Andhra Pradesh to make 80% of India's ACs by 2028: Nara Lokesh
Synopsis
Andhra Pradesh is staking a claim to dominate India's air conditioning industry — with IT Minister Nara Lokesh targeting 80% of national AC output from Sri City by 2028. Backed by Carrier's ₹1,000 crore plant and ₹12,000 crore already invested in the HVAC ecosystem, the state's industrial bet is both ambitious and, on current trajectory, credible.
Key Takeaways
Nara Lokesh announced on 6 May that 80% of India's ACs will be manufactured in Andhra Pradesh by 2028 .
Carrier will invest ₹1,000 crore in a new unit at Sri City, Tirupati , creating around 3,000 jobs .
Sri City already hosts 9 AC manufacturers and 30+ supply chain players , with ₹12,000 crore invested in its HVAC ecosystem.
The township spans 8,500 acres , houses 250 companies from 31 countries , and has generated 70,000 jobs — 50% held by women.
The state also aims to become a data centre hub , leveraging its HVAC manufacturing strength for cooling infrastructure.
Andhra Pradesh's Information Technology and Electronics Minister Nara Lokesh on Wednesday, 6 May declared that 80 per cent of India's air conditioners will be manufactured in the state by 2028, as a new AC manufacturing unit broke ground at Sri City in Tirupati district. The announcement positions Andhra Pradesh as the country's dominant HVAC (heating, ventilation, and air conditioning) manufacturing hub, building on investments already in place across the Sri City industrial cluster.
Key Announcements at the Groundbreaking
Speaking at the ceremony, Lokesh outlined a phased manufacturing target: 60 per cent of India's air conditioning requirement is expected to be produced at Sri City by 2027, rising to 80 per cent by 2028, driven in part by the newly announced Carrier facility. The global HVAC major is set to invest ₹1,000 crore in the project, which is expected to generate employment for approximately 3,000 people, both directly and indirectly.
Lokesh described the state's growing identity in the sector:
Point of View
Even if Sri City's momentum looks genuine. The Carrier investment is real, but the leap from current capacity to 80% of national output by 2028 is steep, and no independent verification of intermediate milestones has been offered. What is undeniable is that Andhra Pradesh has built a credible HVAC cluster faster than most states have built any cluster — and Lokesh is using that foundation to make a much larger political and economic argument about what post-bifurcation AP can become.
NationPress
28 Jun 2026
Frequently Asked Questions
What is Andhra Pradesh's AC manufacturing target for 2028?
Andhra Pradesh IT Minister Nara Lokesh has stated that 80% of India's air conditioners will be manufactured in the state by 2028, primarily through the Sri City industrial cluster in Tirupati district. The target follows an intermediate milestone of 60% by 2027.
How much is Carrier investing in Andhra Pradesh?
Global HVAC major Carrier is set to invest ₹1,000 crore in a new manufacturing unit at Sri City, Tirupati. The facility is expected to create employment for around 3,000 people directly and indirectly.
What is Sri City and why is it significant for HVAC manufacturing?
Sri City is an 8,500-acre industrial township in Tirupati district, Andhra Pradesh, housing 250 companies from 31 countries. It already hosts nine leading AC manufacturers and over 30 component and supply chain players, with ₹12,000 crore invested in its HVAC ecosystem.
How many jobs has Sri City created so far?
Sri City has generated 70,000 jobs to date, with Nara Lokesh highlighting that 50% of these positions have gone to women. The new Carrier facility is expected to add approximately 3,000 more jobs.
How does Andhra Pradesh's HVAC push connect to data centres?
Minister Lokesh outlined a vision to make Andhra Pradesh a one-stop hub for data centre infrastructure, noting that data centres require advanced cooling systems and high-efficiency chillers — areas where the state's HVAC manufacturing strength provides a direct industrial advantage.
