Foreign Direct Investment in Andhra Pradesh, India

Andhra Pradesh attracts foreign direct investments in India in the Property, petrochemicals, Automotive, textiles, Aerospace, renewable energy, food processing and the leather sectors. Its employment intensive sectors of the economy aim at ameliorating the imbalances that exist. A policy framework aimed at invigorating the MSME sector in the state is geared towards attracting green energy investments. With readily available resources, prominence in Andhra Pradesh has been laid on small scale industries that generate employment. Many investments in the strong sectors of the economy are encouraged to create competition in foreign and local investments. Focus has however been put into attracting investments in the IT sector as well in Tier-Z cities like Warangal and Tirupati.


A new industrial policy is geared at attracting foreign direct investments in India through manufacturing. It is hoped that the annual growth rate for the MSME sector attains a 12 to 15% sustainable growth. Andhra Pradesh continues to be a magnet for investors in the food processing industry. A market leader in the production of rice, citrus, chilly, oil, Prawn, egg and meat, the region has distinguished itself as a hub for investors in this economy sector. Given the fact that it still comes second in the production of other foods like fish, tomato, coriander and a close third in tapioca and Pomegranate, the total output of Andhra Pradesh in industrial terms is 19.26%. Companies with Foreign direct investments in India do not troupe to the region for nothing.


Foreign Direct investments in India topped US$1.74 billion by end of last year. The Department of Industrial Policy and Promotion’s latest figures still report a likely increase in that amount this year. Thus when added up, about US$20.92 billion is the total sum in inflows that the country earned. A majority of this came from Andhra Pradesh and its vibrant economy. India’s most loyal foreign investors have been America and the European Union.


On the other hand, the services sector in Andhra Pradesh is estimated to have attracted foreign direct investments in India of up to US$3.54 billion. The services sector in this region comprises of the financial and non financial services. The telecommunications sector too, performs relatively well. The key economic pointers of this region have sustained a consistent growth with a marked increase in the number of foreign investments. Andhra Pradesh continues to contribute a good percentage to the overall GDP of India.


07 May 2010