Andhra Pradesh Emerges as India’s Top Investment Destination in FY26

Andhra Pradesh Leads India in Proposed Investments

Andhra Pradesh has emerged as India’s leading investment destination in FY26, capturing the largest share of proposed investments in the country. During the first nine months of the fiscal year, the state accounted for 25.3 per cent of total proposed investments, signalling a decisive shift in industrial momentum towards eastern and southern India.

Bank of Baroda Report Highlights Surge

According to a recent report by Bank of Baroda , Andhra Pradesh topped all states in attracting proposed capital during the first three quarters of FY26. Odisha followed with a 13.1 per cent share, while Maharashtra ranked third at 12.8 per cent. Together, these three states accounted for 51.2 per cent of total proposed investments nationwide. Overall investment announcements during this period rose by 11.5 per cent year-on-year, reaching ₹26.6 lakh crore.

CM Naidu Credits Policy Reforms

Reacting to the data, Andhra Pradesh Chief Minister N Chandrababu Naidu attributed the state’s performance to forward-looking reforms and a strong focus on “Speed of Doing Business”. He highlighted initiatives such as an escrow-based mechanism for the timely and transparent release of incentives, along with clearly defined, sector-specific industrial policies designed to boost investor confidence and reduce procedural delays.

Regional Shift in Industrial Momentum

The Bank of Baroda analysis also points to a broader regional realignment in India’s investment landscape. After Andhra Pradesh, Odisha, and Maharashtra, Telangana accounted for 9.5 per cent of proposed investments, followed by Gujarat at 7.1 per cent. Tamil Nadu recorded a 4.9 per cent share, while Rajasthan and Chhattisgarh contributed 4.3 per cent and 3.9 per cent respectively. Larger states such as Uttar Pradesh and Karnataka reported relatively lower shares of 2.7 per cent and 2.1 per cent, underscoring changing investment preferences.

Outlook for Sustained Growth

Naidu described the achievement not as a culmination but as a foundation for long-term growth. Thanking investors for their confidence, he said the state government would continue to strengthen partnerships, deepen reforms, and ensure sustained economic expansion across sectors.

Important Facts for Exams

• Andhra Pradesh captured 25.3% of proposed investments in the first nine months of FY26.

• Bank of Baroda publishes periodic reports on state-wise investment trends.

• Industrial investment momentum is shifting towards eastern and southern India.

• FY26 investment announcements grew by 11.5% year-on-year.