Industry bodies FAPCCI, VCCI, and AP Chambers have welcomed the Union Budget, anticipating significant growth opportunities for Andhra Pradesh, particularly in Visakhapatnam, due to its focus on MSMEs, infrastructure, and industrial development. The budget’s provisions are expected to boost economic activity and employment across the state. Kankatala Mallikharjuna Rao, past President of FAPCCI, highlighted the budget’s targeted support for micro, small, and medium enterprises (MSMEs). He specifically welcomed the proposed ₹4,000 crore allocation to the Self-Reliant India Fund for 2026–27, aimed at improving access to capital for small businesses.He also pointed to the proposal to deploy “corporate mitras” in Tier-II and Tier-III cities, who will help MSMEs with market access, regulatory compliance, and business growth facilitation.
Referring to the proposed ₹5,000 crore outlay over five years for the Visakhapatnam Economic Region, Rao said the move recognizes Visakhapatnam as a national growth hub. The region is envisioned to integrate port-led trade, industrial development, tourism, agriculture, and services.
Effective implementation, he added, could significantly improve infrastructure, logistics networks, and industrial parks, creating strong demand for MSMEs in construction, transport, warehousing, and allied services.
M Sudharsan Swami, President of VCCI, said the budget offers substantial opportunities for Andhra Pradesh, provided there is effective coordination between government and industry.
He noted that the budget’s emphasis on logistics, ports and coastal shipping, and freight corridors aligns closely with the state’s natural maritime advantages.
Swami also highlighted the proposed Rare Earth Minerals Corridor, which could support high-value manufacturing in sectors such as electronics, electric mobility, and advanced materials.
Additionally, proposals for container manufacturing, chemical and advanced manufacturing parks, and incentives for electronics and semiconductor industries are expected to attract fresh investment and create skilled and semi-skilled employment opportunities.
P Sobhan Prakash, Zonal Chairman of AP Chambers, described the budget as having a long-term strategic vision. He pointed to the increase in capital expenditure to ₹12.22 lakh crore in 2026–27, which is expected to drive employment generation and industrial competitiveness.
He also welcomed the focus on building a full semiconductor value chain and highlighted the tax holiday until 2047 for AI and cloud firms using Indian data centers. This, he said, could position Visakhapatnam as a major digital infrastructure destination.
Industry leaders agree that the Union Budget lays a strong foundation for Andhra Pradesh’s next phase of growth. With focused investments in MSMEs, infrastructure, ports, advanced manufacturing, semiconductors, and digital infrastructure, the state—particularly Visakhapatnam—is well-positioned to emerge as a key industrial and employment hub in the coming years, provided execution remains timely and industry collaboration stays strong.
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