The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has set up industrial zones in Srikakulam, Palasa and Tekkali.
In 2015, several proposals for setting up industries in Srikakulam remained on paper because of opposition from local residents to new projects. The land prices have sky-rocketed and skilled labour were migrating to other districts in search of opportunities. It is learnt that 4 lakh out of 25 lakh population have migrated. As of October 2015, the Industries department have received 43 applications for setting up major industries and 1936 applications for small and medium industries. The major hurdle for setting up industries is acquisition of land.