Union Budget 2026: What Did AP and Telangana Get? Full List of Key Allocations

In the Union Budget 2026, the Centre announced several key allocations aimed at boosting infrastructure, tourism, and industrial growth in Telugu-speaking states. Projects such as high-speed rail corridors, eco-tourism initiatives, and rare earth mineral clusters have been highlighted for the financial year 2026–27, bringing partial relief to Andhra Pradesh and Telangana.

High-Speed Rail Corridors Announced

One of the major highlights of the Union Budget 2026 is the proposal for new high-speed rail corridors, directly benefiting Hyderabad and improving regional connectivity.

Proposed High-Speed Rail Routes:

• Pune – Hyderabad
• Hyderabad – Bengaluru
• Hyderabad – Chennai

These corridors are expected to reduce travel time, boost economic activity, and provide indirect connectivity benefits to South Andhra regions.

Eco-Tourism Push in Andhra Pradesh

The budget places special emphasis on eco-friendly tourism, particularly in Araku Valley.

Key Eco-Tourism Initiatives:

• Development of eco-trails and mountain trekking routes
• Promotion of Araku as a new trekking and hiking destination
• Focus on sustainable tourism and local employment

Bird-Watching Tourism at Pulicat Lake

To promote nature tourism, the Centre announced bird-watching trails at Pulicat Lake.

What’s Planned:

• Bird-watching tourism clusters
• Employment opportunities through local guides and homestays
• Joint development across Andhra Pradesh and Tamil Nadu border areas

Buddhist and Heritage Tourism Development

The Union Budget 2026 also includes a plan to develop Buddhist circuits and 15 archaeological sites across the country.

Benefits for Andhra Pradesh:

• Pulicat and Araku to gain from heritage and nature tourism
• Increased tourist inflow and cultural preservation

East Coast Industrial Corridor (Purvodaya)

Under the Purvodaya initiative, an Integrated East Coast Industrial Corridor has been announced.

Key Advantages:

• Andhra coastal region to benefit the most
• Boost to ports, industries, and logistics
• Durgapur identified as a major node

Rare Earth Corridors Announced

A major industrial push has been announced through Rare Earth Corridors.

States Included:

• Odisha
• Kerala
• Andhra Pradesh
• Tamil Nadu

These corridors will focus on mining, processing, research, and manufacturing of rare earth minerals, strengthening India’s strategic resources sector.

No Funds for Amaravati, Telangana Projects Miss Out

Despite expectations, no funds were allocated for Amaravati, the proposed capital of Andhra Pradesh. This came as a shock, especially after Amaravati was mentioned in the recent Economic Survey presented in Parliament.

Similarly, Telangana faced disappointment:

• No allocation for Hyderabad Metro expansion
• Several pending projects received no budgetary support
• The state government, led by Revanth Reddy, has been demanding funds for infrastructure expansion for a long time

Mixed Reactions to Union Budget 2026

While the Union Budget 2026 brings high-speed rail corridors, tourism development, and rare earth projects to Telugu states, the absence of funds for Amaravati and Hyderabad Metro expansion has left many disappointed. As discussions continue, people in Andhra Pradesh and Telangana are closely watching how these announcements translate into real development on the ground.

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