The importance of Visakhapatnam as a port city in South India has been recognised for a long time but there seems to be an added impetus to the growth of the city after the bifurcation of the State, even though Vijayawada has been chosen as the capital due to its central location.

The prominence of the city got highlighted once again when it figured along with Ajmer and Allahabad during Prime Minister Narendra Modi's US tour. The three cities have been identified for development with the funding and assistance of the U.S. as smart cities. The Prime Minister had announced during his election campaign here that he would ensure that the city gets is rightful recognition as a gateway for international trade and keeping his promise he has managed to get the U.S. to promise its support to Vizag.

According to State BJP president and Visakhapatnam Member of Parliament K. Haribabu, it clearly showed the Prime Minister's commitment to the development of Vizag and there should be no doubts now on the future of the city. “The decision to set up the State Capital near Vijayawada has been taken only in view of the central location of the city in AP and it would in no way mar the prospects of Visakhapatnam. Vizag is the largest and fastest growing city in AP,” Haribabu said. He said the city was on the priority list of both Prime Minister Modi and Union Minister for Urban Development Venkaiah Naidu, and "both have many things planned for its future."

O. Naresh Kumar, the CEO of Symbiosys, a local IT company, expressed happiness that the U.S. had come forward to fund Visakhapatnam as a smart city. He said the city would grow into a premier IT destination and as a port it was as important on the east coast as Mumbai on the West. It is a key location in the nation’s Look East Policy both on defence and commerce fronts.

Ch Ramakotaiah, a member of the national executive of the Builders' Association of India, said the Prime Minister's interest in developing Visakhapatnam​ as a smart city was quite evident and the people's representatives from the region should make use of the opportunity and strive for its balanced growth.

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