Port-Led Growth Takes AP into Top Tier of NITI Aayog's Export Rankings

Visakhapatnam: Andhra Pradesh is witnessing a major shift in its exports’ landscape, with pharmaceuticals and textiles emerging as key growth sectors, according to the Export Preparedness Index (EPI) 2024 released by NITI Aayog.

The development is a welcome feature as AP has traditionally relied on agricultural and marine exports.

Pharmaceutical sector has now become one of Andhra Pradesh's most-resilient pillars of exports, with Visakhapatnam emerging as the nerve centre of this growth. The port city hosts one of India's largest concentrations of bulk drug and formulation manufacturing units on the back of pharmaceutical Special Economic Zones (SEZs) and dedicated industrial parks.

Vizag's pharma clusters cater to both regulated and semi-regulated markets, exporting active pharmaceutical ingredients (APIs), intermediates, and finished formulations to countries across Asia, Africa, Europe, and Latin America.

Industry officials note that the city's strategic port location reduces logistics costs and turnaround time, giving exporters a competitive edge in global markets.

The NITI Aayog EPI assessment is indicative of AP's strengthening business ecosystem, particularly improved access to utilities, logistics, and industrial estates, for bolstering the pharma sector's export potential.

The EPI report, however, flags persistent challenges, like skill gaps in pharmaceutical manufacturing, particularly in specialised production processes and compliance-driven roles.

Alongside pharmaceuticals, textiles have also emerged as a huge growth driver in the state's exports portfolio, as per the NITI Aayog. Andhra Pradesh has been steadily expanding its presence in yarn, fabrics, garments, and home textiles, with production clusters spread across Rayalaseema and coastal districts.

EPI 2024 highlights textiles as a sector with strong exports. Officials note that integrated textile parks and cluster-based development could help AP tap into shifting global sourcing patterns, as international buyers seek manufacturing alternatives.

But structural problems persist in the textiles’ sector too, involving issues of fragmented production, uneven infrastructure in inland districts, and limited access to global buyers.

EPI underscores the need for improved logistics connectivity, industry-aligned skilling programmes, and branding support to help textile units integrate more effectively into global supply chains.

The EPI notes that Andhra Pradesh has aligned its industrial and export strategies with national goals, including the target of achieving $1 trillion in merchandise exports by 2030 under the Viksit Bharat 2047 vision.

Points:

Andhra Pradesh: Pharma and Textiles’ Exports:

- Total Exports (FY24): Rs 1.6 lakh crore

- Export CAGR (FY20–24): 6%

- GSDP: Rs 14.4 lakh crore.

- Coastline: 974 km.

Visakhapatnam Anchors Pharma Exports:

- Port-led logistics ecosystem

- Pharma SEZs and API clusters

- VCIC connectivity to global markets

- Integrated manufacturing base

AP Textiles—Emerging Export Opportunity:

- Strong cotton and handloom base

- Shift toward garments and technical textiles

- High employment potential

- Global sourcing diversification opportunity