Budget proposals set to rev up AP’s development

Vijayawada: Several provisions in the Union Budget 2026 are expected to significantly support the overall development of Andhra Pradesh, spanning urban infrastructure, industry, healthcare, tourism, transport, and rural employment. The announcement of tax holidays up to 2047 for data centres and AI-based industries is expected to boost investments such as the Google Data Centre in Visakhapatnam and proposed AI-driven industries in Amaravati, positioning Andhra Pradesh as a major technology and digital infrastructure hub.

Ongoing projects related to industrial nodes, seaports, and fishing harbours in the state will continue to receive central support. The proposed High-Power Committee and five University Townships in industrial corridors are expected to strengthen skill development. These universities can be linked with the Visakhapatnam Industrial Corridor with the central government assistance, enhancing industry -academia collaboration.

Andhra Pradesh, which has the highest number of Lakhpati Didis in the country, is expected to further strengthen women entrepreneurship through easier credit access under self-help entrepreneurs, enabling the creation of many more Lakhpati Didis. The provision of one women’s hostel per district under the Viability Gap Funding (VGF) scheme will ensure steady fund flow to the state, improving safety and accommodation facilities for working women.

The state stands to benefit from its inclusion in three of the seven high-speed railway corridors, connecting Chennai and Bengaluru, which will improve connectivity, trade, and mobility.

Special fund earmarked for tourism development in Araku Valley and Pulicat Lake is expected to boost tourist inflow and generate employment opportunities for local youth.

However, Andhra Pradesh needs more focused support. The absence of adequate budgetary allocation for the Polavaram Project, which is critical for irrigation, drinking water security, and regional development, is disappointing. The State requires assured funding to enable completion of the Polavaram project by 2027. Similarly, the lack of sufficient allocations for the development of Amaravati, the capital city of Andhra Pradesh, is a missed opportunity. Targeted support for these two priorities would have significantly strengthened the state’s economic momentum and investor confidence.