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Foreign direct investment inflows into Andhra Pradesh rose more than six-fold to USD 608.59 million in 2025-26, compared with USD 92.13 million in 2023-24, according to data presented in Parliament. The state recorded USD 233.14 million in FDI in 2024-25 before the inflow increased sharply in the following financial year. The data covers investment across sectors including metallurgical industries, food processing, cement and gypsum products, services, automobiles, chemicals, electrical equipment and electronics. The rise comes as the state government has focused on faster approvals, infrastructure development and improving the ease of doing business.
Foreign direct investment inflows into Andhra Pradesh increased more than six-fold to USD 608.59 million in 2025-26, compared with USD 92.13 million in 2023-24, according to official data presented in Parliament.
The figures show a sharp increase in FDI inflows over the two-year period. The state received USD 233.14 million in 2024-25, before the inflow rose to USD 608.59 million in the latest financial year.
The data was presented by Union Minister Jitendra Singh in response to a question by YSRCP MP Maddila Gurumoorthy in the Lok Sabha. The Union government said attracting higher FDI involves policy reforms, financial incentives, infrastructure development, removal of regulatory barriers, streamlined processes, improved logistics and a better business environment.
For Andhra Pradesh, the increase represents a substantial rise from the USD 92.13 million recorded in 2023-24. FDI more than doubled in 2024-25 and increased further in the following year, taking the total to over six times the level recorded in 2023-24.
The latest inflows were spread across several sectors. Metallurgical industries, food processing, cement and gypsum products, services, automobiles, chemicals, electrical equipment and electronics were among the sectors that attracted the highest FDI during 2025-26.
The sector-wise spread indicates that the investment was not limited to a single industry and included manufacturing as well as services. This is relevant for the state's wider industrial and infrastructure plans, particularly as Andhra Pradesh continues to seek investments in manufacturing, technology, logistics and other employment-generating sectors.
The state government has, since coming to power, placed emphasis on speeding up approvals, improving the ease of doing business, strengthening infrastructure and facilitating investments. Andhra Pradesh Chief Minister N Chandrababu Naidu has also sought central support to develop the state as a technology and innovation hub, including through greater use of existing science and technology programmes.
The increase in FDI also comes against the backdrop of higher planned public investment in the state. Andhra Pradesh's 2026-27 budget has proposed capital outlay of INR 48,698 crore, with increased allocations for areas including urban development, water supply and sanitation, and irrigation and flood control.
DPIIT's latest FDI publications include state-wise equity inflow data for the fourth quarter of 2025-26 and the full period up to March 2026, providing the broader official framework for tracking foreign investment at the state level.
Source PTI
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