5 Fast-Growing Sectors in South Indian Cities That Are a Goldmine for Investors

The Indian Government is making a significant investment in infrastructure development to realize the PM GatiShakti vision. South India will be the most visible area of development, and the whole region will be a hot spot for infrastructure and investment, with Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Kerala at the forefront of progressive projects in ports, airports, renewable energy, and more.

1. Port Infrastructure

Opportunities in the Indian maritime sector are projected to amount to $1 Trillion by 2047. Interestingly, Indian Ports Turn Around Time is less than that of the USA (1.5 days), Australia (1.7 days), and Singapore (1.0 days).

Tamil Nadu Tamil Nadu is witnessing its largest-ever port modernization program, with over ₹1.2 lakh crore in MoUs signed during India Maritime Week 2025. The expansion spans three major ports:

- Chennai Port Authority : It has secured the largest allocation of ₹42,000 crore, critical for India’s automobile export chain. Hyundai Motor India, which has exported over 3.7 million vehicles through Chennai Port to 150+ destinations since 1999, will particularly benefit from this expansion. - Kamarajar Port Limited (Ennore) : This port is upgrading its draft from 14 metres to 18 metres to accommodate Panamax and cape-size vessels, strengthening India’s domestic transhipment capabilities. Toyota Kirloskar Motor has extended its export partnership with Kamarajar Port until March 2035. - V.O Chidambaranar Port Authority (Tuticorin) : Tuticorin is setting its sights on becoming a hub for ship repair and wind energy. VOC Port has attracted unprecedented green energy investments exceeding ₹1.27 lakh crore through 28 MoUs. Major commitments include: - Sembcorp Group’s ₹25,400 crore for a green ammonia storage facility - ACME’s ₹12,000 crore for a green ammonia production plant (1,200 MTPD) - CGS Energy’s ₹5,000 crore for a green ammonia project

Additionally, Tamil Nadu secured ₹30,000 crore for two world-class shipyards in Tuticorin, with Cochin Shipyards Limited and Mazagon Dock Shipbuilders Limited each investing ₹15,000 crore and creating 55,000 jobs combined.

Kerala’s Maritime Renaissance Kerala has positioned itself as a critical maritime hub with two major port developments. The Vizhinjam International Seaport, inaugurated by Prime Minister Modi on May 2, 2025, represents India’s first semi-automated deepwater international port. The project cost ₹8,686 crore for Phase 1, with the Kerala government contributing over 60% (₹5,370 crore), and Phase 2, expected by 2028, will require ₹10,000 – ₹15,000 crore fully funded by Adani Ports. Since commercial operations began, Vizhinjam has handled over 500 ships and 10.6 lakh TEUs, establishing Kerala on the global transshipment map.

Cochin Port Authority The Cochin Port Authority secured almost ₹10,000 crore in investment commitments through 10 MoUs at India Maritime Week 2025. Key investors include: - Cochin Shipyard Ltd and HD Korea’s ₹3,800 crore for a Block Fabrication Facility - IGTPL (DP World’s) ₹1,500 crore for cargo handling enhancement at Vallarpadam - Cochin Shipyard Ltd ₹1,500 crore for an International Ship Repair Facility - Dredging Corporation of India committed ₹800 crore for channel and basin maintenance

Andhra Pradesh Adani Group acquired Krishnapatnam Port in 2021 for ₹13,675 crore, India’s second-largest private port. The port now handles massive coal volumes and has broken monthly throughput records multiple times. Gangavaram Port is expected to commence container operations soon, complementing Krishnapatnam’s bulk cargo focus.

2. Airport Infrastructure

Tamil Nadu, Karnataka, and Andhra Pradesh are leading the way in airport infrastructure development, with both new greenfield projects and the upgrading of existing facilities. Major airline projects include:

- Bhogapuram International Airport (Andhra Pradesh) : A greenfield project near Visakhapatnam, which is set to be a major airport with up-to-date technology and big storage expansion plans. - Chennai’s Second International Airport (Parandur, Tamil Nadu) : This project is one of the largest in India, with a planned investment of ₹20,000 crore. Targeted for 2028, it will be well-connected to the metro and highway, making it a part of a large transport ecosystem. - Trivandrum International Airport (Kerala) : Adani’s ₹5,500 crore development project will expand the airport’s capacity from 4.5 million to 12 million passengers, positioning the city as a regional aviation hub. This, along with the new IT parks adjacent to Kannur and Kollam airports, will drive technology and commercial growth.

3. Special Economic Zones (SEZs)

SEZs are key locations for export-oriented industries and IT services. Tamil Nadu leads with 51 operational SEZs (18% of India’s total), followed by Telangana (38), Karnataka (37), Andhra Pradesh (25), and Kerala (20). The Semiconductor sector in Hubballi Durable Goods Cluster in Dharwad, Karnataka, recently received an investment of ₹1 billion.

Tamil Nadu, Karnataka, Andhra Pradesh, and Kerala’s SEZ strengths align with their industrial capabilities, such as IT in Karnataka and Telangana, manufacturing in Tamil Nadu, and Pharmaceuticals in Andhra Pradesh. The Southern dominance is attributed to excellent infrastructure, a skilled workforce, and strategic port access.

4. Renewable Energy and Power

Tamil Nadu and Karnataka are the main players in renewable energy capacity, while Andhra Pradesh is planning significant future growth, making the southern part of the country a must-watch for eco-friendly and sustainable investments.

- Andhra Pradesh : ReNew Energy announced a $9.33 billion (₹82,000 crore) investment in Andhra Pradesh, one of the largest private renewable energy investments in the region. The portfolio includes a 6 GW solar ingot and wafer manufacturing plant, 2 GW pumped Hydro storage, 300,000 tonnes/year green ammonia facility, and 5 GW hybrid renewable projects combining wind, solar, and battery storage. Andhra Pradesh has ambitious targets of 78.5 GW solar, 35 GW wind, and 25 GWh battery storage capacity. - Karnataka : Karnataka secured the top position in India for wind power capacity addition. The state added 1,331.48 MW, bringing total installed wind capacity to 7,351 MW. At the 2025 global Investors Meet, Karnataka secured ₹4 lakh crore investment. Karnataka plans to implement 17 GW of wind power projects, with over 5 GW under the Renewable Energy Cluster programme, supported by 20+ new substations and 400 KV corridors. - Tamil Nadu : Currently, Tamil Nadu is leading in renewable energy production with 23 GW and plans to add 10,000 MW of solar and 2,000 MW of wind capacity over five years. With over 20 GW of current capacity (including 10 GW+ wind), Tamil Nadu added 2,786 MW in FY 2024-25 alone (2,014 MW solar, 1,136 MW wind potential) and is advancing battery storage capacity with a 500 MW, 1,000 MWh BESS project by Dec 2026.

5. Information Technology (IT) and Technology-Enabled Services

- GCC Dominance : In Q1 2025, Bengaluru, Hyderabad, and Chennai together accounted for 64% of GCC (Global Capability Centre) office leasing in India. Bengaluru leads in total GCC count, followed by Hyderabad and Chennai. - Data-Centre Growth : South India’s data-centre capacity (in Bengaluru, Chennai & Hyderabad) is set to grow by 65% by 2030, supported by strong infrastructure investment. - Hyderabad Exports : STPI-Hyderabad reported ₹1.42 lakh crore in software exports in FY 2024-25, highlighting its strong IT/ITES base. - Visakhapatnam : Google announced a $15B AI hub investment with gigawatt-scale data centres in Visakhapatnam. A 300 MW data-centre campus is being planned, further boosting the region’s IT capabilities.

These sectors are not only driving economic growth but also creating numerous opportunities for investors. South Indian cities are rapidly becoming the go-to destinations for those looking to capitalize on the region’s potential.