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, 32 SEZs with formal approvals, four SEZs with in-principle approval and 27 notified SEZs, as of July 2021. 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-December 2021, FDI inflows in Andhra Pradesh stood at US$ 450.86 million. The state ranked 14th in India in terms of FDI inflows.

• In 2021 (until February 2021), 10 investment intentions worth Rs. 1,994 crore (US$ 260 million) were filed in Andhra Pradesh.

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 March 2022, Andhra Pradesh has a total installed power generation capacity of 25,726.89 MW.

The Visakhapatnam port ranks third in terms of port traffic. In FY22, the traffic handled at the port was 69.03 million tonnes.

• In March 2022, Arcelor Mittal announced a renewable energy partnership with Greenko Group, under which it will invest US$ 600 million to own and fund a 975 MW renewable energy project in Andhra Pradesh.
• 52.38 lakh farmers received Rs. 7,016 crore (US$ 920 million) in financial assistance under the Rythu Bharosa scheme in 2021-22.
• In July 2021, the Central Government agreed to establish a petrochemical corridor with an outlay of Rs. 25,000 crore (US$ 3.27 billion) in Andhra Pradesh.
• In May 2021, the Competition Commission of India (CCI) approved the acquisition of an additional 25% shareholding of Adani Krishnapatnam Port Limited by Adani Ports and Special Economic Zone Limited.
• In 2020, domestic tourist arrivals in the state stood at 70.83 million, while foreign tourist arrivals stood at 67,591.
• 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.
• In August 2020, the state government approved the Detailed Project Report (DPR) of the Phase-1 work of Bhavanapadu Port in Srikakulam at an estimated cost of Rs. 3,669.95 crore (US$ 499.51 million). The project is expected to be completed by 2023-24.