Govt. sets its sights on attracting FDI into strategic sectors in Andhra Pradesh

As part of its efforts to attract big-ticket investments, the Andhra Pradesh government is focusing on mobilising Foreign Direct Investment (FDI) into the strategic sectors, namely AI infrastructure, critical minerals, semiconductors, energy transition and advanced technologies, in tune with the current economic trend, wherein the given sectors account for about 45% of greenfield projects being set up around the world.According to official sources, the State government is according due priority to the traditional manufacturing sector.Taking note of the status of the upcoming projects, Chief Minister N. Chandrababu Naidu has said that there is strong investment momentum across both large industries and MSMEs, but the focus on strategic sectors should be intensified to broaden the investment pipeline and provide a favourable base for future industrial expansion and employment.Accordingly, the investment outlook is being fine-tuned so that it is inclusive of the emerging sectors and steps are taken to give a fillip to the subdued manufacturing growth.Officials have been instructed to concentrate on converting grounded investments into actual production and employment, and remove the bottlenecks that hamper industrial growth.The Chief Minister’s suggestions assume significance in view of the upcoming CII Partnership Summit to be held in Visakhapatnam later this year.Welcoming the government’s focus on strategic sectors, Confederation of Indian Industry-AP Chairman S. Narendra Kumar told The Hindu that while attracting mega investments, the government should strengthen the MSME ecosystem, which was extremely crucial to take the State’s overall industrial growth to a higher trajectory.He expressed the opinion that the government could consider framing a rule that the mega industries should buy at least 20% of the components required by them from the local suppliers so that MSMEs in Andhra Pradesh would be able to flourish.He suggested that the manufacturing ecosystems in Gujarat, Karnataka, Maharashtra and Tamil Nadu should be studied to possibly replicate their best practices. For Andhra Pradesh to become an industrial powerhouse, the large industries and MSMEs must together constitute a vibrant ecosystem, he observed.AP Chambers of Commerce & Industry Federation President P. Bhaskar Rao said the State had 20 lakh-plus MSMEs and their potential had to be realised so that they would lend the much-needed muscle to the State’s economy. Published - September 06, 2026 08:08 pm IST