Andhra Pradesh has firmly established itself as India's premier investment destination, capturing a staggering one-fourth of all new project announcements in the first nine months of the current financial year. A recent analysis by Bank of Baroda highlights the state's dominant position in attracting capital intent.
A Quarter of India's Investment Pie
According to the Bank of Baroda's 'Investment Climate in 9M-FY26' report, the state secured 25.3% of the total announced investment intentions across India between April and December 2025. This translates to roughly Rs 6.74 lakh crore out of the national total of Rs 26.62 lakh crore. The national figure itself marks an increase from the Rs 23.88 lakh crore recorded in the corresponding period last year.
This performance places Andhra Pradesh far ahead of other major states. Odisha followed with a 13.1% share, Maharashtra with 12.8%, Telangana with 9.5%, and Gujarat with 7.1%. Collectively, these top five states accounted for nearly 68% of all investments announced in the country.
Sectoral Drivers and Mega Projects
The state's remarkable success can be attributed to significant inflows in high-growth sectors. The investment landscape was primarily shaped by large-scale commitments in information technology, manufacturing, logistics, chemicals, and metals.
Several landmark projects were announced in this period, including:
- Raiden's (a Google subsidiary) AI data centre worth Rs 1.3 lakh crore.
- A 1GW data centre by a Reliance joint venture valued at Rs 98,000 crore.
- A massive Rs 1.1 lakh crore investment by ABC Cleantech (Evren) — a Brookfield entity — and Axis Energy.
- ReNew Energy Global's commitment of Rs 82,000 crore.
- Ecoren Energy's project worth Rs 38,250 crore.
While IT investments are concentrating in and around Visakhapatnam, a substantial portion of green energy projects are slated for the Rayalaseema region. Beyond these, the state also secured nearly Rs 13.25 lakh crore in new Memoranda of Understanding (MoUs) at the recent CII Partnership Summit, spanning IT, energy, manufacturing, and emerging technologies. Renewable energy deals alone crossed Rs 3 lakh crore, covering solar, wind, biofuels, green hydrogen, and pumped storage projects.
Government's Vision and Future Roadmap
Reacting to the report, Andhra Pradesh's IT Minister, Nara Lokesh, stated that the state is not merely catching up but is actively pulling ahead in the race for investments. He credited this achievement to consistent reforms, swift decision-making, and an unwavering commitment to investors.
"Our focus has been clear — create a predictable policy environment, enable industry at scale and deliver on the ground," Lokesh said in a social media post. He emphasized the government's dedication to converting announcements into tangible outcomes, adding, "Every investment announcement must translate into factories, jobs, and economic opportunity for our people." The minister affirmed the state's plan to continue building long-term partnerships with investors, prioritizing job creation, and ensuring swift project implementation.
The report indicates a clear geographic and sectoral shift in India's investment flow, with Andhra Pradesh emerging as the undisputed leader, powered by a strategic focus on future-ready industries.
