Amaravati, July 28: Andhra Pradesh improved its position in attracting Foreign Direct Investment (FDI) during calendar year 2025, climbing to 10th place nationally with a 1.03% share of India’s FDI equity inflows. However, the state’s cumulative performance since October 2019 remained modest, accounting for just 0.51% of the country’s total FDI equity and placing it 13th among States, according to the latest data released by the Department for Promotion of Industry and Internal Trade (DPIIT).
The latest figures assume significance as they come after a series of high-profile investment announcements by the Andhra Pradesh Government across sectors such as data centres, manufacturing, renewable energy and logistics. Among them, the proposed Google-linked US$15 billion AI Data Centre project, signed in October 2025, attracted national attention because of its announced investment size.
Since the latest state-wise FDI statistics cover investments only up to December 2025, they do not yet reflect any significant inflow corresponding to the proposed Google-linked project. The official figures primarily capture FDI that has already been realised rather than investment announcements or Memoranda of Understanding (MoUs).
According to the DPIIT data, Andhra Pradesh received US$591.86 million in FDI equity during January-December 2025. The state’s cumulative FDI equity inflows from October 2019 to December 2025 stood at US$1.70 billion (₹13,876 crore).
AP’s FDI Performance Shows Improvement in 2025
The annual rankings indicate that Andhra Pradesh’s FDI performance has fluctuated over the past few years.
| Period | AP Rank |
| Oct. 2019 – Oct. 2021 (Cumulative) | 14 |
| 2022 | 11 |
| 2023 | 13 |
| 2024 | 12 |
| 2025 | 10 |
| Oct. 2019 – Dec. 2025 (Cumulative) | 13 |
While 2025 marked Andhra Pradesh’s best annual ranking during the period, the cumulative figures indicate that the state is yet to emerge as one of India’s principal destinations for foreign investment.
FDI Continues to Be Concentrated
Foreign investment remained concentrated in a handful of states. Maharashtra, Karnataka, Gujarat, Delhi, Tamil Nadu, Haryana and Telangana together accounted for about 95% of India’s cumulative FDI equity inflows between October 2019 and March 2026, leaving the remaining states to share only about five per cent of the total.
India received US$58.85 billion in FDI equity during FY 2025-26, compared with US$50.02 billion in the previous financial year. However, the figure remained below the US$59.64 billion recorded in FY 2020-21.
Software Sector Leads FDI
Computer Software & Hardware remained the largest recipient of FDI during calendar year 2025, accounting for 23% of total equity inflows. It was followed by the Services sector (18%), Trading (7%), Non-Conventional Energy (5%) and Food Processing Industries (5%). Singapore continued to be India’s largest source of FDI, followed by the United States, Mauritius, Japan and the Netherlands.
The latest data present a mixed picture for Andhra Pradesh. The state improved its annual ranking and increased its share of India’s FDI during 2025. At the same time, its cumulative share since October 2019 remained at 0.51%, indicating that translating high-profile investment announcements into sustained FDI inflows will continue to be an important indicator to watch in the coming years.
