Andhra Pradesh (AP) is in the southern peninsula of India. The state shares its borders with Chhattisgarh on the north, Odisha on the northeast, Telangana and Karnataka on the west, Tamil Nadu on the south, and the Bay of Bengal on the east.
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.
It is the first state in the country to have enacted the Industrial Single Window Clearance. The Act made it compulsory for new industries to register with a single window to obtain clearances quickly. It also simplified procedures for getting industrial clearances. The state also has separate acts for development in sectors such as solar power, electronic hardware, and food processing.
With 26 districts and a geographical area of 1,62,970 sq. km., Andhra Pradesh ranks as the 8th largest state in the country. The state has a well-developed social, physical, and industrial infrastructure, as well as 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.
The government is striving towards creating quality infrastructure, coupled with a congenial industrial environment in the state, to make AP an attractive destination for both domestic and foreign investors.
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).
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.
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 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 total R&B road network (excluding NH roads) in the state as on December 2022 was 45,321 kms, comprising 12,595.60 kms of state highways, and 26,485.51 kms of major district road and rural roads.
Under AP Mandal Connectivity and Rural Connectivity Improvement project (APMCRCIP), government proposed to improve roads and & bridges of major district roads/other district roads for a length of 728.59 km with Rs.1987.60 crore (US$ 239 million).
Under Major District Roads (MDR) 31 road works with a length of 174.77 km and 5 bridge works have been completed for an amount of Rs. 355.77 crore (US$ 42.8 million).
