Andhra Pradesh witnessed transformative momentum in 2025 with capital revival, mega investments, and renewed confidence in governance statewide.
Amaravati
The year 2025 emerged as a defining phase for Andhra Pradesh, marked by the resumption of long-pending capital development works in Amaravati and a series of major investment announcements that reshaped the State’s economic narrative. Among the most significant developments were the re-launch of Amaravati capital works, a landmark investment decision by Google to establish a $15 billion AI data centre in Visakhapatnam, and multiple agreements spanning diverse sectors that underscored renewed investor confidence.
The revival of Amaravati stood out as the most symbolic and politically significant achievement of the year. Fulfilling a key promise made during the 2024 elections, the Telugu Desam Party (TDP)-led coalition government, with support from the BJP-led government at the Centre, restarted work on the ambitious capital city project envisioned by Chief Minister N. Chandrababu Naidu. On May 2, 2025, Prime Minister Narendra Modi formally re-launched the Amaravati development works, nearly a decade after laying the foundation stone for the new capital of Andhra Pradesh.
The State government resumed projects worth ₹56,000 crore, including the construction of the High Court, Legislative Assembly, State Secretariat, and four major towers to house Heads of Departments. Expressing confidence in the pace of execution, Chief Minister Naidu stated that the core capital works would be completed by March 2028.
Adding further momentum, the government launched the second phase of land pooling in Amaravati, proposing the acquisition of 16,666 acres across seven mandals. According to the Chief Minister, the existing 29-village footprint was insufficient to develop a metropolitan capital on the scale of Hyderabad, necessitating expansion. A key administrative milestone was achieved in October with the inauguration of the Andhra Pradesh Capital Region Development Authority (APCRDA) office. The seven-storey, state-of-the-art building, constructed in the upcoming administrative core of Amaravati, signaled visible progress on the ground. Earlier, in November, Chief Minister Naidu, along with Union Finance Minister Nirmala Sitharaman, laid the foundation stone for regional headquarters of 15 public sector banks and insurance companies in Amaravati.
