Last updated on Jun, 26 2020
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 consisted 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.
The state has a well-developed social, physical, and industrial infrastructure and virtual connectivity. It also has good power, airport, IT, and port infrastructure. At current prices, Andhra Pradesh's Gross State Domestic Product (GSDP) was Rs 10.08 trillion (US$ 154.62 billion) in 2019-20. The GSDP grew at a CAGR of 15.38 per cent from 2015-16 to 2019-20.
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.
The state attracted Foreign Direct Investment (FDI) equity inflow worth US$ 19.19 billion between April 2000 and March 2020 according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).
As of February 2020, the state had 20 operational SEZs (Special Economic Zone), 32 SEZs with formal approvals, four SEZs with in-principle approval, and 27 notified SEZs. These SEZs were spread across diversified sectors which include textiles & apparel, food processing, footwear & leather products, multi-product, pharma, IT SEZs, etc.
During 2019, 139 investment intentions worth Rs 18,823 crore (US$ 2.69 billion) were filed in the state.
Seemandhra, comprising 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 proximity to the ports. As of March 2020, Andhra Pradesh had a total installed power generation capacity of 24,854.00 MW.
The Visakhapatnam port ranks third in terms of port traffic in India. It handled 72.72 million tonnes of traffic during 2019-20.
On November 17, 2019, ports of Visakhapatnam and Ranong in Thailand entered in joint venture to explore business opportunities.
In November 2019, Visakha Container Terminal at Vizag port operated the first-ever direct service from South East India to North Europe (IEX), also connecting the Mediterranean region.
In 2019, domestic tourist arrivals in the state stood at 195.8 million, while foreign tourist arrivals stood at 0.23 million.
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