Andhra Pradesh Tops India’s Investment Chart in FY26

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

Bank of Baroda Report Highlights Surge

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

CM Naidu Credits Policy Reforms

Reacting to the data, Andhra Pradesh Chief Minister N Chandrababu Naidu said the state’s performance was the outcome of forward-looking reforms and a focus on “Speed of Doing Business”. He highlighted measures such as an escrow-based mechanism for timely and transparent distribution of incentives, along with clearly defined, sector-specific policies aimed at improving investor confidence.

Regional Shift in Industrial Momentum

The Bank of Baroda data indicates a broader regional shift in India’s investment landscape. After Andhra Pradesh, Odisha and Maharashtra, other significant contributors included Telangana with a 9.5 per cent share and Gujarat at 7.1 per cent. Tamil Nadu accounted for 4.9 per cent, while Rajasthan and Chhattisgarh recorded 4.3 per cent and 3.9 per cent respectively. Larger states such as Uttar Pradesh and Karnataka reported comparatively lower shares at 2.7 per cent and 2.1 per cent.

Imporatnt Facts for Exams

• Andhra Pradesh captured 25.3% of proposed investments in the first nine months of FY26.
• Bank of Baroda periodically publishes data on state-wise investment trends.
• Industrial investment momentum is shifting towards eastern and southern India.
• FY26 investment announcements rose by 11.5% year-on-year.

Outlook for Sustained Growth

Naidu described the milestone not as an endpoint but as a foundation for sustained growth. He thanked investors for placing confidence in Andhra Pradesh and acknowledged the role of the state administration in facilitating reforms. The government, he said, will remain focused on strengthening partnerships, expanding impact, and ensuring long-term economic growth for the state.