Andhra Pradesh Government has drawn a strategy to mobilise ₹40 lakh crore of investment from diverse sources over next five years to double the Gross State Domestic Product (GSDP).

“The aspiration is to add ₹15 lakh crore in GSDP by 2029 necessitating an investment of ₹40.43 lakh crore,’‘ the finance department note has said. According to a strategy paper prepared by the State Finance Department,  ₹43.43 lakh crore investment is needed to add an additional GSDP of ₹15 lakh crore by 2029 to the current GSDP. AP’s GSDP is now estimated at ₹16 lakh crore. 

The government plans to mobilise funds through public investments from State Government., Central Government, government Corporations and Autonomous Institutions, PSUs and private investments. “New policies with an incentive structure while promoting ease of doing business are expected to bring in more investments to the State that can drive both GSDP as well as new job and wealth creation,’‘ said a senior official told businessline while explaining the details of the resource mobilisation strategy. 

Budgetary support

The target is to invest ₹4.8 lakh crore through State Government budgetary support, ₹2.5 lakh crore through Central Government - institutions and PSUs and ₹2 lakh crore by innovative mechanisms will be mobilised via State Government institutions and PSUs.

Key policies identified with investment potential are AP Clean Energy Policy, Industrial Development Policy, Food Processing Policy, Infra, Tourism projects, road & highways, IT services, communication and agriculture etc. Out of projected investment of ₹40.43 crore, 23 per cent ( ₹9.29 lakh crore) is excepted to be driven by the public investments while the rest has to be facilitated by the private players, as per the strategy document.

The sector-wise requitement of investment for next five years has been pegged at₹19.52 lakh crore for services sector and ₹11.97 and ₹5.85 lakh crore, respectively for industries and agriculture and allied activities. The primacy to service sector is due to the intention of Chief Minister Naidu to spur faster job growth and also replicate the services sector - led growth model he adopted in Hyderabad in the erstwhile Andhra Pradesh when he was the Chief Minister.

The strategy for investment - led growth of the State economy over next five years is in line with the Swarnandhra Pradesh Vision 2047 being envisaged by Naidu. The target for Swarna Andhra in 2047 is a $2.4 trillion economy with $42,000 Per Capita Income (PCI).

“If year-on-year growth rate doubles from 7.5 per cent to 15 per cent, GSDP and Per Capita Income would have more than four-fold increase by 4.4 times,’‘ the strategy paper said. The Gross State Domestic Product (GSDP) of Andhra Pradesh at current prices is estimated at ₹ 16.06 lakh crore in 2024-25 reflecting a 12.94 per cent growth over the same previous year. As per the advance estimates released in the latest State Socio-Economic Survey, the growth is driven by balanced performance across the sectors of agriculture, industry, and services. 

Published on March 31, 2025