Southern states emerge as preferred investment hubs, Andhra captures top spot in FY26

India’s investment landscape is increasingly shifting toward the southern and eastern corridors, with Andhra Pradesh emerging as the country’s top investment destination in FY26 so far. In the period from April to December 2025 , the state captured 25.3% of all proposed investments, followed by Odisha (13.1%), Maharashtra (12.8%), Telangana (9.5%), Gujarat (7.1%) and Tamil Nadu (4.9%). A significant 51.2% of all proposed capital is now concentrated in the top three states. Overall, investment announcements during this period rose 11.5% to ₹26.6 lakh crore compared to the same period last year.

In Andhra Pradesh , major proposed investments focus on digital infrastructure, renewable energy, and industrial expansion. Landmark projects include Google’s $15 billion hyperscale data centre in Visakhapatnam and a ₹98,000 crore joint venture for data centres between Reliance Industries, Brookfield and Digital Realty . Additional MoUs for cloud and AI infrastructure by Anant Raj Group and Tillman Global Holdings strengthen the tech ecosystem. Renewable energy commitments from ReNew Energy Global and large portfolio plans from the Adani Group across ports, logistics and manufacturing underscore the state’s diversified appeal. Andhra has also cleared 26 major projects worth over ₹1 lakh crore , expected to generate more than 85,000 jobs across IT and data centres, renewable energy, manufacturing, logistics, and supporting services..

AP CM N.Chandrababu Naidu welcomed the milestone, saying it reflects the state’s policy reforms and Speed of Doing Business initiatives, and thanked investors while emphasizing continued growth and strong partnerships.

Odisha’s investment momentum is anchored in its mineral wealth, steel and metal production, and port-based infrastructure . Companies like JSW Steel, Tata Steel and Vedanta have expanded or proposed capacity additions, leveraging the state’s rich resources and strategic east coast ports. Industrial corridors connecting Paradip, Dhamra and Gopalpur ports have attracted investments in metals, chemicals and fertilizer value chains.

In Maharashtra , investments are driven by its financial and industrial centres , with inflows in automobiles, IT, infrastructure, and renewable energy . Key players such as Tata Motors, Mahindra & Mahindra, Hyundai and Volkswagen continue to expand manufacturing and EV capacity. IT firms and renewable energy projects also maintain the state’s industrial strength.

Telangana has grown as a destination for technology, aerospace, life sciences and renewable energy . Hyderabad attracts global tech companies like Microsoft, Google, Deloitte and Amazon for data centres, cloud services, and AI infrastructure. Aerospace and defence suppliers such as Boeing, Airbus and Tata Advanced Systems are also expanding operations, while renewable energy projects gain traction with solar and green hydrogen initiatives.

Gujarat’s investment appeal lies in export-oriented manufacturing, industrial clusters and port infrastructure . Major hubs like Dahej, Vadodara and Mundra attract companies including Reliance Industries, Adani Group, BASF and LG Chem, particularly in petrochemicals, polymers and industrial gases. Shipbuilding, logistics parks and high-capacity power generation further enhance its investment ecosystem.

Tamil Nadu , ranking sixth, continues to be one of India’s most execution-ready industrial hubs. Since 2021, the state has signed over 1,176 MoUs worth ₹12.16 lakh crore , of which nearly 80% are under execution. Key sectors include automobiles, EVs, advanced electronics, IT, aerospace, defence, renewable energy, and maritime manufacturing. Domestic companies such as Tata Group and Adani Group, alongside foreign investors like Sembcorp (Singapore) and VinFast (Vietnam), continue to expand operations, reflecting confidence in the state’s strong execution record and stable industrial policies.

Compared to FY25 , the investment landscape has seen a notable shift. Last year, Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Delhi led in investment inflows, while states like Andhra Pradesh, Odisha, and Telangana were emerging players. The current FY26 rankings highlight how these emerging southern and eastern states have gained momentum, reflecting stronger policy support, sector-specific initiatives, and investor confidence.

Together, these six states are shaping India’s next phase of industrial growth. Andhra Pradesh leads in proposed investments, Odisha and Maharashtra leverage industrial depth and logistics, Telangana focuses on tech and aerospace, Gujarat drives export-oriented manufacturing, and Tamil Nadu combines scale with execution strength. Their performance underscores India’s increasingly diversified investment landscape, offering scale, connectivity and long-term policy certainty to domestic and global investors.