Andhra Pradesh Charts a Bold Path to Industrial Growth and Development with Central Government Support

Andhra Pradesh Charts a Bold Path to Industrial Growth and Development with Central Government Support

Andhra Pradesh is accelerating its ambitious development and investment plans with strong backing from the central government. In a recent high-level meeting in New Delhi, the state’s Education and Information Technology Minister, Nara Lokesh, met with Prime Minister Narendra Modi to discuss strategic initiatives that will drive industrial growth and economic transformation across Andhra Pradesh.

A key highlight of the discussion was the approval of a cutting-edge Advanced System in Package (ASIP) semiconductor manufacturing unit in the state. This project, undertaken through a partnership with South Korea’s APACT Co. Ltd., will have a capacity to produce 96 million semiconductor units annually. It is part of a broader national push where four new semiconductor projects were approved by the Union Cabinet in August 2025, totaling an investment of around Rs 1.60 lakh crore spread over six states.

Minister Lokesh emphasized Andhra Pradesh’s readiness to become a hub for IT and electronics industries, highlighting the potential for massive job creation and inclusive economic development under Chief Minister N. Chandrababu Naidu’s leadership. The central government’s role in facilitating these investments was acknowledged as a cornerstone for the state’s transformation objectives.

Another significant topic of the meeting was the recent landmark GST reforms introduced by the central government. These reforms bring a simplified tax regime with just two main slabs of 5% and 18%, along with a 40% rate for luxury and demerit goods, effective from September 22, 2025. Lokesh noted that this rationalization will provide substantial relief to millions of micro, small, and medium enterprises and reduce financial burdens on middle-class families, especially during the festive season. The reforms are expected to stimulate consumer spending and accelerate economic activity across Andhra Pradesh and the country.

Beyond immediate industrial and fiscal measures, Andhra Pradesh reaffirmed its long-term vision aligned with India’s Viksit Bharat 2047 goal, aimed at making India a fully developed nation by its centenary of independence. The state's "Swarna Andhra 2047" initiative sets ambitious targets to transform Andhra Pradesh into a $2.4 trillion economy with a per capita income of $42,000 by 2047. Prime Minister Modi expressed strong support for these goals and assured full cooperation from the central government.

As a token of appreciation and cultural pride, Minister Lokesh presented the Prime Minister with a coffee table book celebrating Yogandhra festivities held in Andhra Pradesh in June 2025, symbolizing the state’s rich heritage and its dynamic future.

This collaborative engagement between Andhra Pradesh and the central government signals a powerful momentum for regional growth, technological advancement, and socio-economic development. With focused investments in semiconductor manufacturing, supportive GST reforms, and visionary long-term plans, Andhra Pradesh is poised to play a pivotal role in India’s journey toward a prosperous and developed future.