Economy of Rajahmundry

Rajahmundry is the biggest city of the East and West Godavari districts of Andhra Pradesh. Rajahmundry Municipal Corporation is the first municipal corporation in the Godavari districts. The city of Rajahmundry is situated at a distance of 400 km towards the east of Hyderabad on the banks of the River Godavari. The city is also known for its versatile Vedic culture and intellect. The city is amongst the oldest city established in India.

Andhra Pradesh Economy

The city is graded as fourth largest by area and eighth in population in Andhra Pradesh. The city houses Population of about 1 million. Rajahmundry has been the Headquarters for Godavari district at the time of British rule.

The main elements that contributed in the economic growth of Rajahmundry are textile, paper and tobacco industries and agriculture (rice and sugarcane).

Rajahmundry Economy

The other factors that help the city Rajahmundry are educated and trained textile employees and availability of good school and textile engineering colleges. There are 225 schools under the municipality. Total literacy rate is 72.80%.

Major Constructions in Rajahmundry

The Greater Rajahmundry:

Rajahmundry Municipal Corporation with a new master plan has revised the OLD 1975 master plan and included townships, high-rise buildings, multiplexes,  shopping malls,  and other facilities.

Multi-Functional Complex (MFC) and 2 Escalators:

Rajahmundry railway station has been planned with multi-functional complex and two escalators. The complex houses a restaurant, shopping mall, budget hotel, food court and other premium services.
The other major constructions in 21st century include WalMart Super Market, Multiplex near Godavari station, and several renowned hotels by private companies like Taj Group.

Trade in Rajahmundry

Rajahmundry has been a major business hub in Godhavari district. The city is second after Mumbai in cloth and bullion business. India has one of the largest cloth market in Rajahmundry. The Rajahmundry's Cloth Market houses many co-operative handlooms which are known for fine quality sarees and men's wear.

The famous Mahatma Gandhi Wholesale Cloth Market located in Thadithota houses 300 shops. The other wholesale shops and retail cloth shops are located between the Main road which starts at Fort Gate and runs till Syamala centre. The city has almost all branded stores like Tummidi Brothers, Chandana Brothers, Vichitra Silks, and Bommana Brothers in different areas of the city. Rajahmundry has the largest bullion markets in India. There are numerous Gold, Silver and Platinum shops located in different parts of the city.

Cotton Saree Rajahmundry

The real estate market in Rajahmundry has also seen a good growth after Visakhapatnam. The industrial development has seen a good growth in Rajahmundry. The new SEZs have been planned between Rajahmundry and Kakinada (NH5 and ADB Roads).

Three multiplex theatres and big shopping malls including Reliance near Chitrangi guesthouse, Anand Regency Hotels and another one near Godavari Railway Station have been constructed.

Industries and Organisations in Rajahmundry

Rajahmundry is an industrial hub which houses many government and private industries across and around the city. The city has many public and private organizations.

Few important organizations are:
  • Andhra Pradesh Paper Mills (APPM)
  • Oil & Natural Gas Corporation (ONGC)
  • Central Tobacco Research Institute (CTRI)
  • Gas Authority of India Limited (GAIL)
  • Ratna Plastics
  • Schlumberger
  • Vijjeswaram power plant.
  • The Coastal Paper Mills (P) limited
  • The Southern Drugs and Pharmaceuiticals Limited
  • Glaxo Smithkline Beecham Consumer Healthcare limited
  • The GVK Industries Limited
  • The Kadiyam Paper Mills
  • GVK Industries/The Jegurupadu Power Plant
  • Rajahmundry Coop.Spng Mills Ltd.
  • The Sarvaraya Sugars Pvt Ltd.,(Coca-Cola Bottling Unit)
  • Nylofils India Limited(united Fishnets Ltd)
  • A.P.Gas Power Corporation Ltd
  • Godavari Ceramics Ltd
  • Amrutha Starch (P) Ltd.,

The other industries located in and around Rajahmundry are textile, mechanical, chemical, Tyre-retreading and paper making industries.

Textile Industry in Rajahmundry

Textile Industry in Rajahmundry

Rajahmundry has been ruled by many dynasties and has served as a main trading center for many dynasties. The city tops in the business of wholesale cloth since many years. There are many businessmen into whole sale cloth business since last three decades. The cloth business turnover in the city Rajahmundry is about Rs.400 crore annually. In ancient times the dynasties made Rajahmundry as the central point of wholesale cloth business.

Rajahmundry has served as wholesale cloth business center since 1970. The famous cloth of the city is synthetic. The main product produced using synthetic in the city is synthetic sarees.

The synthetic fabric business accounts to about Rs.300 crore in East Godavari district, Rajahmundry and Dwarapudi. The popularity of ready-made garments has grown with time making the growth reach to Rs.100 crore per year.

Approximately the city houses 2,000 retail cloth shops in East Godavari district. The city has hundreds of wholesale cloth merchants trading from the coastal and Rayalaseema districts.

The wholesale and retail cloth business in the city has helped the city generate good revenue. The cost price of the cloth in Rajahmundry wholesale cloth market and retail market has made Rajahmundry wholesale business centre popular.

The credit facility offered by the wholesale merchants to small traders has helped the merchants run the business as cottage industry with least investment. The cloth industry caters mainly to middle class segment.  Cloth supplied to Rajahmundry is produced by the mills in Mumbai, Surat, Kanchipuram Banaras, and Dharmavaram.

Paper Mill Establishment

The Rajahmundry Paper mill was established on 29th June 1964 as "The Andhra Pradesh Paper Mills Ltd." at Rajahmundry. The famous paper mill The Andhra Pradesh Paper Mills Ltd. was formed using the funds and high caliber management of Bangurs of Calcutta. The company employs 4000 employees. The indirect job opportunity provides livelihood to 10000 families.


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