Andhra Pradesh Eyes Up to Rs 9 Lakh Crore Investment in Visakhapatnam Economic Region

The Andhra Pradesh government is targeting investments of up to Rs 9.5 lakh crore across the Visakhapatnam Economic Region, positioning the coastal region as the state’s primary growth engine through a mix of public and private capital.

How will the investment be split between government and private sources?

As part of the VER project, the state government plans to invest between Rs 3.5 lakh crore and Rs 4 lakh crore directly, while working to attract up to Rs 5.3 lakh crore from private investors. Chief Minister N Chandrababu Naidu reviewed the VER development plan at a meeting, directing officials on next steps for implementation.

What is the anchor project driving this development?

The state is positioning the “Bay City” project as the anchor initiative for the VER, aiming to develop the entire Visakhapatnam region through detailed, micro-level planning. Naidu said the goal is to build out the region systematically, spanning ports, industry, tourism and urban infrastructure.

What is the broader geographic and economic scope of the region?

The Visakhapatnam Economic Region spans eight districts, including Visakhapatnam, Vizianagaram, Srikakulam, Anakapalli, Kakinada, East Godavari, ASR and Manyam, covering roughly 36,000 square kilometres and a population of 15.5 million. Its current GDP stands at around USD 49 billion, with the state targeting growth to a USD 120 billion economy by 2032.

Which sectors are expected to drive this growth?

The plan is built around seven growth drivers: ports, IT, agriculture, tourism, healthcare, urban development and infrastructure, with development planned around six ports, seven manufacturing nodes, 17 major agricultural zones, six service hubs and 12 tourism hubs. Officials have also flagged plans to develop Visakhapatnam as a steel hub in partnership with top domestic steel producers, alongside a focus on petrochemicals, gas grid infrastructure, port development, shipbuilding, defence, electronics and clean technology manufacturing.

What employment impact is the region expected to generate?

The government estimates the VER could generate between 20 and 24 lakh jobs by 2032, including work-from-home opportunities for roughly 20 lakh people, reinforcing its role as a critical driver of the state’s broader economic ambitions.