Andhra Pradesh Tops India's Investment Chart With 25.3% Share In FY26: Bob Report

(MENAFN- KNN India) Amaravati, Jan 3 (KNN) Andhra Pradesh has emerged as India's top investment destination, accounting for 25.3 per cent of total proposed investments in the first nine months of FY26, according to a report by Bank of Baroda (BoB).

The state has outpaced traditional investment hubs such as Odisha, which accounted for 13.1 per cent, and Maharashtra at 12.8 per cent, signalling a shift in investment momentum towards eastern and southern India.

Concentration of Capital Announcements

The report noted that proposed capital investments during the period were heavily concentrated, with Andhra Pradesh, Odisha and Maharashtra together accounting for about 51.2 per cent of the national total. Andhra Pradesh led this grouping by a wide margin.

Overall, investment announcements across India during the first nine months of FY26 stood at Rs 26.6 lakh crore, marking an 11.5 per cent increase compared with the corresponding period last year.

Government Response

Reacting to the findings, Andhra Pradesh Minister for IT, Electronics and Communications, Human Resources Development and RTG, Nara Lokesh, attributed the state's performance to sustained policy reforms and a strong focus on execution.

In a post on X, he 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. Our focus has been clear-create a predictable policy environment, enable industry at scale and deliver on the ground.”

Drivers of Investment Growth

State government officials linked the strong inflow of proposed investments to investor-friendly governance, streamlined approval processes, sector-focused policies and continued infrastructure development across ports, industrial corridors, logistics, energy and digital networks.

Proactive engagement with domestic and global investors, coupled with policy stability and an execution-oriented administration, has translated into large investment commitments across manufacturing, renewable energy, electronics, data centres, mobility and core infrastructure.

Shifting Growth Geography

Industry observers said Andhra Pradesh's growing share of national investment proposals reflects a broader realignment in India's growth geography. The state is increasingly being viewed as a preferred destination for companies seeking scale, connectivity and long-term policy certainty.

Reiterating the government's approach, Nara Lokesh said Andhra Pradesh would continue to focus on building long-term investor partnerships, prioritising job creation and ensuring that investment announcements are converted into projects on the ground in a timely manner.

(KNN Bureau)

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