Mumbai | In a significant step toward strengthening international economic cooperation, the Andhra Pradesh Economic Development Board (AP EDB) has signed a Memorandum of Understanding (MoU) with the UAE Food Cluster to boost investments, food processing, exports, and trade in the state’s rapidly growing agricultural sector.
The agreement was signed in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu and UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri, fulfilling a key commitment made during the World Economic Forum (WEF) 2026 in Davos, Switzerland.
Strategic Partnership to Strengthen Food Processing Industry
The newly signed MoU is designed to attract UAE-based investments into Andhra Pradesh while expanding exports of the state’s high-quality horticultural products to international markets.
The collaboration will focus on establishing modern food processing facilities for crops including:
- Mangoes
- Bananas
- Cocoa
- Other horticultural produce
The partnership also aims to increase the production of value-added food products, strengthen international trade, and improve export competitiveness.
₹100 Crore Investment by Flour Masters International
As the first major investment under the agreement, Dubai-based Flour Masters International has announced an investment of ₹100 crore to establish a state-of-the-art food processing plant at Gangadhara Nellore in Chittoor district.
The facility will manufacture world-class processed food products primarily for international export markets.
The company currently exports food products to nearly 25 countries and plans to transform its Andhra Pradesh unit into a major global export hub.
UAE Delegation Discusses Food Cluster Development
A high-level UAE delegation also met with Chief Minister N. Chandrababu Naidu to discuss the establishment of a dedicated Food Cluster in Andhra Pradesh.
The proposed initiative will support:
- Food processing industries
- Cold storage infrastructure
- Modern logistics facilities
- Export-oriented manufacturing
- Agricultural value addition
Officials believe the project will significantly strengthen the state’s agricultural supply chain while creating new employment opportunities.
Chandrababu Naidu Highlights Andhra Pradesh’s Agricultural Strength
Chief Minister N. Chandrababu Naidu welcomed the rapid implementation of commitments made during the Davos Summit, noting that the UAE had acted within just six months.
He emphasized that the UAE Food Cluster would help position Andhra Pradesh as one of India’s leading destinations for:
- Food Processing Investments
- Agricultural Exports
- International Trade
- Global Supply Chains
Naidu highlighted that Andhra Pradesh is already among India’s top-performing states in:
- Horticulture
- Aquaculture
- Information Technology
Thanks to its favorable agro-climatic conditions, the state produces a diverse range of fruits and agricultural products throughout the year.
According to the Chief Minister, Agriculture and Horticulture together contribute nearly 30% of Andhra Pradesh’s Gross State Domestic Product (GSDP).
₹1 Lakh Crore Investment Planned for Rayalaseema
The Chief Minister announced that the government is transforming Rayalaseema into a major horticulture hub through combined public and private investments worth ₹1 lakh crore.
He also revealed that the Indian School of Agriculture (ISA) is being established in partnership with Reliance, aiming to develop advanced agricultural education, innovation, and research.
Over 200 Horticulture Clusters Driving Exports
Naidu informed the UAE delegation that Andhra Pradesh currently operates more than 200 horticulture clusters, exporting products such as:
- Shrimp and Aquaculture Products
- Red Chillies
- Palm Oil
- Cocoa
- Coffee
- Various Agricultural Commodities
These clusters have become major contributors to India’s agricultural exports.
‘Speed of Doing Business’ Attracting Investors
The Chief Minister reiterated Andhra Pradesh’s commitment to its “Speed of Doing Business” model, stating that investor-friendly policies have enabled the state to attract nearly 25% of India’s total investments.
He highlighted the state’s strong logistics network supported by:
- Major Ports
- Rail Connectivity
- National Highways
- Industrial Corridors
Naidu also announced that another international airport in Andhra Pradesh will begin operations on August 1, further strengthening trade and export connectivity.
Inviting global investors, he encouraged UAE businesses to seize investment opportunities in Andhra Pradesh at “Quantum Speed.”
UAE Praises Andhra Pradesh’s Investment Climate
Speaking during the event, UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri praised Andhra Pradesh’s abundant natural resources, particularly the Krishna and Godavari river systems, calling them key advantages for agricultural development.
He described Chief Minister Chandrababu Naidu as a visionary leader committed to transforming Andhra Pradesh into a globally competitive investment destination.
The Minister stated that the UAE sees tremendous opportunities in Andhra Pradesh’s:
- Agriculture
- Food Processing
- Aquaculture
- Seafood Exports
- Horticulture
Products such as shrimp, bananas, and other horticultural produce have strong potential in global markets.
Food Park Cluster and Global Export Network Planned
The UAE Government announced plans to establish a modern Food Park Cluster in Andhra Pradesh featuring:
- Advanced Food Processing Units
- Cold Chain Infrastructure
- Integrated Warehousing
- Export Logistics Facilities
The Minister also praised the Andhra Pradesh Government for granting industrial approvals within 21 days, significantly improving the state’s Ease of Doing Business.
He added that the UAE aims to expand exports of:
- Dairy Products
- Poultry
- Seafood
- Pulses
- Processed Food Products
from Amaravati to major international markets, including New York.
Additionally, enhanced shipping connectivity through Krishnapatnam Port and Kakinada Port is expected to strengthen bilateral trade and deepen economic cooperation between India and the United Arab Emirates.
A New Chapter in India–UAE Economic Relations
The MoU between Andhra Pradesh and the UAE Food Cluster represents a major milestone in the expanding India–UAE economic partnership. By combining Andhra Pradesh’s agricultural strength with the UAE’s investment capabilities and global trade network, the collaboration is expected to generate new investments, employment opportunities, higher exports, and sustained growth in the state’s food processing industry, further positioning Andhra Pradesh as a leading global agri-business and export hub.
