Andhra Pradesh's capital city, Amaravati, is poised to receive a substantial economic boost with Malaysian firms expressing interest in investing between ₹6,000 crore and ₹10,000 crore (approximately $720 million to $1.2 billion USD) over the next five years. This potential investment is aimed at bolstering key sectors within the capital region, signaling a positive turn for Amaravati's development.

A delegation of Malaysian investors recently toured Amaravati to assess the ongoing development projects. The delegation included Selangor State Minister Papparayudu Veraman, Member of Parliament from Klang Ganapathi Rao, and representatives from the Malaysia-Andhra Business Chamber, among others. They met with Andhra Pradesh's Minister for Municipal Administration and Urban Development, P. Narayana, to discuss potential collaborations and investment opportunities.

The Malaysian delegation has indicated a strong interest in investing in several key sectors:

• Education: The University of Cyberjaya (UoC) from Malaysia has proposed establishing a medical university in Amaravati.
• Tourism and Hospitality: The Berjaya Group has expressed interest in developing five-star hotels in the capital city.
• Trade and Commerce: Investments in trade and commerce are also under consideration, potentially boosting economic activity in the region.
• Real Estate: The focus includes technology transfer, infrastructure development and overall real estate projects.
• Telugu Culture and Traditions: The delegation is also exploring investments in projects that promote and preserve Telugu culture and traditions.

Minister Narayana briefed the delegation on the progress of Amaravati's construction, emphasizing Chief Minister Chandrababu Naidu's vision to develop it into one of the top five capital cities globally. He stated that tenders for projects worth ₹51,000 crore have been finalized and construction is underway. The government has set ambitious targets for infrastructure development, including the completion of 360 km of main roads within 18 months and 1,500 km of layout roads within two years. Additionally, 4,000 houses for government officials and public representatives are expected to be completed by March 2026.

Andhra Pradesh has been actively working to create a conducive environment for investment and economic growth. The state's economy relies heavily on agriculture, employing 62% of the population. However, the government is keen on diversifying its economy through infrastructure development and attracting foreign investments. The state is ranked first in the country for GSDP growth at constant prices for the year 2021-22, with a growth rate of 11.43%. The state GSDP is expected to grow at 17% for the year 2023-24.

The potential investment from Malaysian firms aligns with Andhra Pradesh's broader economic goals. The Andhra Pradesh Economic Development Board (APEDB) plays a crucial role in attracting investments and promoting economic growth. The state government has also launched initiatives like the Land Incentive for Technical Hubs (LIFT) Policy 2024–29 to encourage development in specific sectors.

The interest shown by Malaysian companies reflects growing confidence in Amaravati's potential as a future economic hub. With strategic investments and infrastructural development, Amaravati is on track to becoming a significant capital city.