Andhra Emerges As India's Top Investment Destination In FY26

Andhra Pradesh has emerged as India's top investment destination, capturing 25.3% of all proposed investments in the first nine months of current fiscal (FY26), according to a Bank of Baroda report.

The state now leads peers such as Odisha (13.1%) and Maharashtra (12.8%), signalling a shift in industrial momentum toward the eastern and southern corridors.

The report notes that over half (51.2%) of India's total proposed capital investment is concentrated in Andhra Pradesh, Odisha, and Maharashtra. Nationwide, investment announcements reached Rs 26.6 lakh crore in the period, up 11.5% year-on-year.

'There are clear signs of a pick-up in investment intentions in the country this year,' the report said, adding this was on the back of a very positive policy package of the government which has focussed on capex, lowering of income tax rates and GST 2.0.

This, it said, has countered to an extent the impact of the higher tariffs imposed by the USA on Indian exports. Further, there has been a tendency for interest rates to also come down which were to spur investment activity.

'The investment environment does appear to be positive in the present financial year,' the report said.

Of all the investments, power is the dominant sector with a share of 22.6% with renewables leading the pack. Metals have a share of 17.3% which is a positive sign from the point of view of capital formation as they go into several projects ranging from roads and automobiles to housing. This has kept the share of construction steady at 4% - both housing and commercial complexes. The big push given by the government to capex gets reflected in the interest shown in both roads and ports.

On states attracting the most investment, the report said, 'Andhra Pradesh has the highest share of 25.3%, followed by Odisha with 13.1%, Maharashtra with 12.8%, Telangana with 9.5% and Gujarat 7.1%'.

Together they account for around 68% of the total.

The other states which had witnessed significant investment intentions are Tamil Nadu (4.9%), Rajasthan (4.3%), Chhattisgarh (3.9%), Madhya Pradesh (3.2%), and Uttar Pradesh (2.7%).

Commenting on the milestone on social media platform X, Andhra Minister Nara Lokesh said, 'Andhra Pradesh isn't catching up, it's pulling ahead.' This is the result of consistent reforms, speed in decision-making, and an unambiguous commitment to investors. The state government's focus has been clear - create a predictable policy environment, enable industry at scale, and deliver on the ground, he said.

The state government attributes the performance to investor-friendly policies, fast-track approvals, sector-focused strategies, and robust infrastructure development across ports, industrial corridors, logistics, energy, and digital networks. Key sectors attracting investment include manufacturing, renewable energy, electronics, data centres, mobility, and core infrastructure.

Industry observers say Andhra Pradesh's growing share of national investments reflects a broader realignment of India's growth geography, positioning the state as a preferred destination for companies seeking scale, connectivity, and long-term policy certainty.

Reaffirming the state government's approach, Lokesh added that Andhra Pradesh would continue to build long-term partnerships with investors, prioritise job creation and ensure that investments convert swiftly into on-ground projects.

'Every investment announcement must translate into factories, jobs and economic opportunity for our people,' he said.

With this performance, Andhra Pradesh consolidates its status as a key driver of India's next phase of industrial growth and a benchmark for competitive, reform-oriented governance.