Andhra Pradesh has emerged as India’s leading investment destination, capturing 25.3 per cent of the total proposed capital investment in the first nine months of the current financial year 2025–26, according to a Bank of Baroda report. The achievement places the state ahead of major industrial peers and highlights a clear shift in investment momentum toward eastern and southern India.

The report shows that Andhra Pradesh has outperformed Odisha, which attracted 13.1 per cent of proposed investments, and Maharashtra with 12.8 per cent. Together, Andhra Pradesh, Odisha and Maharashtra accounted for 51.2 per cent of India’s total proposed investments during the period. Across the country, investment announcements stood at Rs 26.6 lakh crore, reflecting an 11.5 per cent year-on-year increase.

Bank of Baroda attributed the improved investment sentiment to a supportive policy environment. Higher government spending on capital expenditure, cuts in income tax rates and the rollout of GST 2.0 have strengthened business confidence. These measures have helped offset, to some extent, the impact of higher tariffs imposed by the United States on Indian exports. A trend of easing interest rates has also supported the pick-up in investment activity.

Sector-wise data show that power dominates proposed investments with a share of 22.6 per cent, driven largely by renewable energy projects. The metals sector accounts for 17.3 per cent, reflecting strong demand from infrastructure, automobile and housing projects. Construction has maintained a steady share of 4 per cent, covering both housing and commercial developments, while strong interest is also visible in roads and ports.

Among states, the top five — Andhra Pradesh, Odisha, Maharashtra, Telangana with 9.5 per cent and Gujarat with 7.1 per cent — together account for nearly 68 per cent of total proposed investments. Industry observers say Andhra Pradesh’s growing share reflects a broader realignment of India’s growth geography, positioning the state as a key driver of the country’s next phase of industrial expansion.