Andhra Pradesh tops India’s investment chart in FY26 so far: Bank of Baroda

By Admin

05 Jan, 2026

Andhra Pradesh has emerged as India’s leading investment destination in FY26 so far, capturing a remarkable 25.3 per cent share of total proposed investments during the first nine months of the fiscal year, according to a recent Bank of Baroda report. This achievement highlights a significant shift in India’s industrial and investment landscape, with momentum increasingly moving towards eastern and southern states.

Andhra Pradesh Surpasses Traditional Investment Leaders

The report reveals that Andhra Pradesh has overtaken long-standing investment hubs such as Odisha and Maharashtra. Odisha attracted 13.1 per cent of proposed investments, while Maharashtra accounted for 12.8 per cent, placing Andhra Pradesh firmly at the top of the investment chart. Together, Andhra Pradesh, Odisha and Maharashtra contributed 51.2 per cent of the total proposed capital investments during the period, underlining their strategic importance in India’s growth story.

Strong Growth in National Investment Intentions

At the national level, investment announcements reached ₹26.6 lakh crore, reflecting an 11.5 per cent year-on-year increase. Bank of Baroda noted “clear signs of a pick-up in investment intentions,” driven by supportive government measures such as higher capital expenditure, lower income tax rates, and the rollout of GST 2.0. These reforms have played a crucial role in boosting business confidence and encouraging large-scale investment commitments.

Policy Support Cushions Global Trade Pressures

The report also pointed out that these domestic policy initiatives have helped partially offset the impact of higher US tariffs on Indian exports. Additionally, easing interest rates have further strengthened the investment environment by reducing borrowing costs and improving project viability across sectors.

Power and Metals Lead Sector-Wise Investments

Sector-wise analysis shows that power emerged as the largest contributor, accounting for 22.6 per cent of total proposed investments. This growth is largely driven by renewable energy projects, reflecting India’s accelerating transition towards sustainable and clean energy.

Metals followed closely with a 17.3 per cent share, indicating strong capital formation across infrastructure, automobiles and housing. Construction maintained a steady 4 per cent share, covering both residential and commercial developments, while rising government capital expenditure translated into increased investor interest in roads and ports.

Top States Driving Investment Momentum

Among Indian states, Andhra Pradesh led decisively with a 25.3 per cent share, followed by Odisha (13.1 per cent), Maharashtra (12.8 per cent), Telangana (9.5 per cent) and Gujarat (7.1 per cent). Collectively, these five states accounted for nearly 68 per cent of total investment intentions nationwide.

Other states that attracted notable investment interest included Tamil Nadu (4.9 per cent), Rajasthan (4.3 per cent), Chhattisgarh (3.9 per cent), Madhya Pradesh (3.2 per cent) and Uttar Pradesh (2.7 per cent), reflecting broad-based industrial expansion across regions.

Government Reforms Power Andhra Pradesh’s Rise

Reacting to the report on social media platform X, Andhra Pradesh minister Nara Lokesh stated that the state is “pulling ahead” due to consistent reforms, faster decision-making and a strong commitment to investors. The Andhra Pradesh government credited its success to investor-friendly policies, fast-track project approvals, sector-specific growth strategies and sustained infrastructure development.

Key focus areas include ports, industrial corridors, logistics hubs, energy projects and digital networks, all of which have strengthened the state’s competitiveness and ease of doing business.

A New Investment Growth Engine

With robust policy support, proactive governance and a clear long-term vision, Andhra Pradesh has positioned itself as a new engine of investment-led growth in India. As FY26 progresses, the state’s strong performance may set a benchmark for others, reinforcing India’s broader economic momentum amid global uncertainties.