Andhra Pradesh has emerged as India’s leading investment destination, accounting for 25.3 per cent of all proposed investments in the first nine months of the current fiscal year (FY26), according to a report by Bank of Baroda.
The state has overtaken Odisha, which attracted 13.1 per cent of proposed investments, and Maharashtra with a 12.8 per cent share, signalling a shift in industrial momentum towards eastern and southern India. Together, Andhra Pradesh, Odisha and Maharashtra accounted for 51.2 per cent of total proposed capital investments during the period.
At the national level, investment announcements touched ₹26.6 lakh crore, registering an 11.5 per cent year-on-year increase. The report noted “clear signs of a pick-up in investment intentions”, supported by the government’s policy package centred on higher capital expenditure, lower income tax rates and the rollout of GST 2.0.
These measures have helped partially offset the impact of higher US tariffs on Indian exports, while easing interest rates have further supported investment activity, the report said.
Sector-wise, power emerged as the largest contributor, accounting for 22.6 per cent of total proposed investments, driven largely by renewable energy projects. Metals followed with a 17.3 per cent share, reflecting robust capital formation across infrastructure, automobiles and housing. Construction maintained a steady share of 4 per cent, covering residential and commercial projects, while rising government capital expenditure was reflected in increased interest in roads and ports.
Among states, Andhra Pradesh led with a 25.3 per cent share, followed by Odisha (13.1 per cent), Maharashtra (12.8 per cent), Telangana (9.5 per cent) and Gujarat (7.1 per cent). These five states together accounted for nearly 68 per cent of total investment intentions. Other states drawing notable interest included Tamil Nadu (4.9 per cent), Rajasthan (4.3 per cent), Chhattisgarh (3.9 per cent), Madhya Pradesh (3.2 per cent) and Uttar Pradesh (2.7 per cent).
Reacting on social media platform X, Andhra Pradesh minister Nara Lokesh said the state was “pulling ahead” due to consistent reforms, faster decision-making and a strong commitment to investors.
The Andhra Pradesh government attributed the strong investment inflows to investor-friendly policies, fast-track approvals, sector-specific strategies and sustained infrastructure development across ports, industrial corridors, logistics, energy and digital networks.
