra Pradesh: 25.3% (highest share)
- Odisha: 13.1%
- Maharashtra: 12.8%
Together, these three states accounted for 51.2 per cent of total proposed investments in India.
Overall, investment announcements rose 11.5 per cent year-on-year, reaching ₹26.6 lakh crore, indicating resilient investor sentiment despite global uncertainties.
CM Naidu Credits Policy Reforms
Chief Minister N. Chandrababu Naidu attributed Andhra Pradesh’s performance to governance reforms focused on “Speed of Doing Business”.
Key measures highlighted include:
- Escrow-based incentive disbursal, ensuring transparency and timely payments
- Sector-specific industrial policies providing clarity to investors
- Streamlined approvals and improved administrative coordination
These reforms have strengthened investor confidence and reduced execution-related risks.
Regional Shift in Industrial Momentum
The data reflects a structural shift in India’s investment geography:
- Telangana: 9.5%
- Gujarat: 7.1%
- Tamil Nadu: 4.9%
- Rajasthan: 4.3%
- Chhattisgarh: 3.9%
In contrast, traditionally large states such as Uttar Pradesh (2.7%) and Karnataka (2.1%) recorded comparatively lower shares, indicating a redistribution rather than decline in national investment activity.
Outlook for Sustained Growth
The Andhra Pradesh government views the achievement as a foundation for long-term growth, not a culmination. Emphasis remains on:
- Strengthening public–private partnerships
- Expanding industrial impact across regions
- Ensuring policy stability and execution efficiency
Sustained reform momentum will be crucial in converting proposed investments into realised assets and employment.
Conclusion
Andhra Pradesh’s rise as the top investment destination highlights state-level policy innovation. This plays a crucial role in India’s economic growth story. The trend also highlights a gradual but decisive rebalancing of industrial development across regions.
Exam-Oriented Facts
- Andhra Pradesh share in proposed investments (FY26, 9 months): 25.3%
- Total proposed investments in India: ₹26.6 lakh crore
- YoY growth in investment announcements: 11.5%
- Top three states’ combined share: 51.2%
- Report source: Bank of Baroda
- Focus area: Speed of Doing Business & industrial reforms
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