Andhra Pradesh has become India’s leading investment destination, securing 25.3% of all proposed investments in the first nine months of FY26, according to a Bank of Baroda report.
The state has moved ahead of Odisha at 13.1% and Maharashtra at 12.8%, indicating that industrial growth is increasingly shifting toward eastern and southern regions.
Andhra Pradesh Emerges as India’s Top Investment Destination, Leading FY26 Proposals
The report states that Andhra Pradesh, Odisha, and Maharashtra together account for 51.2% of India’s total proposed capital investments.
Across the country, total investment announcements reached ₹26.6 lakh crore during this period, reflecting an 11.5% increase compared to the previous year.
The report noted, “There are clear signs of a pick-up in investment intentions in the country this year,” attributing this rise to a strong government policy package focused on capital expenditure, reduced income tax rates, and GST 2.0 reforms.
It added that these policy measures have partly offset the effects of higher tariffs imposed by the United States on Indian exports.
Report Highlights Falling Interest Rates as a Boost to Investment Activity
The report also pointed out that declining interest rates have contributed to encouraging more investment activity.
It further stated, “The investment environment does appear to be positive in the present financial year.”
The power sector holds the largest share of investments at 22.6%, with renewable energy projects leading within this category.
The metals sector accounts for 17.3% of investments, supporting capital formation for infrastructure such as roads, automobiles, and housing.
Construction investment remains steady at 4%, covering both housing and commercial projects.
Increased government spending on capital projects is reflected in strong investor interest in roads and ports.
On state-wise performance, the report said, “Andhra Pradesh has the highest share of 25.3%, followed by Odisha with 13.1%, Maharashtra with 12.8%, Telangana with 9.5% and Gujarat 7.1%.”
These five states together make up about 68% of total proposed investments.
Other states receiving notable investment interest include Tamil Nadu (4.9%), Rajasthan (4.3%), Chhattisgarh (3.9%), Madhya Pradesh (3.2%), and Uttar Pradesh (2.7%).
Reacting to the achievement on social media platform X, Andhra Minister Nara Lokesh said, “Andhra Pradesh isn’t catching up, it’s pulling ahead.”
He credited this performance to consistent reforms, fast decision-making, and a clear commitment to investors.
Lokesh stated that the government’s focus has been to create predictable policies, support large-scale industry, and deliver results on the ground.
The state government attributes its success to investor-friendly policies, fast-track project approvals, sector-specific strategies, and strong infrastructure development in ports, industrial corridors, logistics, energy, and digital networks.
Key sectors drawing investment include manufacturing, renewable energy, electronics, data centers, mobility, and core infrastructure.
Industry experts believe Andhra Pradesh’s rising share of national investments signals a broader shift in India’s growth landscape, positioning the state as a top choice for companies seeking scale, connectivity, and long-term policy stability.
Lokesh reaffirmed that the government will continue building long-term partnerships with investors, prioritize job creation, and ensure investments quickly turn into on-ground projects.
He emphasized, “Every investment announcement must translate into factories, jobs and economic opportunity for our people.”
With this performance, Andhra Pradesh has strengthened its position as a key driver of India’s next stage of industrial growth and as a model for competitive, reform-focused governance.
