AP emerges as India’s top investment destination

Amaravati: Andhra Pradesh has emerged as India’s top investment destination, capturing 25.3 per cent 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 per cent) and Maharashtra (12.8 per cent), signalling a shift in industrial momentum toward the eastern and southern corridors.

The report notes that over half (51.2 per cent) 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 per cent 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 per cent with renewables leading the pack. Metals have a share of 17.3 per cent 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.