Andhra Pradesh

Recent Developments in Key Sectors

• On September 10, 2025, Andhra Pradesh signed a memorandum of understanding (MoU) with the Vietnam Travel Association to boost tourism, particularly targeting Buddhist-circuit travellers from Southeast Asia.
• Andhra Pradesh has granted “Industry Status” to the tourism and hospitality sector across all segments, recognising its role in economic growth, job creation and regional development. Under the AP Tourism Policy 2024-29, the state will extend customised incentives to Mega and Ultra Mega projects to accelerate tourism infrastructure and investment.
• The state produced 4.13 million tonnes of fish and prawn in 2024-25 as compared to 3.71 million tonnes in 2022-23.
• In FY25, marine products exports from the state stood at about Rs. 28,466 crore (US$ 3.21 billion) while it touched Rs. 26,249 crore (US$ 2.96 billion) in FY24.
• Andhra Pradesh, contributing 41% of India’s fish production in 2022-23 and 7.4% of its GSDP, supports nearly 14.5 lakh people across nine coastal districts. With GST on fish oils, preserved products, gear, engines and chemicals cut to 5% from 12-18%, the state’s fisheries sector will see lower input costs and stronger competitiveness. Accounting for over 30% of India’s seafood exports, primarily through Visakhapatnam Port to the US, China, the EU, Southeast Asia and the Middle East, the reforms are set to enhance exports, improve affordability and sustain coastal livelihoods.
• As a part of Swarna Andhra @ 2047 initiative, the Andhra Pradesh Community Managed Natural Farming (APCNF) programme is gearing up towards coverage of all the Gram Panchayaths of the state, under Natural Farming by 2026-27 and the necessary field level strategies, action plans are being worked out. It is planned to enrol 41 lakh farmers with a practicing extent of 19 lakh Ha by 2028-29 under Natural Farming in AP.
• Andhra Pradesh achieved a CAGR of 8.80 % in the agriculture and allied sectors (excluding forestry and logging) during 2011-12 to 2020-21, as per the Economic Survey 2024-25.
• Pharmaceutical exports from the state stood at Rs. 24,298 crore (US$ 2.74 billion) in FY25.
• The Nakkapalli Bulk Drug Park in Andhra Pradesh, covering 2,001 acres and costing approximately Rs. 1,877 crore (US$ 211 million) is scheduled for Phase one completion by March 2026. The park aims to attract Rs. 11,542 crore (US$ 1.3 billion) in total investments and generate 54,000 jobs by providing common infrastructure for bulk-drug manufacturing.
• As per budget estimates FY26:
  • Education: Rs. 20,492 crore (US$ 2.40 billion) has been designated for teaching grants, while Rs. 2,335 crore (US$ 275.7 million) has been earmarked for the Samagra Shiksha initiative.
  • Roads and bridges: Rs. 1,968 crore (US$ 230.4 million) allocated towards capital outlay on roads and bridges.
  • Urban Development: Rs. 6,000 crore (US$ 702.3 million) allocated for Amaravati capital city development project.
• Rs. 4,000 crore (US$ 468.2 million) has been made for the Dr. Nandamuri Taraka Ramarao Vaidya Seva Trust, while Rs. 1,385 crore (US$ 162.1 million) has been designated for teaching hospitals.
• In July 2023, Union Minister for Road Transport and Highways, Mr. Nitin Gadkari, laid the foundation stone for three NH projects in Tirupati, Andhra Pradesh. These projects include the Naidupate-Turpu Kanupur Section of NH-71, spanning 35 km and requiring an investment of Rs. 1,399 crore (US$ 167.9 million), the Chillakuru Cross-Krishnapatnam Port South Gate Section via Turpu Kanupur on NH-516W, covering 36 km and valued at Rs. 909 crore (US$ 109.1 million), and the Thamminapatnam-Narikellapalle Section, which extends the Dedicated Port Road from Eupuru to Krishnapatnam Port on NH-516W and NH-67, with a length of 16 km and valued at Rs. 610 crore (US$ 73.2 million).

Under AP Mandal Connectivity and Rural Connectivity Improvement project (APMCRCIP), government proposed to improve roads and & bridges of major district roads/other district roads for a length of 728.59 km with Rs.1987.60 crore (US$ 239 million).

Under Major District Roads (MDR) 31 road works with a length of 174.77 km and 5 bridge works have been completed for an amount of Rs. 355.77 crore (US$ 42.8 million).

• Andhra Pradesh is home to many global and national pharma players, and various companies have set up their manufacturing hubs in different cities of the state. Pharmaceutical exports from the state stood at US$ 2,199.56 million in FY24.
  • Hyderabad has become one of the preferred destinations for global pharma biotech investments and has attracted around Rs. 7,500 crore (US$ 983.52 million) of investments in FY22, which is expected to result in employment for about 35,000 people. 
  • Under the Ayushman Bharat Digital Mission (ABDM), Andhra Pradesh has become the first state in the nation to connect the electronic health records of one crore people to the central database.
• The Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) is preparing to offer all of its services online in the near future. This will minimise the necessity for in-person meetings between the concerned entrepreneurs and officers. Additionally, it is creating a mobile application to make the services accessible on the go.
• The presence of rich climatic and soil conditions makes Andhra Pradesh a major agricultural belt. Few of the leading crops produced in the state include rice, chilly, oilseeds, cotton, pulses, and grams.
  • The cost of installing electricity meters for agricultural pump sets would be borne by the state government.
  • 52.38 lakh farmers received Rs. 7,016 crore (US$ 920 million) in financial assistance under the Rythu Bharosa scheme in 2021-22.
• Andhra Pradesh is home to a thriving fisheries industry and employs about 1.45 million people and contributes a major proportion to the total value of sea food export from the country.
  • In FY24, marine products exports from the state stood at about US$ 2.96 billion.
  • Andhra Pradesh is one of the largest producers of brackish water shrimps and freshwater prawns.

Andhra Pradesh is a major industrial and export-driven state on India’s east coast, supported by strong port-led infrastructure, single-window industrial clearances, and sector-focused policies in electronics, solar power, food processing and pharmaceuticals. With an estimated GSDP of Rs. 18.3 trillion (US$ 214.2 billion) in FY26 and exports of Rs. 1.84 trillion (US$ 20.8 billion) in FY25, the state is a leader in engineering goods, marine products and pharmaceuticals. It hosts large power capacity (28.4 GW), robust road and port connectivity, and major investments such as the Nakkapalli Bulk Drug Park and Amaravati capital development. Agriculture and fisheries remain key strengths, with Andhra Pradesh contributing over 40% of India’s fish production, while ongoing reforms, infrastructure spending and investor-friendly governance continue to position the state as a competitive destination for manufacturing, exports and sustainable growth.