CM Naidu announces Visakha Economic Region, aims for a $120 billion economy by 2032

Amaravati: Chief Minister N Chandrababu Naidu has directed officials to develop the ‘Visakha Economic Region’ as the growth engine of Andhra Pradesh, aiming for a $120 billion economy from this region by 2032.

He highlighted the need to transform Visakhapatnam into another Mumbai in the next seven years. The Economic Region includes eight districts—Visakhapatnam, Vizianagaram, Srikakulam, Anakapalli, Kakinada, East Godavari, ASR and Manyam—and the chief minister instructed officials to develop projects that will boost economic activity across this 8-district zone. He also ordered the identification of one lakh acres for various projects.

The Visakha Region spans 36,000 square kilometres and is home to a population of 15.5 million. Its current GDP is around $49 billion. The chief minister noted that the region could generate 20 to 24 lakh jobs by 2032, making it crucial to the State’s future growth.

7 growth drivers identified

During a review meeting on Friday with NITI Aayog officials at the Secretariat, the chief minister discussed the development of the Visakhapatnam Economic Region.

He proposed development centred around 6 ports, 7 manufacturing nodes, 17 major agricultural zones, 6 service hubs, and 12 tourism hubs.

NITI Aayog officials presented a detailed PowerPoint presentation. The officials outlined plans around seven growth drivers: ports, IT, agriculture, tourism, healthcare, urban development, and infrastructure. A total of 41 key projects are to be prioritised for implementation.

‘7.5 lakh housing units in seven years’

If these plans are realised within the next seven years, the region could see the construction of 7.5 lakh housing units, 10,000 hotel rooms, up to 20 innovation centres, 10 colleges, 7,000 hospital beds, industrial development across 20,000 hectares, 80 million sq. ft. of office space, and 60 million sq. ft. of warehousing capacity.

Coastal corridor as a wealth generator

“We will develop beach roads from Mulapeta to Visakhapatnam and from Visakhapatnam to Kakinada. These will be connected to national highways. The coast is a treasure trove—we must leverage it fully. Tourism is being treated as an industry, and our new policy is very investor-friendly. With future needs in mind, we will ensure continuous skill training for youth. We're adopting 'Work from Home' and Knowledge Economy outsourcing models. The goal is to provide work-from-home opportunities to 20 lakh people,” said the chief minister.

Other issues discussed include:

- Developing Visakhapatnam as a steel hub in collaboration with the country’s top 3 steel firms; focus on petrochemicals, gas grid, port development, petrochem-medical tech, shipbuilding, defence, electronics, clean tech and labour-intensive manufacturing.

- Target of 4-5 lakh jobs in the IT sector over the next 7 years; emphasis on setting up data centres, startups, and innovation hubs.

- In addition to four ongoing railway projects, seven new railway projects are to be completed by 2032.

- Launching nine new road projects to support manufacturing nodes and ports.

- Discussion on the Vizag Metro project, covering 77 km, scheduled between 2028 and 2030.

‘AP’s power reforms a national model’

“In 1998, we pioneered power sector reforms in the country. In 2014, we prioritised renewable energy, which now enables the lowest-cost power generation. With advances in technology, we’ve made remarkable strides. We're now implementing new policies where people can become both producers and consumers of power. If individuals generate their own electricity, distribution losses can be eliminated. EV adoption will drastically reduce transportation costs. We’re focusing on solar, wind, pumped hydro, battery storage, and green hydrogen. Andhra Pradesh has abundant resources to support this vision. I seek NITI Aayog’s support to realise it,” said the chief minister.

Plans to enhance power capacity

A Memorandum of Understanding was signed between the Government of Andhra Pradesh, NITI Aayog, and the ISEG Foundation in the presence of the Chief Minister for the State Energy Transition Roadmap. The details of the agreement include:

- The current installed power generation capacity in the state is 27.3 GW.

- Electricity demand in the state increased from 55.6 BU in 2019 to 69.7 BU in 2025. Industrial demand grew by 4.8% and household demand by 5.1%.

- Power demand is projected to rise from 88.6 BU next year to 163.9 BU by 2035.

- Under the AP Integrated Clean Energy Policy, the 2029 targets include: 78.50 GW solar, 35 GW wind, 22 GW pumped storage, 1.50 MMTPA green hydrogen, 25 GW battery storage, 1,500 KLPD ethanol, 5,000 EV charging stations, and 10,000 TPD bio-CNG/CBG.

- The State has already attracted Rs 5.78 lakh crore investments in clean energy, enabling 57.7 GW of power generation.