Andhra Pradesh Government Unveils Massive Economic Development Plans
The Andhra Pradesh state government, during its annual budget presentation on Saturday, announced a comprehensive development initiative for the Visakhapatnam Economic Region (VER). The government is submitting proposals worth Rs 28,000 crore for this region, as recommended by NITI Aayog in its recent report.
Three-Pronged Regional Development Strategy
The VER project, selected at the national level under NITI Aayog's growth hub initiative, encompasses nine districts stretching from Srikakulam to Dr BR Ambedkar Konaseema district. The proposals are expected to receive partial funding from the central government, while the state plans to mobilize a significant portion of funds from the private sector.
Inspired by this initiative, the government has also decided to develop the Amaravati economic region, covering NTR, Krishna, Eluru, Guntur, West Godavari, Prakasam, Palnadu, Bapatla, and Markapuram districts. Following the model of the NITI Aayog study conducted for Visakhapatnam, a comprehensive socio-economic assessment will be undertaken to identify the strengths, resources, and potential growth drivers of these districts.
Rayalaseema's Transformation into Global Horticulture Hub
Simultaneously, the Rayalaseema region is set to be transformed into a global horticulture hub. The Rayalaseema integrated development plan envisages expanding the horticulture area from 8.41 lakh hectares to 14.41 lakh hectares by 2030. The plan includes assured water supply through irrigation and micro-irrigation projects, along with improved road connectivity to facilitate access to global markets. The state is preparing proposals worth Rs 30,000 crore for this ambitious project.
Government's Vision for Inclusive Growth
Finance Minister P Keshav stated that the government has adopted a regional approach to ensure inclusive growth, implementing Vision Swarna Andhra@2047 and meeting regional aspirations. "We have identified three regions — Visakhapatnam, Amaravati, and Tirupati — as the key growth engines of Andhra Pradesh. Working closely with NITI Aayog, we have developed an economic master plan for the Visakhapatnam economic region. We are submitting proposals worth nearly Rs 28,000 crore for VER, including a metro rail project," he explained.
NITI Aayog's Ambitious Roadmap
The recently released NITI Aayog report outlines a comprehensive roadmap to transform the Visakhapatnam Economic Region into a major global economic center by 2047. The targets include achieving a GDP of $125 to $135 billion by FY32 and $750 to $800 billion by FY47. Seven key growth drivers are expected to generate $60 to $70 billion in Gross Value Added (GVA) and create 2 to 2.4 million jobs by 2032.
Strategic Development Focus Areas
A major focus area is the development of a port-based manufacturing hub, with specialized clusters in:
- Steel and aluminum production
- Shipbuilding and defense manufacturing
- Chemical processing industries
- Clean technology development
- Green hydrogen and ammonia production
The region will also build a robust digital and innovation ecosystem through several strategic initiatives:
- AI and data center hub at Anandapuram
- IT and Global Capability Center (GCC) hub at Kapuluppada
- Expanded Madhurawada IT Park
- High-speed subsea cable landing station
Collectively, these digital infrastructure projects are projected to create 4 lakh jobs and add $8 to $10 billion in GVA by FY32.
Balanced District-Level Development
The development plan ensures balanced growth across the nine districts with specialized focus areas:
- Anakapalli: Industrial development
- ASR District: Tourism promotion
- East Godavari and Konaseema: Agricultural advancement
- Srikakulam: Healthcare infrastructure
- Visakhapatnam: Advanced IT and innovation ecosystem
Major Infrastructure Projects
The budget also allocated funds for several key proposals and institutions in and around the Visakhapatnam region, including a block grant for Andhra University (Rs 389 crore) and Bhogapuram airport (Rs 155 crore). Additional infrastructure projects include:
- Aerocity project spanning 300 acres near the upcoming Bhogapuram international airport
- Integrated international care hub covering 700 to 800 acres near Bhogapuram
- Education, skilling, and innovation hub in 150 acres near Indian Institute of Management, Visakhapatnam
- IT and data center hub in 300 acres near Anandapuram, anchored on Google's AI hub at Tarluwada
- Subsea cable landing station at Visakhapatnam
- IT, GCC, and data center hub in 300 acres at Kapuluppada
- 1,000 acres earmarked for expansion of Madhurawada IT Park
This comprehensive development strategy represents Andhra Pradesh's commitment to transforming its economic landscape through targeted regional development, public-private partnerships, and strategic infrastructure investments aligned with national growth objectives.
