Andhra recorded six-fold hike in FDI in last 2 yrs, says Naidu govt

Andhra Pradesh has recorded a six-fold increase in foreign direct investment (FDI) over the past two years under the Telugu Desam Party (TDP)-led coalition government, according to data cited by Union minister of state for science and technology Dr Jitendra Singh. The figure rose from USD 92.13 million in fiscal year 2023-24 to USD 608.59 million in fiscal year 2025-26, marking a dramatic surge in capital inflows. This growth was attributed to the government's efforts to improve the ease of doing business, expedite approvals, and enhance infrastructure, alongside national policies such as the Production Linked Incentive (PLI) schemes and the Semicon India initiative. The increase in FDI followed a gradual upward trend since the coalition government took office. According to the data shared by the minister, FDI inflows climbed from USD 92.13 million in FY 2023-24 to USD 233.14 million in FY 2024-25, and then surged to USD 608.59 million in FY 2025-26. This indicates that the state saw more than double the investment in its first year and nearly triple it in the second year. The rapid acceleration suggests a significant shift in investor sentiment toward Andhra Pradesh, particularly in key sectors such as metallurgy, industrial machinery, food processing, and others. Metallurgical industries emerged as the largest recipient of FDI during FY 2025-26, with inflows jumping from USD 0.10 million in FY 2023-24 to USD 262.56 million. Industrial machinery also saw a notable rise, increasing from zero to USD 183.10 million, while food processing investments grew from USD 3.65 million to USD 112.59 million. Other sectors, including cement and gypsum products, automotive, chemicals, electrical equipment, and electronics, also reported substantial increases in FDI, indicating broad-based interest across diverse industries. The government credited these developments to its focus on creating a more favorable environment for businesses. It emphasized measures such as streamlining approval processes, investing in infrastructure, and fostering collaboration with national initiatives designed to boost manufacturing and innovation. These steps were said to have contributed to the improved investment climate and attracted both domestic and international investors. The minister also pointed to broader national strategies that supported the state's economic transformation. Policies like the PLI scheme, which offers financial incentives for manufacturers, and the Semicon India programme, aimed at boosting semiconductor production, played a role in drawing investment. Additionally, programmes such as BioE3, which supports biotechnology and pharmaceuticals, were mentioned as part of the framework encouraging innovation and research. Despite the impressive growth in FDI, some analysts argue that the current growth drivers remain insufficient and that a more aggressive investment push akin to the post-pandemic recovery period is needed. They suggest that while the recent surge is promising, sustained progress will require continued policy support, enhanced infrastructure, and greater private sector participation to ensure long-term economic stability and growth.