Bouquet of Goodies for AP in Central Budget

Vijayawada: Andhra Pradesh would benefit majorly from the Union Budget 2026–27, with the Centre extending targeted support for industrial development, tourism, coastal agriculture and infrastructure along the East Coast.

Presenting the Budget in Parliament, finance minister Nirmala Sitharaman announced that AP would be among the mineral-rich states linked for a set of rare earth corridors, aimed at boosting mining, processing, research and advanced manufacturing.

The move is expected to strengthen the state’s role in strategic sectors such as clean energy, electronics and electric mobility.

The Budget also proposed the development of an integrated East Coast Industrial Corridor under the Purvodaya initiative, a measure expected to accelerate industrial growth, logistics connectivity and employment generation in coastal states, including Andhra Pradesh.

The Centre had earmarked ₹3,320.39 crore for the Polavaram irrigation project, a lifeline for the state.

An amount of ₹1,128.91 crore was allocated for the development of Amaravati, while ₹432.09 crore was sanctioned for integrated urban development in the capital region. Rural road projects would receive ₹500.99 crore, urban drinking water supply and sewerage management ₹800 crore, and the reconstruction of roads and bridges ₹350 crore. In addition, ₹155.32 crore was allocated to promote natural farming practices, he noted.

In a major boost to tourism, Araku Valley in the Eastern Ghats has been identified for the development of ecologically sustainable mountain trails, positioning it as a premium eco-tourism destination.

Further, Pulicat Lake, shared by Andhra Pradesh and Tamil Nadu, would be developed as a bird-watching trail, strengthening nature-based tourism and local livelihoods.

The agricultural sector in AP is set to gain from renewed focus on high-value coastal crops such as coconut, cashew and cocoa. A national coconut promotion scheme announced in the Budget would support productivity enhancement in major coconut-growing states, including Andhra Pradesh.

The fisheries sector is also expected to benefit from initiatives to strengthen value chains in coastal regions through market linkages, women-led groups and fish farmer producer organisations.

Urban development in the state could receive a fillip through the proposed City Economic Regions, under which Tier-II and Tier-III cities would be eligible for reform-linked funding of ₹5,000 crore per region over five years.

The Budget would accelerate the industrial push in Andhra Pradesh. These sectors would gain greatly from the proposed high-speed rail corridors, Hyderabad–Bengaluru, Hyderabad–Chennai, and Bengaluru–Chennai. These corridors will connect major growth centres such as Amaravati and Tirupati, while also covering Palamaner, Chittoor, and other regions.

Further, these projects would integrate Hyderabad, Amaravati, Bengaluru and Chennai to create one of the most dynamic economic corridors in the world, and transform regional connectivity and economic activity, catering to a population of over five crore of the state.

Sitharaman stated during the Budget speech, “We propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors to promote mining, processing, research and manufacturing.”

She said, “I propose the development of an integrated East Coast Industrial Corridor under the Purvodaya initiative. We will develop ecologically sustainable mountain trails in Araku Valley in the Eastern Ghats. Bird-watching trails will be developed along Pulicat Lake in Andhra Pradesh and Tamil Nadu. High-value crops such as coconut, cashew and cocoa in coastal areas will be supported to enhance farmers’ incomes.”

A coconut promotion scheme would be launched to improve productivity in major coconut-growing states. City Economic Regions would be developed with an allocation of ₹5,000 crore per region over five years through a challenge-based approach,” the finance minister added.