Andhra Pradesh Govt Plans to Mobilize ₹40 Lakh Crore Investment in 5 Years to Double GSDP.

The Andhra Pradesh government has outlined an ambitious strategy to mobilize ₹40.43 lakh crore in investments over the next five years to double the state's Gross State Domestic Product (GSDP) to ₹31 lakh crore by 2029.

According to a strategy paper prepared by the State Finance Department, Andhra Pradesh’s current GSDP stands at approximately ₹16 lakh crore. The government aims to add ₹15 lakh crore in economic output, requiring massive investments across key sectors.

The funding will be sourced through a combination of public and private investments. The government plans to contribute ₹4.8 lakh crore through budgetary support, while ₹2.5 lakh crore will come from central government institutions and PSUs. Additionally, ₹2 lakh crore will be raised through innovative financing mechanisms via state-run institutions and corporations. The remaining 77%—approximately ₹31.14 lakh crore—will be driven by private sector investments.

The investment strategy focuses on high-growth sectors such as clean energy, industrial development, food processing, infrastructure, tourism, IT services, roads, highways, and agriculture. The service sector is expected to receive the highest share of investments at ₹19.52 lakh crore, followed by industries at ₹11.97 lakh crore and agriculture and allied activities at ₹5.85 lakh crore.

This approach aligns with Chief Minister N. Chandrababu Naidu’s vision to accelerate job creation and replicate the service sector-led growth model he previously championed in Hyderabad. The broader economic roadmap is part of the Swarnandhra Pradesh Vision 2047, which aims to transform the state into a $2.4 trillion economy with a per capita income of $42,000 by 2047.

According to the strategy paper, achieving an annual growth rate of 15%—double the current 7.5%—would result in a more than fourfold increase in GSDP and per capita income. In 2024-25, Andhra Pradesh’s economy is projected to grow by 12.94% at current prices, driven by a balanced performance across agriculture, industry, and services.

The state government is banking on new investment-friendly policies, incentives, and ease-of-doing-business reforms to attract both domestic and foreign capital, aiming to establish Andhra Pradesh as a key economic powerhouse in India.

HBL