Budget accelerates Visakhapatnam’s emergence as Andhra Pradesh’s industrial hub: industry honchos

Union Budget 2026 enhances Visakhapatnam's role as a key port-led hub for industry, pharmaceuticals, and technology, boosting investment and growth.

The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, has strengthened Visakhapatnam’s prospects as a port-led hub for industry, pharmaceuticals, logistics, emerging technologies and agriculture, according to industrialists who attended a CII meeting after the live screening of the Budget here on Sunday.

Initiatives such as Biopharma Shakti, tax holidays for cloud services, container manufacturing incentives, aerospace duty exemptions and focused support for high-value crops and fisheries are expected to attract investments, boost exports, generate employment and enhance regional competitiveness, positioning Visakhapatnam as a leading industrial, digital and life sciences hub on India’s east coast, said D. V. S. Narayana Raju, Chairman, CII Visakhapatnam.

G. Krishna Mohan, Vice Chairman, CII Visakhapatnam, said the proposed tax holiday for global cloud service providers until 2047 is a transformative step that positions India as a preferred destination for hyperscale data centres. He noted that Visakhapatnam, with its strong port connectivity, reliable power infrastructure, availability of land and a growing digital ecosystem, is well placed to attract large-scale data centre investments. The policy, he said, will accelerate investments in cloud computing, artificial intelligence and digital infrastructure in the region, create high-value jobs and reinforce Visakhapatnam’s emergence as a strategic digital and technology hub on the east coast.

K. V. V. Raju, Chief Executive Officer, Ajinomoto Bio-Pharma Services I Pvt. Ltd., said the ₹10,000-crore Biopharma Shakti programme would give a major boost to Visakhapatnam, which already hosts one of the country’s largest pharmaceutical and bulk drug clusters. Support for biologics and biosimilars manufacturing, expansion of clinical trial infrastructure and a stronger regulatory framework will attract high-value research and development and global pharmaceutical investments to the region, he said. The proposed medical tourism hubs and expansion of the allied healthcare workforce would further position Visakhapatnam as a leading life sciences and healthcare hub for eastern India, with strong international connectivity through Visakhapatnam Port and other upcoming port-based infrastructure in Andhra Pradesh.

G. Sambasiva Rao, Managing Director, Sravan Shipping Services Pvt. Ltd., said the sharp increase in public capital expenditure, along with new freight corridors, promotion of coastal cargo and development of national waterways, would significantly strengthen Visakhapatnam’s role as a key maritime and logistics gateway. He added that the proposed ₹10,000-crore container manufacturing scheme would create strong opportunities for container fabrication, repair and ship-linked industries in the city, generating employment and reinforcing India’s port-led industrial and maritime supply chains.

D. Tirupathi Raju, Executive Chairman, Vijaynagar Biotech Pvt. Ltd., said the Budget’s emphasis on high-value crops, value addition and technology-driven agriculture would strongly benefit Andhra Pradesh’s agrarian and coastal economy. Focused support for coconut, cashew and cocoa, which are key crops in the State, along with fisheries and animal husbandry value chains, would enhance farmer incomes and create new opportunities for agri-processing and biotech innovation, he said. The launch of the AI-enabled Bharat Vistar platform would help farmers adopt scientific practices, improve productivity and build a more resilient, future-ready agricultural ecosystem.