Vijayawada: The Vijayawada urban mandal became one of the growth engines for the state after Gajuwaka in Visakhapatnam district and Kalidindi in Krishna district, according to the latest figures released by the state government on mandal-wise gross domestic product data.
The growing hospitality industry and increased revenue from commercial taxes are the major sectors which have been contributing for the growth of the economy from Vijayawada urban mandal.
Apart from that, the transportation infrastructure like air travel, railway connectivity and well-established road connectivity to the entire country are its advantages, experts observed.
The revenue from registrations, construction and allied sectors, including steel and cement sectors, liquor consumption, education, medical & health, food processing, and other growing sectors have been largely contributing to the growth of the gross domestic product from the Vijayawada urban area, observed Mr V. Bhaskara Rao, president of the Vijayawada Chamber of Commerce and Industry.
He stated that in the education sector, there are about 1.23 lakh students who studied intermediate, roughly 25,000 students studying Chartered Accountancy and other related courses, medical and health colleges, and engineering colleges, apart from the schools in the city contributing to the economy, he observed.
Moreover, he informed that after bifurcation of Andhra Pradesh, cement companies of Jaggayyapet and Nandgama and other companies shifted their headquarters from Hyderabad to Vijayawada.
He said that, the companies would pay taxes to the government from where the headquarter functions. Hence the revenue from Vijayawada increased automatically.
He also observed that still there are many companies that have to shift their headquarters from Hyderabad to Vijayawada. He said that if they shift their headquarters to Vijayawada, then the revenue will increase.
After announcing Amaravati as the state capital, Vijayawada city gained much importance and even foreign delegates are staying in the city and contributing to economy. The entertainment sector, including cinema halls are also contributing to the economy from the city, Mr Rao observed.
