There is an increased spotlight on Vizag after the coastal town has become the executive capital of Andhra Pradesh. The city already is a popular melting pot of trade, commerce, culture, and heavy industries in India. It is home to a large concentration of PSUs, shipyards, shipping corporations, manufacturing industries, steel plants, naval bases, etc.
The city which is also the second largest city on the Eastern coast of India, after Chennai, is registering phenomenal growth and aggressively bridging the gap with other major metros in South India such as Bangalore, Hyderabad, and Chennai. As the city has been recently promoted as the capital of AP, there will be an increased spotlight on Vizag.
After becoming the capital, more govt run offices and private enterprises will thrive in Vizag. This will give a major makeover to the city, which already has a cosmopolitan appeal with a large portion of the migrant workforce, coming from various parts of India.
Presently there are close to 250 IT companies in Vizag and is expected to rise sharply in the times to come. Likewise, numerous other industries in Vizag such as SMEs, metal & alloys, education, pharma, healthcare, food processing, paper, and agribusiness are expected to grow fast in the near future.
The current size of Vizag’s economy is USD 15.9 billion, making it one of the most prosperous cities in India. The per capita income is USD 8,100. The service sector in Vizag is the biggest contributor to the economy, comprising 55% of the market share. In the service industry tourism and trade are major growth enablers. This is followed by the industrial sector pegged at 35%.
Vizag industrial growth is also linked to its status as one of the biggest Exim ports in the country. The main Vizag port has an annual capacity of 125 million tons. 15 kms from the Vizag port, a new port namely Gangavaram is operational and is also expanding its footprint in regional and international trade with a present capacity of 62 million tons.
In Vizag, infrastructure development is taking place at a staggering pace. A new international airport is built, which is expected to be operational by 2024. The airport will be spread around 5300 acres and will have an overall capacity of 6.3 million. The existing railway station will also be given a facelift with a host of modern amenities. The government will spend INR 400 crores (USD 49 million) to redevelop the railway station. An extensive 80 Kms metro network has been proposed for Vizag, for which the detailed project report is prepared.
Work has begun on the 6-lane expressway connecting Vizag and Raipur. The INR 3750 crores, access-controlled greenfield expressway will reduce the time to commute to 7 hours from 14 hours. This will also promote increased investment and link Vizag with the wider Vizag-Raipur economic corridor and the eastern economic corridor (connecting Kolkata with Kanyakumari.). In addition to the main Vizag city, the expressway will be instrumental in linking 3000 villages in the district with the economic corridor thereby unlocking new opportunities in rural areas.
In the past, Vizag’s growth has also been rooted in its large-scale tourism market. Vizag is known for its beautiful coastlines, turquoise yellow sea water, scenic hilly trails, etc. Before the pandemic, the annual tourism inflow in Vizag was to the tune of 23-26 million, which also includes a sizable volume of international tourists. The region is also home to a host of monuments, archaeological sites, temples, ancient caves, etc. thereby making the place a year-long tourist destination.
As the tourism industry in Vizag (and nearby Araku) is recovering once more, there is renewed optimism in the economy. The state government in tandem with the central government is systematically investing in developing beach corridors, floating restaurants, shopping complexes, amusement parks, snow park, etc. to further vitalize the tourism industry, which is a cornerstone to economic prosperity in the city.
There are close to 505 hotels in Vizag, which includes 4 and 5-star hotels and resorts as well as budget and mid-priced accommodations. Vizag’s booming tourism industry will further steer growth in hospitality as well as allied sectors such as real estate, retail, wellness, F&B, healthcare, etc. The city has presently close to 4250 restaurants. This includes new-age multi cuisines restaurants, cafes, bakeries, fine dining, fast food takeaways, etc. Its status as the state capital, higher per capita income, and resurgent tourism industry will further fuel demand for F& B business.
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