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 consists 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.
Andhra Pradesh has a well-developed social, physical, and industrial infrastructure, as well as good virtual connectivity. It also has good power, airport, IT, and port infrastructure. At current prices, The state's Gross State Domestic Product (GSDP) was Rs. 14,49,501 crore (US$ 175.75 billion) for 2023-24. The GSDP increased at a CAGR (in Rs.) of 11.6% between 2015-16 and 2023-24. The Gross Value Added (GVA) growth stood at 18.47% during 2021-22.
Andhra Pradesh has been one of the foremost states to have developed sector-specific policies. Forming industrial clusters and developing infrastructure, such as biotech parks, textile parks and hardware parks has been the state's key strategy to attract investments in various industries.
Andhra Pradesh was home to 24 operational SEZs, 33 SEZs with formal approvals, four SEZs with in-principle approval and 28 notified SEZs, as of July 2022. These SEZs were spread across diversified sectors which include textiles & apparel, food processing, footwear & leather products, multi-products, pharma, IT SEZs, etc.
Between October 2019-March 2023, FDI inflows in Andhra Pradesh stood at US$ 796 million. The state ranked 14th in India in terms of FDI inflows. In September 2022, a total of Rs. 126,622 crore (US$ 15.5 billion) worth of investment proposals were approved by the Andhra Pradesh State Investment Promotion Board (SIPB), of which Rs. 81,000 crore (US$ 9.92 billion) would be invested in the green energy sector.
During the Budget 2022-23, the State Government announced that in phase III of the Nadu-Nedu program, the infrastructure in 24,620 schools (such as furniture, fans, lights, and drinking water) will be upgraded.
Hyderabad has become one of the preferred destinations for global pharma biotech investments and has attracted around Rs. 7,500 crore (US$ 983.52 million) of investments in FY22, which is expected to result in employment for about 35,000 people.
Seemandhra, comprising of Rayalaseema and coastal Andhra, has most of the power projects of undivided Andhra Pradesh. Coal-based power plants are mostly located in the state due to the proximity to the ports. As of April 2023, Andhra Pradesh has a total installed power generation capacity of 26,675.73 MW. Of the total, private utilities contributed 16,794.81 MW, state utilities contributed 7,776.38 MW and central utilities contributed 2,104.54 MW. The Andhra Pradesh Electricity Regulatory Commission (APERC) has announced the Renewable Power Purchase obligation (RPPO) targets: 18% for FY23, 19% for FY24, 20% for FY25, 22% for FY26, and 24% for FY27.
The Visakhapatnam port ranks third in terms of port traffic. In FY22, the traffic handled at the port was 69.03 million tonnes.
In March 2022, Arcelor Mittal announced a renewable energy partnership with Greenko Group under which it will invest US$ 600 million to own and fund a 975 MW renewable energy project in Andhra Pradesh.
52.38 lakh farmers received Rs. 7,016 crore (US$ 920 million) in financial assistance under the Rythu Bharosa scheme in 2021-22.
In July 2021, the Central Government agreed to establish a petrochemical corridor with an outlay of Rs. 25,000 crore (US$ 3.27 billion) in Andhra Pradesh.
In May 2021, the Competition Commission of India (CCI) approved the acquisition of an additional 25% shareholding of Adani Krishnapatnam Port Limited by Adani Ports and Special Economic Zone Limited.
Andhra Pradesh is known for its pristine beaches, sacred places of worship, lush green forests, spicy cuisine, and hospitable people. In 2022, domestic tourist arrivals in the state stood at 93.20 million, while foreign tourist arrivals stood at 27,551.
- In September 2022, Andhra Pradesh Chief Minister Mr. YS Jagan Mohan Reddy unveiled a geoportal-based tourism information system, asset management system, and decision support system. He also declared 2023 as ‘Visit Andhra Pradesh – 2023’ year.
- The government has taken eco-tourism initiatives by creating new community based eco-tourism centres and strengthening the existing eco-tourism centres by involving local tribes.
