The Visakhapatnam port in Andhra Pradesh ranks fourth in terms of port traffic in India. In FY22, the traffic handled at the port was 69.03 million tonnes.
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.
The state 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 prices, Andhra Pradesh's gross state domestic product (GSDP) stood at Rs. 1,201,736 crore (US$ 157.36 billion) for 2021-22. The GSDP increased at a CAGR of 12.14% from 2015-16 to 2021-22. The Gross Value Added (GVA) growth stood at 18.47% during 2021-22.
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.
Andhra Pradesh was home to 24 operational SEZs, 33 SEZs with formal approvals, four SEZs with in-principle approval and 28 notified SEZs, as of July 2022. These SEZs were spread across diversified sectors which include textiles & apparel, food processing, footwear & leather products, multi-products, pharma, IT SEZs, etc.
Between October 2019-June 2022, FDI inflows in Andhra Pradesh stood at US$ 550.42 million. The state ranked 14th in India in terms of FDI inflows. 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.
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 of August 2022, Andhra Pradesh has a total installed power generation capacity of 25,845.93 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.
The Visakhapatnam port ranks third in terms of port traffic. In FY22, the traffic handled at the port was 69.03 million tonnes.
Government of India, the Government of Andhra Pradesh, and the New Development Bank (NDB) today signed two loan agreements worth US$ 646 million for upgrading State Highway Network and District Road Network in Andhra Pradesh.
The larger objective of ranking states based on their performance in the implementation of Business Reform Action Plan is for attracting investments and increasing Ease of Doing Business in each State.