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-principle 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-Dec 2024 stood at Rs. 9,397 crore (US$ 1.1 billion). In September 2022, a total of Rs. 126,622 crore (US$ 15.5 billion) worth of investment proposals were approved by the Andhra Pradesh State Investment Promotion Board (SIPB), of which Rs. 81,000 crore (US$ 9.92 billion) would be invested in the green energy sector.
Merchandise exports from Andhra Pradesh increased to Rs. 1,59,242 crore (US$ 18.64 billion) in FY25 (Until Feb). Engineering Goods are the largest export category of the state, accounting for around 24.72% of the total exports in FY25 (Until Feb) and stood at 25.14% of total exports.
During the Budget 2022-23, the State Government announced that in phase III of the Nadu-Nedu program, the infrastructure in 24,620 schools (such as furniture, fans, lights, and drinking water) will be upgraded.
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.
Seemandhra, comprising of Rayalaseema and coastal Andhra, has most of the power projects of undivided Andhra Pradesh. Coal-based power plants are mostly located in the state due to the proximity to the ports. As on March 2025, Andhra Pradesh has a total installed power generation capacity of 28,409.04 MW. Of the total, private utilities contributed 17,719.11 MW, state utilities contributed 8,576.38 MW and central utilities contributed 2,113.56 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.
Traffic handled by the Visakhapatnam port reached 82.62 million tonnes in FY25.
November 2023, Andhra Pradesh Chief Minister Mr. Y S Jagan Mohan Reddy virtually inaugurated and laid the foundation for various power projects worth Rs. 6,600 crore (US$ 792.3 million). This includes 2 solar power projects in Kadapa and Anantapur valued at Rs. 3,400 crore (US$ 408.2 million), the foundation for 16 power substations costing Rs 2,479 crore (US$ 297.35 million), and the inauguration of 12 substations worth Rs. 620 crore (US$ 74.4 million).
In March 2022, Arcelor Mittal announced a renewable energy partnership with Greenko Group with an investment of US$ 600 million to own and fund a 975 MW renewable energy project in Andhra Pradesh.
Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine, and hospitable people. In 2022, domestic tourist arrivals in the state stood at 93.20 million, while foreign tourist arrivals stood at 27,551.
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.
In December 2023, The National Investment and Infrastructure Fund (NIIF) plans to invest up to Rs. 675 crore (US$ 81 million) in the upcoming greenfield international airport at Bhogapuram in Andhra Pradesh.
In September 2022, Andhra Pradesh Chief Minister Mr. YS Jagan Mohan Reddy unveiled a geoportal-based tourism information system, asset management system, and decision support system. He also declared 2023 as ‘Visit Andhra Pradesh – 2023’ year.
The government has taken eco-tourism initiatives by creating new community based eco-tourism centres and strengthening the existing eco-tourism centres by involving local tribes.
