The past two years of turmoil, unresolved Telangana tangle and even the 35 day long Sakala Janula Samme couldn't dampen the prospects of Andhra Pradesh state as a much sought after investment destination. This fact has been re-affirmed by  global property consultant Knight Frank, who has ranked the State among the top 5 manufacturing destinations in the country alongwith Gujarat, Maharashtra, Tamil Nadu and Karnataka.

The report 'India Manufacturing Destinations - Performances, Opportunities', aimed at guiding investors and industrialists keen on participating in the India manufacturing story over the next decade, estimates that the total output of these top 5 states will hit Rs 49.40 lakh crore by 2016 from Rs 19.35 lakh crore, translating to a 21% annual growth rate. According to the Knight Frank report, the output of the six major sectors - petroleum, food processing, cement, chemicals, metal and electrical machinery - in Andhra Pradesh would soar to around Rs 6 lakh crore over the next five years, a two-and-half fold jump from the existing Rs 2.31 lakh crore. Between the six sectors they would guzzle up around 23,475 acres over the next five years.

Terming the petroleum sector as the leading light of Andhra Pradesh, Knight Frank has said that the sector would help the state chart a trailblazing growth going forward thanks to a CAGR (compound annual growth rate) of 28%, catapulting the state’s petroleum output to Rs 2.07 lakh crore in financial year 2015-16 as against Rs 59,400 crore in 2010-11. The upcoming Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in the Vizag-Kakinada belt would be the biggest magnets for investment in AP. Knight Frank India's national head of research Samantak Das said: "Our research shows that the industrial landscape in Andhra Pradesh is poised to witness a transformation as the lead of the food processing industry will be taken over by the petroleum industry in 2016 because the 28% CAGR of petroleum will overtake the 17% CAGR of food processing."

Commenting on the T-angle, Knight Frank India's national director (research and advisory services) Gulam Zia, told that though the report had taken into account the shaky environment and uncertainty arising from the Telangana issue, the state has certain natural advantages that will keep it ahead of other states. "Despite the Telangana issue we are looking at this kind of growth coming from Andhra Pradesh because there are some natural advantages than cannot be taken away from the state like its long coastline, natural resources and geographical location," Zia explained.