Andhra Pradesh leads proposed investments in FY26; power sector tops announcements

.

• Andhra Pradesh led proposed investments in India with 25.3% in April–Dec FY26.
• Electricity sector received the highest investment intentions at 22.6% of total
• Top five states accounted for about 68% of total proposed investments

Did our AI summary help?

Andhra Pradesh accounted for the largest share of proposed investments in India during the first nine months of FY26, capturing 25.3% of total investment announcements, according to a research note released by Bank of Baroda.

Data compiled by the bank from Centre for Monitoring Indian Economy (CMIE) shows that investment intentions across the country during April–December FY26 stood at Rs 26.62 lakh crore, compared with Rs 23.88 lakh crore in the same period last year. Andhra Pradesh emerged as the top destination, ahead of Odisha (13.1%) and Maharashtra (12.8%), indicating a sharp concentration of new projects in a few states .

Andhra Pradesh minister Nara Lokesh said the data reflected growing investor interest in the state. “Andhra Pradesh has emerged as the leading destination for proposed investments, reflecting the confidence of investors in the state’s policy framework and industrial infrastructure,” he said in a press statement on January 2.

Telangana (9.5%) and Gujarat (7.1%) completed the top five states, with these five together accounting for about 68% of total proposed investments during the period, the report said. Other states that saw notable investment announcements included Tamil Nadu (4.9%), Rajasthan (4.3%) and Chhattisgarh (3.9%) .

Sector-wise, electricity emerged as the largest recipient of investment intentions, accounting for 22.6% of total announcements. Bank of Baroda said renewable energy projects formed a significant part of this segment. Chemicals and chemical products followed closely with a 21.8% share, while metals and metal products accounted for 17.3% of proposed investments during the period .

Information technology (10.9%) and transport services (7.9%) rounded out the top five sectors. Together, these five sectors accounted for nearly 80% of all investment announcements, highlighting a strong tilt towards infrastructure- and capital-goods-led investments, the report noted.

The Bank of Baroda report added that the increase in investment announcements augurs well for capital formation, which is currently estimated at around 30–31% of GDP. As consumption improves, investment activity could broaden across sectors and states beyond the present infrastructure-led concentration, it said.