Vijayawada is one of the rapidly growing urban markets of the country. The sectors that contribute to the city economy are construction, education, entertainment, food processing, hospitality, registrations, transport, etc. Based on the recommendations of the Sixth Central Pay Commission, it is classified as one of the Y-grade cities of India. According to one study, the GDP of the city in 2010 was $3 billion (Rs. 18,000 crore) and is expected to grow up to $17 billion (Rs. 1,02,000 crore) by 2025. According to another by Oxford the GDP of the city in 2018 was $5.8 billion and is expected to grow up to $21 billion by 2035.

Andhra Cements (1937) was the first cement factory in Andhra Pradesh. Siris Pharmaceuticals was the first pharma company in Andhra Pradesh and was established in 1950.