VIJAYAWADA: Several key projects and proposals announced in the Union Budget 2026-27 tabled by Finance Minister Nirmala Sitharaman in the Parliament on Sunday are set to benefit the coastal State of Andhra Pradesh in various sectors.
Though it was learnt only Rs 3,320 crore earmarked for Polavaram project and around Rs 1,128.91 crore from ADB and another Rs 432.09 crore for the development of Amaravati capital city, the announcements such as tax holiday for data centres, excavation of rare minerals, Purvodaya scheme, passing of three high-speed railway corridors through the State are expected to boost the rapid development of Andhra Pradesh.
As the State government already attracted huge investments through Google and other data centres, exemption of taxes till 2047 would create a strong atmosphere in the direction of making the State a destination for the AI sector.
Identification of Andhra Pradesh as a Rare Earth Minerals corridor is expected to attract investments in mining, processing, research and value addition, while reducing India’s dependence on critical imports.
It is being observed that the proposed establishment of three chemical parks and the emphasis on plug-and-play industrial infrastructure, would further strengthen AP’s manufacturing ecosystem.
The proposals for new freight corridors, expansion of inland waterways and promotion of seaplane services, would significantly strengthen the State’s logistics ecosystem and port-led growth strategy.
On the ecotourism front in the State, the proposal to develop eco-friendly mountain circuits in the Araku Valley and bird-watching trails around Pulicat Lake reflect a shift towards sustainable tourism, balancing environmental conservation with employment generation.
Andhra Pradesh, which already stands as the country’s leading marine food exporter, is also expected to benefit from the proposal to develop 500 reservoirs. Further, the dedicated programme announced for high-value crops such as coconut, cashew and cocoa would support income growth in coastal regions.
While the Rs 10,000 crore MSME Growth Fund would provide critical support to small and medium enterprises, allocations of Rs 5,000 crore per city over five years for City Economic Regions in Tier-2 and Tier-3 cities are expected to transform Vijayawada, Tirupati and Visakhapatnam into regional growth centres. The Rs 40,000 crore allocation for electronics components manufacturing and the roll out of Semiconductor India Mission 2.0 are expected to benefit established clusters such as Sri City.