Andhra Pradesh has significantly strengthened its export ecosystem, improving its ranking in NITI Aayog’s Export Preparedness Index (EPI) 2024 to 5th position among all Indian states, up from 8th place in 2022. The latest index, released earlier this week, reflects the state’s steady progress in policy support, infrastructure development and sectoral diversification.
The state’s exports crossed the ₹1.6 lakh crore mark in FY 2024 and have grown at an average rate of 6 per cent over the past five years. Andhra Pradesh’s export basket continues to reflect a strong mix of traditional strengths and emerging sectors, with agriculture and aquaculture remaining key pillars.
Andhra Pradesh accounts for nearly 60 per cent of India’s marine product exports. Frozen shrimp and prawns alone generated export earnings of ₹19,776 crore in FY24, reinforcing the state’s dominance in the global seafood trade. Pharmaceuticals have emerged as another major growth driver, with medicament exports valued at ₹10,875 crore, largely from Jawaharlal Nehru Pharma City in Visakhapatnam. This has placed Andhra Pradesh among the top five pharmaceutical exporting states in the country.
Industrial and manufacturing exports are also gaining momentum. Floating structures exports stood at ₹9,028 crore, ferro-alloys at ₹5,480 crore, and petroleum oils at ₹5,238 crore. Agricultural exports remain robust, led by tobacco (₹7,045 crore), rice (₹6,412 crore), sugar (₹5,727 crore), and spices such as capsicum and pepper (₹5,582 crore).
Automobile manufacturing is emerging as a new contributor, with motor car exports reaching ₹5,518 crore in FY24. In addition, with an installed renewable energy capacity of 9.4 GW, Andhra Pradesh is positioning itself as an important hub for the export of solar and wind energy equipment.
Despite these achievements, the EPI highlights several structural challenges that could constrain future growth. High fiscal deficits and rising debt levels limit the state’s capacity to make large-scale, long-term investments. Skill development remains misaligned with industry requirements, particularly in electronics, pharmaceuticals and marine processing.
Regional disparities also persist. Inland areas such as Rayalaseema continue to suffer from inadequate infrastructure, limited logistics parks and poor connectivity, resulting in higher transport costs and uneven export growth. The absence of active air cargo terminals affects time-sensitive and high-value exports, while limited district-level export planning and low adoption of BIS certifications reduce product competitiveness in global markets.
The state’s heavy dependence on a narrow export base—primarily seafood and rice—makes it vulnerable to global demand fluctuations, trade policy changes and cold-chain disruptions. Operational delays at ports such as Kakinada have already prompted some exporters to divert shipments to other locations.
Adding to these concerns are climate-related risks. Frequent cyclones along the Bay of Bengal coast and rising sea levels pose serious threats to agriculture and fisheries, impacting livelihoods and export stability.
Even as Andhra Pradesh celebrates its improved EPI ranking, addressing these structural, logistical and climate challenges will be crucial to sustaining export growth and moving further up the national and global export value chain.
