A Japanese industrial cluster is expected to come up between Krishnapatnam and Sri City (near Tada) in the Nellore district of Andhra Pradesh. The Japanese cluster is expected to further catalyze already vibrant industrial scene in Nellore district. The region includes Menakur SEZ, Mambattu SEZ, Pantapalem Industrial Park and Ankulapur Industrial Park of APIIC apart from Sri City SEZ in the private sector.

The Government of India announced that Krishnapatnam will be made an industrial smart city and will be made part of the Chennai-Bengaluru industrial corridor, which is expected to receive substantial Japanese investments.