The erstwhile state of Andhra Pradesh has been bifurcated into two states, Telangana, and residuary Andhra Pradesh (Seemandhra) by the Andhra Pradesh Reorganisation Act, 2014, or the Telangana Act. The Act consists of the aspects of the division of assets and liabilities, the boundaries of the proposed new states, and the status of the capital city Hyderabad after the separation of the state.
Andhra Pradesh has a well-developed social, physical, and industrial infrastructure, as well as good virtual connectivity. It also has good power, airport, IT, and port infrastructure. At current price, Andhra Pradesh's Gross State Domestic Product (GSDP) is expected to be Rs. 18,30,000 crore (US$ 214.20 billion) for FY26. The GSDP increased at a CAGR (in Rs.) of 11.7% between FY16 and FY26.
Andhra Pradesh has been one of the foremost states to have developed sector-specific policies. Forming industrial clusters and developing infrastructure, such as biotech parks, textile parks and hardware parks has been the state's key strategy to attract investments in various industries.
As per Andhra Pradesh Industrial Infrastructure Corporation, Andhra Pradesh was home to total of 47 SEZs including 10 SEZs with formal approvals, five SEZs with in-principal approval and 32 notified SEZs. These SEZs were spread across diversified sectors which include textiles & apparel, food processing, footwear & leather products, multi-products, pharma, IT SEZs, etc.
According to Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in Andhra Pradesh between October 2019-June 2025 stood at Rs. 11,297 crore (US$ 1.27 billion).
Merchandise exports from Andhra Pradesh increased to Rs. 1,84,277 crore (US$ 20.78 billion) in FY25. Engineering Goods are the largest export category of the state, accounting for around 20.78% of the total exports in FY25 while marine products being the second most exported item stood at 15.45% of total exports.
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.
On October 27, 2025, the Government of India sanctioned Rs. 35,882 crore (US$ 4.05 billion) for rural road and bridge infrastructure in Andhra Pradesh under the Pradhan Mantri JanaMAN initiative. This funding aims to accelerate connectivity and support regional development across rural areas.
On August 3, 2025, Union Minister of Road Transport & Highways, Mr. Nitin Gadkari declared that Andhra Pradesh’s road connectivity will surpass that of the United States (US) within two years, while announcing 27 new road projects worth Rs. 5,233 crore (US$ 590 million) and in principle approval for several schemes' worth around Rs. 1,00,000 crore (US$ 11.28 billion).
The rail budget allocation for Andhra Pradesh has risen to Rs. 9,417 crore (US$ 1.06 billion) in FY26, over ten times higher than a decade ago.
The Tirupati Airport in Andhra Pradesh recorded a 50% plus YoY surge in domestic passenger traffic in May 2025 as the state unveiled a Rs. 600 crore (US$ 67.7 million) tourism and hospitality development project to reinforce its travel and hospitality infrastructure.
Andhra Pradesh has most of the power projects of undivided Andhra Pradesh. Coal-based power plants are mostly located in the state due to their proximity to the ports. As of September 2025, Andhra Pradesh has a total installed power generation capacity of 28,416.25 MW. Of the total, private utilities contributed 17,453.43 MW, state utilities contributed 8,576.38 MW and central utilities contributed 2,386.45 MW.
The Andhra Pradesh Electricity Regulatory Commission (APERC) has announced the Renewable Power Purchase obligation (RPPO) targets: 18% for FY23, 19% for FY24, 20% for FY25, 22% for FY26, and 24% for FY27.
Andhra Pradesh aims to build a Rs. 1,77,360 crore (US$ 20 billion) Blue Economy by 2035, leveraging its deep-water coastline and strong rail and highway connectivity. The Andhra Pradesh Maritime Board is developing three greenfield gateway ports at Ramayapatnam, Machilipatnam and Mulapeta under the PPP (DBFOT) and Landlord models, with total investments of about Rs. 17,027 crore (US$ 1.92 billion). These ports will add 145 MTPA capacity by 2030 and generate over 75,000 jobs. The state also plans to build 11 fishing harbours at a cost of Rs. 3,500 crore (US$ 395 million) to strengthen marine infrastructure and coastal livelihoods.
Traffic handled by the Visakhapatnam port reached 43.08 million tonnes in FY26 (April-September 2025).
According to the Telecom Regulatory Authority of India (TRAI), Andhra Pradesh had 42.79 million wireless and 3.26 million wireline subscribers as of June 2025. As of June 2025, the state’s overall teledensity stood at 86.82%.
Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine, and hospitable people.
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 allocated for the Dr. Nandamuri Taraka Ramarao Vaidya Seva Trust, while Rs. 1,385 crore (US$ 162.1 million) has been designated for teaching hospitals.
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.
