Andhra tops India’s investment inflows with 25.3% share of proposed capital in FY26: BoB

Amaravati: Andhra Pradesh has emerged as India’s top 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 Bank of Baroda report.

The state has overtaken Odisha, which drew 13.1 per cent of proposed investments, and Maharashtra with 12.8 per cent, indicating a shift in industrial momentum towards eastern and southern regions. Together, Andhra Pradesh, Odisha and Maharashtra accounted for 51.2 per cent of India’s total proposed capital investment during the period.

At the national level, investment announcements touched ₹26.6 lakh crore, marking an 11.5 per cent rise year-on-year. The report said there are “clear signs of a pick-up in investment intentions”, driven by the government’s policy package focused on higher capital expenditure, lower income tax rates and the rollout of GST 2.0. These measures have partly offset the impact of higher US tariffs on Indian exports, while easing interest rates have further supported investment activity.

Power emerged as the largest sector, accounting for 22.6 per cent of total proposed investments, led by renewable energy. Metals followed with a 17.3 per cent share, reflecting strong capital formation across infrastructure, automobiles and housing. Construction maintained a steady share of 4 per cent, covering both residential and commercial projects, while government capex was reflected in growing 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). Together, these five states accounted for about 68 per cent of total investment intentions. Other states attracting 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 state government attributed the performance to investor-friendly policies, fast-track approvals, sector-focused strategies and infrastructure development across ports, industrial corridors, logistics, energy and digital networks.