Andhra Pradesh Sees Six-Fold Surge in Foreign Investment

The state of Andhra Pradesh has experienced a notable increase in foreign direct investment (FDI), reporting a six-fold rise over the past two years. This information was disclosed in an official statement following a question raised in the Lok Sabha by Maddila Gurumoorthy, a Member of Parliament representing the YSR Congress Party.

According to Union Minister of State for Science and Technology Dr Jitendra Singh, Andhra Pradesh attracted USD 608.59 million in FDI during the fiscal year 2025-26. This is a substantial increase from USD 92.13 million recorded in the fiscal year 2023-24. The government indicated that FDI inflows increased steadily after the coalition government, led by the Telugu Desam Party, took office.

The data shows that FDI rose from USD 92.13 million in FY 2023-24 to USD 233.14 million in FY 2024-25, and further to USD 608.59 million in FY 2025-26. This increase demonstrates that the government managed to more than double FDI in its first year and nearly triple it in the subsequent year.

A significant portion of the investments during FY 2025-26 was directed towards metallurgical industries, which saw FDI soar from USD 0.10 million in 2023-24 to USD 262.56 million in 2025-26. Similarly, investments in industrial machinery surged from zero to USD 183.10 million, while food processing escalated from USD 3.65 million to USD 112.59 million.

The report noted that similar growth was observed in sectors such as cement, gypsum products, services, automobiles, chemicals, electrical equipment, and electronics. This trend is indicative of a rising confidence among investors across various sectors.

The official statement attributed this surge to a robust turnaround in Andhra Pradesh's investment climate under the Telugu Desam Party government. Since assuming power, the government has prioritised enhancing the ease and speed of doing business, expediting approvals, improving infrastructure, and attracting global investors.

Moreover, the Union Minister pointed out several national initiatives that support investments in high-growth sectors. These include the Production Linked Incentive schemes, the Semicon India Programme, and policies designed to promote manufacturing, innovation, and research.

The data and statements made underline the government's focus on fostering a conducive environment for investment and responding to the needs of industry players. The growth in FDI could potentially lead to job creation and economic development in the state, benefitting various sectors of the economy.