Amaravati: Andhra Pradesh’s New Capital Set for Rapid Growth and Development

GG News Bureau
Amaravati, 18th June. N Chandrababu Naidu, the Chief Minister of Andhra Pradesh, announced Amaravati as the new capital on June 11, ahead of his oath-taking ceremony. This declaration is set to spur significant growth across various sectors within the city. Insights from experts and industry leaders highlight the promising future of Amaravati, particularly in the Information Technology (IT) and tourism sectors.

Expert Insights on Development of Amaravati

Adil Zaidi from EY India emphasized the city’s strategic advantages. “Nestled on the banks of the Krishna River, Amaravati City holds immense economic promise for Andhra Pradesh. As a greenfield capital, it will be at the forefront of modern urban planning and sustainability, with smart city features that will attract businesses valuing innovation and sustainability.”

Zaidi highlighted the IT sector’s potential, citing the state government’s commitment to developing robust digital infrastructure. “Development of IT parks and spaces for startups can lead to a surge in employment opportunities and create a vibrant tech ecosystem,” he added.

Zaidi also pointed out the educational sector’s growth prospects, stating, “Plans for world-class educational institutions and research centers can position Amaravati as a knowledge hub, benefiting industries like technology, healthcare, and engineering by providing a skilled workforce.”

Tejinder Gupta from Grant Thornton Bharat discussed Amaravati’s master plan, which includes nine theme cities tailored to specific industries. Gupta also noted the city’s agricultural potential, given its fertile land and favorable climate. “By investing in organic farming and precision agriculture, Amaravati can capitalize on the growing food processing industry,” Gupta opined.

Regarding tourism, Gupta noted a significant potential with an estimated annual growth rate of 10% in Andhra Pradesh. He emphasized the importance of investing in hospitality infrastructure to boost the local economy and job creation.

Premchand Chandrasekharan from Avalon Consulting highlighted the immediate priorities post-announcement, including developing facilities to support the migration of government employees and their families. This will drive growth in real estate, retail, hospitality, education, and healthcare sectors.

The Role of Water Bodies in Growth of Amaravati

As Bengaluru faces an acute water crisis, Amaravati’s abundant water resources are a key advantage. Anil Kumar from Rodic Consultants remarked, “Renewable energy is a cornerstone of Amaravati’s development strategy, and its planned transportation network will facilitate seamless mobility, boosting economic activities in logistics and related sectors.”

G Hari Babu, President of NAREDCO, discussed Amaravati’s sustainable water resources, including multiple dams and river projects ensuring a steady supply for the next 100 years.

Sustainable and Real Estate Development

Charith Konda from the Institute for Energy Economics and Financial Analysis emphasized Amaravati’s focus on sustainability, with plans to source 35% of its electricity from renewable energy and cover 30% of the area with water bodies and vegetation.

Shrinivas Rao from Vestian highlighted the city’s real estate potential, driven by significant infrastructure development. “Amaravati will witness a boom in real estate activities, particularly in commercial buildings for government offices,” he said.

Vimal Nadar from Colliers India and Ravi Teja Gupta from Guptaji Invests echoed similar sentiments, expecting substantial investments in real estate, driven by both local and international investors.

Abhishek Bhadra from Magicbricks and Siddhartha Rastogi from Ambit Investment Advisors Pvt Ltd stressed the importance of developing digital infrastructure and public transportation to support the city’s growth.

L Srinath Reddy from Raminfo Ltd envisioned Amaravati transforming into themed cities like ‘Health City’ and ‘Sports City,’ making it a ‘Futuristic City.’

Amaravati’s designation as the capital of Andhra Pradesh marks the beginning of an era of strategic development and growth, setting the stage for a sustainable and prosperous future for the region.