Economy

Visakhapatnam Port.

Visakhapatnam Outer Harbour

Megadri River Channel that connects Outer Harour of Visakhapatnam Port with Inner Harbour

HPCL Petro-Chemical Complex

Satyam Development Center

Naval warship

Hindustan Shipyard Ltd Visakhapatnam

Fishermen in Visakhapatnam.

From being a tiny hamlet of local fishing communities during the early days of the Indian Independence Struggle and for a few decades later, the city exploded economically, in fact the rise has been so dramatic that the city was identified as one of the ten fastest growing cities in the world economically and demographically. Various factors contributed to the city's growth economically, including the natural harbor, its location between Madras and Calcutta, access to the NH5 (a major National Expressway) and the developed nework of railways which metamorphosed the village into a burgeoning industrial city.
The city has developed into a hub for many heavy industries. The Visakhapatnam Port, the largest in the country, was the ideal gateway contributing to the development of petroleum, steel and fertilizer industries. The Visakhapatnam Steel Plant and the Hindustan Petroleum Corporation Ltd. were the two multi-billion dollar investments which put Vizag on the country's industrial map. The city also has two N.T.P.C. power plants to satisfy the huge power needs of the industries. Visakhapatnam also houses the headquarters of the Dredging corporation of India.
Other heavy industries include Hindustan Zinc Limited, Synergies Castings Ltd., Rain Calcining Limited, Coromandel Fertilizers, Hindustan Ship Yard and Bharat Heavy Plate and Vessels Limited (B.H.P.V.). These industries provide employment to hundreds of thousands of people and pump billions of dollars into the state's economy.
The city also owes its economic growth to the availability of an educated English-speaking workforce. English is the first language in many places of higher education in the city. This availability of a highly educated workforce allowed the entry of many B.P.O. companies such as HSBC, thus providing the roots for the beginning IT/ITES industry in the city. The city registered over 100% growth in the I.T. sector over the last year, contributing millions of dollars to the economy. The city has around 50 small and medium software and call centre units, of which about 10 units started their operations during the year 2005-07. Software exports from the Visakhapatnam in 2007 were worth Rs. 245 crores - an increase of over 100% over the previous year. Various national and international I.T. and banking giants have set up or will be setting up offices in the city. These include Satyam, TCS, HSBC, Cognizant, Oracle Corporation, ABN AMRO, Patni, Hexaware Solutions, iSOFT, Sankhya Technologies, Infosys, iFlex, HCL, EDS, Datasoft Comnet Pvt. Ltd., Sutherland Global Services and Kanbay. The Andhra Pradesh government provided infrastructure and land for these companies to set up their development centers in the city outskirts.
Also, there are many Vizag-based SME's that have been providing IT and ITES services such as Xinthe Technologies, NuNet Technologies, Symbiosis Technologies, Sankhya Technologies, Patra, Acclaris, Samudra Software, etc. Many of these companies have formed an association called VITA (Visakhapatnam Information Technology Association) to help promote IT in Vizag as well as bridge the Industry-Institution gap.
To help companies in and around Visakhapatnam build their human capital, companies like IndiGenius have been providing Human Resource (HR) consulting services such as recruitment, temporary staffing and training.
The growing population and economy have resulted in the revamping of the real estate prices with prices at some prime locations in the city quadrupling over the past couple of years. Various real estate companies are setting up housing projects in the outskirts of the city which is being touted as the future I.T. destination of the country. Multiple Special Economic Zones (SEZ) have been sanctioned for the city. Reliance, Brandix and HPCL have purchased huge areas in the SEZ for setting up their industries. Bhabha Atomic Research Center (BARC) plans to set up it's second research facility in the country after Trombay in this region. The city was one of the five in the country selected to hold strategic crude reserves for the nation in times of national emergency.
The fishing industry is also on the rise with both foreign and domestic exports of tuna doubling over the past decade. A second port is being constructed at Gangavaram with an investment of 2 billion dollars which when completed will be the deepest port in the country with the ability to handle the larger international vessels.
Its traditional importance in shipbuilding is confirmed by the fact that India's first ship, the "Jala Usha", was launched in Visakhapatnam. Visakhapatnam is also one of India's main fishing ports, has a dedicated harbour for the fishing industry and handles a large percentage of India's seafood exports.
The Vizag Special Economic Zone plays a vital role in the industrial growth of the city. The Bhabha Atomic Research Centre has also expressed interest in setting up a nuclear power plant here.
The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has awarded the bid to construct a Knowledge City to Unitech Limited in an area of 1750 acres, with an investment of Rs. 35 thousand crore.