Synopsis: Visakhapatnam Economic Region (VER) is a $52 billion economy comprising nine districts of Andhra Pradesh aiming to become a $125-135 billion economy by FY32. This article explains 7 growth drivers that has the potential to create 2-2.4 million new jobs by FY32.
Visakhapatnam is going to be an important economic growth centre in India, the government of Andhra Pradesh and NITI Aayog have made a plan for Visakhapatnam which will help Visakhapatnam grow fast, make its infrastructure better, create a lot of jobs for people and get a lot of money from global companies in the next ten years.
The Visakhapatnam Economic Region (VER)
The Visakhapatnam Economic Region is an idea by NITI Aayog and the Government of Andhra Pradesh for a place where businesses can grow and people can invest. The VER will cover nine coastal districts namely Visakhapatnam, Vizianagaram, Srikakulam, Anakapalli, Kakinada, East Godavari Dr. B.R. Ambedkar Konaseema, Alluri Sitharama Raju and Parvathipuram Manyam. It will be big area wise covering 38,000 square kilometers and will be home to around 16.5 million people.
Currently valued at 52 billion dollars, the master plan wants to make VER a bigger economy worth 125 to 135 billion dollars by the year 2032.This will happen through investments in areas like manufacturing, information technology, artificial intelligence, tourism, healthcare, building infrastructure and developing cities.The plan also aims to create 2 to 2.4 million jobs by 2032. It hopes to attract investments of 100 to 115 billion dollars over the next few years.
VER by the Numbers
Source: NITI Aayog–Government of Andhra Pradesh, Developing Visakhapatnam Region as a Global Economic Hub.
Seven Growth Sectors Driving VER
1. Manufacturing: The main goal is to make VER a strong place for manufacturing, this will be done by growing industries like steel, petrochemicals, pharmaceuticals, defence manufacturing, shipbuilding and clean technology that is expected to lead to job creation of 600,000-700,000.
2. IT, AI and Data Centres: VER is being made into a technology hub, the plan is to get IT companies, Global Capability Centres, startups and big AI data centres to come here. They also want to make a lot of space for data centres, a place where internet cables land and Google’s first AI hub in India with a job creation target of 400,000-425,000. It aims to become one of the top 3 data centre and AI hubs in India hosting at least 2-2.5 GW of data centre capacity and a cable landing station by FY32.
3. Agriculture: The region is good at growing things so they want to produce more things like eggs, fish, coffee, cashew, coconut, banana and other fruits and vegetables. They also want to process food and send it to other countries to help farmers earn more money leading to job creation of 100,000 -125,000.
4. Tourism: The plan is to make VER into a renowned tourism hub, aspiring to increase foreign and high-spending tourists from 30,000-40,000 currently to 1.5 million by FY32.
5. Healthcare: They want to make a healthcare city in VER that will have many hospitals, medical colleges and places for people to get well. The goal is to make VER a place where people from India and nearby countries can come for medical care.
6. Urban Development: To help the region grow they will make new areas with homes, shops and offices. They will also build new homes, make old areas nice again and build near train and metro stations. This will lead to job creation (mainly construction) of 200,000-300,000.
7. Infrastructure: Improving infrastructure by creating seamless road, rail and metro connectivity through investments in CBG plants, waste-to-energy plant, enhanced water and sewage treatment infrastructure and 4,000 new electric/CNG buses generating 300,000-350,000 jobs.
Major Projects Planned Under VER
The Economic Master Plan is going to start 49 projects in many areas like manufacturing, computer technology, tourism, healthcare, city development and infrastructure.
Future Outlook on Real Estate
The Visakhapatnam Economic Region has some proposed projects that could really boost demand for homes and office spaces in the coming years. Lots of money is being invested in multiple sectors which will likely attract businesses, workers who are skilled more people who want to live in the area which means there will be a need for housing, offices, shops, hotels and logistics parks.
Places like Anandapuram, Bhogapuram, Anakapalle, Nakkapalli, Kakinada and Visakhapatnam city will probably benefit a lot. The real benefits for real estate will depend on whether these projects are completed on time and get future government approvals.
