The Andhra Pradesh government in its 2025-26 budget has allocated Rs 4,432 crore for Industries, Commerce, Infrastructure and Investment. This is marginally higher than last year’s allocation of Rs 4,361 crore – a difference of Rs 71 crore.
Andhra finance minister Payyavula Keshav criticized the previous YSR Congress Party (YSRCP) government for driving industries away and leaving more than Rs 11,000 crore in pending dues for incentives to industries, MSMEs, SC & ST entrepreneurs, and other businesses. The YSRCP had spent Rs 1,266 crore for Industries, Commerce, Infrastructure and Investment.
“The NDA government has already cleared Rs 377 crore in pending dues, and Chief Minister Chandrababu Naidu is now focused on enhancing the speed of doing business,” Keshav stated.
To improve connectivity and support industrial growth, Rs 837 crore has been earmarked for three major industrial corridors: Visakhapatnam-Chennai, Chennai-Bengaluru, and Hyderabad-Bengaluru. Additionally, Rs 1,400 crore has been set aside for incentives to industries, MSMEs, and food processing units, aiming to stimulate investment and entrepreneurship in the state.
The budget also includes an allocation of Rs 210 crore for skill development initiatives, including Industrial Training Institutes (ITI), IIIT (Sri City), and the State Institute of Hospitality Management (Kakinada). Furthermore, Rs 605 crore has been assigned to airports and industrial nodes, while Rs 305 crore has been designated as incentives for IT and electronics industries and organizations.