Naidu’s AP Rises To 2nd, Modi’s Gujarat At 4th In Investments!

For many years, Maharashtra and Gujarat dominated India’s investment rankings, with Tamil Nadu also among the leading states. However, the investment map is now changing.

Andhra Pradesh is quickly emerging as one of India’s top investment destinations. The state has moved from 9th place in FY24 to 5th in FY25 and now to 2nd place in FY26 in fresh investments, according to data from Business Standard and Projects Today, a tracking firm.

The sharp rise shows the growing interest of investors in Andhra Pradesh. The state has moved up seven places in just two years, making it one of the biggest improvements among major Indian states.

States such as Andhra Pradesh, Rajasthan, Madhya Pradesh and Uttar Pradesh are attracting a growing share of new investments, according to Projects Today, which tracks investment activity across the country.

Andhra Pradesh’s growth is being supported by policy reforms, faster project execution and efforts to improve investor confidence through stable administration and governance. The strong leadership of AP led by CM Chandrababu Naidu is behind the investors confidence. The state is also focusing on moving from “Ease of Doing Business” to “Speed of Doing Business.”

The state is attracting investments in sectors such as electronics, renewable energy, artificial intelligence, IT, advanced manufacturing and logistics.

The latest ranking indicates that Andhra Pradesh is becoming a strong competitor to the traditional investment leaders and is gaining a bigger role in India’s investment story.

Interestingly, Andhra under Naidu has climbed to the second spot, while Gujarat, PM Modi’s home state and one of India’s traditional investment leaders, stands at fourth place. The contrasting rankings highlight how significantly the investment landscape is shifting across the country.