Synopsis: South Indian cities are witnessing rapid expansion across various sectors that are reshaping the country’s economic landscape. Here’s a look at five industries that are emerging as attractive opportunities for investors.
The Indian Government is making a huge investment in infrastructure development to realize the PM GatiShakti vision. South India will be the most visible area of development, and the whole region will be a hot spot for infrastructure development and investment, with Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Kerala at the forefront of progressive projects in ports, airports, renewable energy,
1. Port Infrastructure
Opportunities in the Indian maritime sector to amount to $1 Tn by 2047, Interesting fact is Indian Ports Turn Around Time is less than that of the USA (1.5 days), Australia (1.7 days), Singapore and (1.0 days).
Tamil Nadu: Recently, Tamil Nadu witnessing its largest-ever port modernization program, with over ₹1.2 lakh crore in MoUs signed during India Maritime Week 2025. The expansion spans three major ports:
- Chennai Port Authority: It has secured the largest allocation of ₹42,000 crore, critical for India’s automobile export chain. Hyundai motor India, which has exported over 3.7 million vehicles through Chennai Port to 150+ destinations since 1999, will particularly benefit from this expansion.
- Kamarajar Port Limited (Ennore): This port is upgrading its draft from 14 metres to 18 metres to accommodate Panamax and cape-size vessels, strengthening India’s domestic transhipment capabilities. Toyota Kirloskar Motor has extended its export partnership with Kamarajar Port until March 2035.
- V.O Chidambaranar Port Authority(Tuticorin): Tuticorin is setting its sights on becoming a hub for ship repair and wind energy. VOC Port has attracted unprecedented green energy investments exceeding ₹1.27 lakh crore through 28 MoUs. Major commitments includes
| Investors | Investment | Features |
| Sembcorp Group’s | ₹25,400 crore | Green ammonia storage facility |
| ACME’s | ₹12,000 crore | Green ammonia production plant (1,200 MTPD) |
| CGS Energy’s | ₹5,000 crore | Green ammonia project |
Additionally, Tamil Nadu secured ₹30,000 crore for two world class shipyards in Tuticorin, Cochin Shipyards Limited and Mazagon Dock Shipbuilders Limited each investing ₹15,000 crore and creating 55,000 jobs combined.
Kerala’s Maritime Renaissance: Kerala has positioned itself as a critical maritime hub with two major port developments. The Vizhinjam International Seaport, inaugurated by Prime Minister Modi on May 2, 2025, represents India’s first semi-automated deepwater international. The project cost ₹8,686 crore for- Phase 1, with Kerala government contributing over 60%( ₹5,370 crore) and Phase 2, expected by 2028, will require ₹10,000 – ₹ 15,000 crore fully funded by Adani Ports. Since commercial operations began, Vizhinjam has handled over 500 ships and 10.6 lakh TEU’s establishing Kerala on the global transshipment map.
Cochin Port Authority: Secured almost ₹10,000 crore in investment commitments through 10 MoUs at India Maritime’s week 2025.
| Key Investors | Investment | Key features |
| Cochin Shipyard Ltd and HD Korea’s | ₹3,800 crore | Block Fabrication Facility |
| IGTPL (DP World’s) | ₹1,500 crore | Cargo handling enhancement at vallarpadam |
| Cochin Shipyard Ltd | ₹1,500 crore | International Ship Repair Facility |
| Dredging Corporation of India committed | ₹800 crore | Channel and basin maintenance |
Andhra Pradesh: Adani Group acquired Krishnapatnam Port in 2021 for ₹13,675 crore, India’s second largest private port. The port now handles massive coal volumes and has broken monthly throughput records multiple times. Gangavaram Port is expected to commence container operations soon, complementing Krishnapatnam’s bulk cargo focus.
2. Airport Infrastructure
The top performing states in India, Tamil nadu stands 1st position, Karnataka is in 4th position and Andhra Pradesh holds 5th position. In the southern part of India, there are lands of investment opportunities opening up by both new greenfield projects and the upgrading of existing infrastructure. The major airline projects are
- Bhogapuram International Airport (Andhra Pradesh) Greenfield project near Visakhapatnam which is going to be a very important airport with up-to-date technology and big storage expansion plans.
- Chennai’s Second International Airport (Parandur, Tamil Nadu), is going to be one of the largest in India, With a planned investment of ₹20,000 crore. This project target is 2028 and it will be very well-connected to the metro and highway making it a part of a very large transport ecosystem.
- Trivandrum International airport (Kerala) is increasing its presence in the air traffic sector with Adani’s ₹5,500 crore development project, to expand capacity from 4.5 million to 12 million passengers, positioning the city as a regional aviation hub which along with the new IT parks adjacent to Kannur and Kollam airports, will result in the technology and commercial growth.
Also read: 13 Fast-Growing Suburbs in India That Are Attracting NRIs for Second-Home Investments
3. Special Economic Zones (SEZs)
SEZs are the main locations for export-oriented industry and IT services. Tamil Nadu led at 51 operational SEZs (18% of India’s total) followed by Telangana (38), Karnataka (37), Andhra Pradesh (25) and Kerala (20). Recently, Semiconductor sector Hubballi Durable Goods Cluster in Dharwad, Karnataka got investment of ₹1 billion.
Tamil Nadu, Karnataka, Andhra Pradesh, and Kerala’s SEZ strengths align with their industrial capabilities, IT in Karnataka and Telangana, manufacturing in Tamil Nadu, and Pharmaceuticals in Andhra Pradesh. The Southern dominance is attributed to excellent infrastructure, skilled workforce and strategic port access.
4. Renewable Energy and Power
The two states, Tamil Nadu and Karnataka are the main players in renewable energy capacity while Andhra Pradesh is just planning to take off with massive future growth which is why the southern part of the country is a do not miss place for eco-friendly and sustainable investments.
Andhra Pradesh: ReNew Energy announced a $9.33 billion (₹82,000 crore) investment in Andhra Pradesh, one of the largest private renewable energy investments in the region. The portfolio includes a 6 GW solar ingot and wafer manufacturing plant, 2GW pumped Hydro storage, 300,000 tonnes/year green ammonia facility, and 5 GW hybrid renewable projects combining wind, solar and battery storage. Andhra Pradesh’s ambitious targets of 78.5 GW solar, 35 GW wind, and 25 GWh battery storage capacity. Andhra Pradesh has signed a renewable energy deal worth ₹3 lakh crore renewable energy agreement. These investments span pumped hydro storage, green hydrogen, wind, solar, biofuels, and energy storage.
Karnataka: Karnataka secured the top position in India for wind power capacity addition. The state added 1,331.48 MW, bringing total installed wind capacity to 7,351 M. At the 2025 global Investors Meet, Karnataka secured ₹4 lakh core investment. Karnataka plans to implement 17GW of wind power projects, with over 5 GW under the Renewable Energy Cluster programme, supported by 20+ new substations and 400 KV corridors.
Tamil Nadu: Currently, Tamil Nadu is leading in renewable energy production of 23 GW and its plans to add 10,000 MW of solar and 2000 MW of wind capacity over five years. With over 20 GW of current capacity (including 10 GW+ wind), Tamil Nadu added 2,786 MW in FY 24-25 alone (2,014 MW solar, 1,136 MW wind potential and is advancing battery storage capacity with 500 MW,1000 MWh BESS project by Dec 2026.
5. Information Technology (IT) and Technology-Enabled Services
- GCC Dominance: In Q1 2025, Bengaluru, Hyderabad, and Chennai together accounted for 64% of GCC (Global Capability Centre) office leasing in India. Bengaluru leads in total GCC count, followed by Hyderabad and Chennai.
- Data-Centre Growth: South India’s data-centre capacity (in Bengaluru, Chennai & Hyderabad) is set to grow by 65% by 2030, supported by strong infrastructure investment.
- Hyderabad Exports: STPI-Hyderabad reported ~₹1.42 lakh crore in software exports in FY 2024-25, highlighting its strong IT/ITES base.
- Visakhapatnam: Google announced a $15B AI hub investment with gigawatt-scale data centres in Visakhapatnam. A 300 MW data-centre campus is being planned in Vizag via a ₹15,000-crore deal between the Andhra Pradesh government and Tillman Global.
Conclusion
South India has massive investment opportunities to offer as among the major infrastructures the ports of Chennai, Tuticorin, and Vizhinjam have already expanded and are still in the process of being expanded as well. Already the air transport networks with Bhogapuram and Chennai being the second airport for the city are so well developed that they are the main points of real estate development through the provision of new flights and connecting cities. The various SEZs in Tamil Nadu, Karnataka, Andhra Pradesh, and Kerala are the reason for the rise of the new IT and manufacturing sectors, especially in semiconductors.
Written by Yatheendra N