Rayalaseema: the new industrial center of India

Cchronic drought and subsequent famines have been an integral part of Rayalaseema, with the area having some of the driest places in India.

However, the economic landscape here has undergone a noticeable transformation over the last decade and a half, as some large manufacturing industries have started moving here with huge investments. Apart from agriculture and horticulture which flourished in isolated pockets, Rayalaseema has never had any major industrial activity to boast of, but this is changing rapidly and in no small measure.

Numerous cotton gins and presses, textile mills and mineral based units were the first industries to come to the region in the mid-20th century. Several large industries were subsequently established, including the Rayalaseema State Thermal Power Plant, the Dalmia Bharat and Zuari cement plants in the Kadapa-Kurnool belt, and a number of renewable energy projects such as ultra-mega solar parks in Kadapa and Kurnool districts.

After a large gap, the ground was then set for another tranche of massive investments, the most significant of which is an integrated steel plant being built by the JSW group in Kadapa district; a chain of defense sector projects, namely the DRDO Advanced Medium Combat Aircraft Integration and Flight Test Center at Puttaparthi, the Bharat Forge Defense Energy Facility at Madakasira and the HFCL High Precision Munitions Unit at Sri Sathya Sai District; and the Royal Enfield manufacturing facility near Tirupati. Then there is the Space City ready to take shape near the country’s only missile launch base at Sriharikota.

These are just a few of the projects that are turning parts of the Rayalaseema region into a manufacturing hub.

Gradual boom

Due to its location in the rain shadow region of the Deccan Plateau and the consequent inability to fully capture the heavy rains that the southwest and northeast monsoons normally bring, the Rayalaseema region has been starved for centuries.

However, over the years, the same vast wastelands that entrepreneurs wouldn’t even look at have seen hives of industrial activity as the Telugu Desam Party (TDP) government of 2014-19 and the current TDP-led ruling coalition offered attractive incentives and created the necessary infrastructure to bring about an industrial revolution of sorts in this rich yet arid region.

The establishment of KIA Motors’ only car manufacturing plant in India at Anantapur (a site now located in Sri Sathya Sai district) in 2019 has triggered a steady flow of major investment into the region. Royal Enfield’s entry into Tirupati from Tamil Nadu, the only state where Eicher Motors currently manufactures the iconic motorcycles, complements the existing automotive ecosystem in Anantapur and positions the region as a growing hub for vehicle manufacturing.

What has clearly secured all these projects is the government’s focus on ‘ease of doing business’ and its subsequent evolution towards ‘speed of doing business’ and the relentless efforts of the government through the State Investment Promotion Board to promote Rayalaseema as an investment destination.

As the government tries to roll out the red carpet for investors across the spectrum of industrial production, it is now focusing on consolidating the region’s leading position in the production of horticultural crops. Accordingly, the food processing industry is being aggressively promoted.

Looking back, it was the JSW group’s Rayalaseema Steel Plant, whose foundation was laid on July 3, that gave impetus to the industrialization of the region; its investment in Phase-I is ₹4,500 crore (1 MTPA capacity) out of the total proposed investment of ₹16,350 crore.

Since then, several new major industries have begun to take tangible shape in Sri City, adding to the “major manufacturing sector” in Rayalaseema which has gained momentum.

The current government has basically done everything to attract investors to this region, which has been deceived for decades, and the positive result of its efforts can be seen in the fact that these projects, which were once only on paper, have started to turn into reality.

Published – 28 Jul 2026 01:09 IST