Port-Led Growth Takes AP into Top Tier of NITI Aayog’s Export Rankings
Visakhapatnam: Andhra Pradesh is witnessing a major shift in the export landscape with pharmaceuticals and textiles emerging as key growth sectors, according to the Export Readiness Index (EPI) 2024 published by NITI Aayog.
This development is a welcome feature as AP has traditionally relied on agriculture and maritime exports.
The pharmaceutical sector has now become one of the most resilient pillars of Andhra Pradesh’s exports, and Visakhapatnam is emerging as the nerve center of this growth. The port city is home to one of India’s largest bulk pharmaceutical and formulation manufacturing units, thanks to its pharmaceutical Special Economic Zones (SEZs) and private industrial parks.
Vizag’s pharmaceutical clusters cater to both regulated and semi-regulated markets by exporting active pharmaceutical ingredients (APIs), intermediates and finished formulations to countries in Asia, Africa, Europe and Latin America.
Industry officials state that the city’s strategic port location reduces logistics costs and turnaround time, providing exporters with a competitive advantage in global markets.
The NITI Aayog EPI rating is an indication of AP’s strengthening business ecosystem, especially improved access to utilities, logistics and industrial parks to support the export potential of the pharmaceutical sector.
But the EPI report points to persistent challenges in pharmaceutical manufacturing, particularly skills gaps in specialized manufacturing processes and compliance-based roles.
Apart from pharmaceuticals, textiles have also emerged as a major growth driver in the state’s export portfolio, according to NITI Aayog. It is steadily expanding its presence in yarn, fabric, ready-made garments and home textiles with manufacturing clusters spread across Andhra Pradesh, Rayalaseema and coastal regions.
EPI 2024 highlights that textile is a sector with strong exports. Integrated textile parks and cluster-based development could help AP benefit from changing global sourcing patterns as international buyers look for production alternatives, officials say.
However, structural problems such as fragmented production, unequal infrastructure in the inner regions and limited access to global buyers continue in the textile industry.
EPI highlights the need for improved logistics links, industry-aligned skills programs and brand support to help textile units integrate more effectively into global supply chains.
EPI notes that Andhra Pradesh has aligned its industrial and export strategies with national targets, including the target of achieving $1 trillion in goods exports by 2030 under the Viksit Bharat 2047 vision.
Points:
Andhra Pradesh: Pharmaceuticals and Textile Exports:
– Total Exports (FY24): Rs 1.6 lakh crore
– Export CAGR (FY20–24): 6%
– GNH: Rs 14.4 lakh crore.
– Coastline: 974 km.
Visakhapatnam Supports Pharmaceutical Exports:
– Port-led logistics ecosystem
– Pharmaceutical SEZs and API clusters
– VCIC connection to global markets
– Integrated production base
AP Textiles—Emerging Export Opportunity:
– Strong cotton and hand woven base
– Transition to ready-made clothing and technical textiles
– High employment potential
– Global resource diversification opportunity
