Andhra Pradesh is set to remember 2025 as a landmark year for investments, having firmly re-entered the national and global investment landscape after years of uncertainty. The State attracted investment commitments worth nearly Rs 20 lakh crore, driven by investor-friendly policies and proactive governance under the TDP-led coalition government.
A major turning point came in November at the 30th CII Partnership Summit 2025 in Visakhapatnam, where investment commitments far exceeded expectations.
Against a target of Rs 10 lakh cr, the State secured Rs 13.25 lakh cr through 613 MoUs.
The response reflected strong domestic and global investor confidence Energy, IT, tourism, manufacturing and emerging sectors dominated the proposals.
Chief Minister N Chandrababu Naidu’s sustained efforts to rebuild Andhra Pradesh’s brand image were widely credited for the renewed momentum. Through national and international engagements, he positioned the State as a destination defined by policy clarity, transparency and speed of doing business.
Officials also pointed out that region-specific advantages across Andhra Pradesh helped attract investments across diverse sectors.
Priority sectors include manufacturing, IT, electronics, renewable energy, logistics, food processing & infrastructure.
Investments are expected to generate large-scale employment and support inclusive urban and rural development.
The government has assured time-bound approvals through a robust single-window system and proactive investor handholding.
Ports and logistics, steel, IT, renewables and tourism emerged as key focus areas.
Favorable geography, skilled manpower and infrastructure readiness played a decisive role.
The government has directed district administrations to secure statutory clearances to ensure timely execution of projects. These initiatives are expected to transform Andhra Pradesh into a major infrastructure and industrial hub in coming years.
HRD and IT Minister Nara Lokesh played a key role in promoting Andhra Pradesh as an investment destination. Heading a Cabinet sub-committee tasked with facilitating employment for 20 lakh youth over five years, Lokesh led several domestic and international roadshows
IT Minister Nara Lokesh engaged directly with global business leaders to showcase the State’s sectoral strengths
Major outcomes include Google’s $15 billion commitment to establish its largest AI hub outside the US in Vizag
ArcelorMittal Nippon Steel India committed Rs 1.4 lakh crore for a greenfield integrated steel plant in Anakapalli district
Six companies that signed MoUs at the CII Summit have already secured approvals
Unlike earlier phases when MoUs often remained on paper, the coalition government moved swiftly to translate commitments into action.
Proposals worth Rs 8.29 lakh crore, with potential to create 7.62 lakh jobs, have been approved by the State Investment Promotion Board (SIPB)
Over 50 per cent of the MoUs have entered the approval stage
Investments and Infrastructure Minister B.C. Janardhan Reddy credited Chief Minister Naidu’s direct intervention for restoring investor confidence. Speaking to TNIE, he said Naidu personally resolves investor concerns by issuing real-time directions to departments
Mega investments set stage for 2026 growth
Andhra Pradesh’s IT landscape saw significant developments in 2025, with several major investments signalling a new era for the city. Google, in collaboration with the state government, signed a deal to set up a USD 15 billion AI data centre in Visakhapatnam. Reliance’s joint venture, Digital Connexion, plans to invest Rs 98,000 crore to develop 1 GW of data centre capacity across 400 acres.
Other notable commitments
TCS investing Rs 1,370 crore on a 21-acre campus expected to create 12,000 jobs
Sify’s Rs 1,500 crore AI-powered data centre and cable landing station
Phenom’s Rs 207.5 crore intelligent talent campus generating 2,500 jobs
Cognizant’s Rs 1,583 crore 8,000-seat campus at Kapuluppada IT Hills
Sattva’s integrated IT and residential hub
Innovation City R&D centres
Accenture’s 10-acre campus
Reports: S Viswanath, Phanindra Papasani, Y Brahmaji, Neelima Eaty, S Nagaraja Rao