Vanitha Datla, Vice-Chairperson, CII, felt that the decision has cleared the ambiguity over the capital and would certainly help to fast-track growth in Andhra Pradesh.
The city of Vijayawada has the initial and basic infrastructure to build upon. Moreover, it is well connected to the rest of the State through air, rail and road, she said.
In a statement, Datla said building a world-class infrastructure around Vijayawada would offer new opportunities for industry, particularly to the infra companies.
However, she also emphasised that there is a need to decentralise the pattern of development across the State, particularly to the tier-II and III cities.
In this regard the Government's commitment to develop three mega cities and 14 smart cities in Andhra Pradesh would promote overall development, she said.
She said the government should develop more number of industrial clusters throughout the State based on the locally available resources to meet the developmental aspirations of people and create employment opportunities.
Federation of Andhra Pradesh Chamber of Commerce and Industry (FAPCCI) said location of the capital at a central place in the State offers greater scope for overall development.
"Vijayawada and its surrounding areas have long been the business centre of the State and there are vast potential to set up industry and encourage trade and commerce. The development of three mega cities and 14 smart cities is also a very welcome step," FAPCCI said in a release here.
"Industry looks forward to rapid development of the state with friendly trade and taxation policies to boost industrial development."
The Federation said making two or three districts as a centralised industrial corridor would help the State to grow faster. It requested Chief Minister Chandrababu Naidu to announce AP's industrial policy at the earliest.