The Central government has announced multiple initiatives in the budget to support industrial growth, economic development, and job creation in Andhra Pradesh. The main projects include building a Rare Earth Corridor and high-speed rail corridors and funding semiconductor research and development and tourism and agricultural projects and infrastructure development.
Rare Earth Corridor and High-Speed Rail
- The Centre has declared that it will build a dedicated Rare Earth Corridor which will run through Andhra Pradesh. The state is one of four southern states with significant rare earth mineral reserves. The corridor intends to draw investment for mining and processing and research and manufacturing which will generate job openings for young people.
- The state will become a transit route for high-speed rail systems. The seven national corridors include three Andhra Pradesh routes which are Hyderabad-Bengaluru and Hyderabad-Amaravati-Chennai and Chennai-Bengaluru. The total distance of the corridors reaches 1,671 km with 857 km (51%) located in Andhra Pradesh. The remaining 49% will run through Telangana, Tamil Nadu, and Karnataka.
- Project funding has been designated for important initiatives which include the Polavaram project and Amaravati capital city. For 2026-27, Rs. 3,320.39 crore is allocated for Polavaram. Amaravati will receive ₹1,561 crore from the Asian Development Bank (ADB) and the International Bank for Reconstruction and Development (IBRD).
Boost for the Semiconductor Industry
As part of the India Semiconductor Mission 2.0 (ISM) with a proposed outlay of ₹40,000 crore, Andhra Pradesh will host carbide chip and advanced packaging industries in Kurnool and Tirupati. An agreement has been signed for a silicon carbide semiconductor manufacturing unit in Orvakal, Kurnool district, with a planned investment of ₹14,000 crore. Future semiconductor projects in the state may receive additional incentives.
Agriculture Support
The PM-KUSUM scheme together with the PM Surya Ghar program will deliver benefits to farmers operating in Andhra Pradesh. The government will execute its plan to deliver 3 lakh additional agricultural connections through KUSUM together with 2 lakh connections through Surya Ghar.
Tourism Development
The government will establish trekking and hiking routes at Araku through its collaboration with the state government. The development of bird-watching trails at Pulicat Lake will promote tourism activities.
Infrastructure and Institutional Funding
- AIIB allocated ₹500.99 crore to construct rural roads.
- GODE provided ₹155.32 crore to fund the AP Natural Farming Project.
- NDB expects to grant ₹350 crore for road and bridge reconstruction projects.
- The allocation of ₹450 crore to Visakhapatnam Port Trust consists of ₹250 crore from internal sources and ₹200 crore from external sources.
- The allocation of ₹100 crore to Vizag Steel Plant budget.
- The government will provide funding to autonomous institutions through its budget.
- The Atomic Energy Department will give GITAM University a grant of ₹50 lakh.
- The Space Department will provide VR Siddhartha Engineering College a funding grant of ₹12 lakh.
State-Level Grants and Crop Development
- SheMarts grants of ₹20 lakh per mandal for over 670 mandals.
- Central assistance for coconut, cocoa, and cashew horticulture.
- The government will provide central funding to support the establishment of mega textile parks in Dharmavaram, Pithapuram, and Mangalagiri.
Petroleum and Energy Sector
The Ministry of Petroleum allocated ₹302 crore to the Indian Institute of Petroleum Energy in Visakhapatnam. This amount exceeds the previous year’s funding which was set at ₹50 crore.
