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The region around the city has fertile soil and irrigation is supported by river Krishna and its canals. Major crops include sugarcane, paddy and Mango. Vijayawada is famous for automobile body building, garment, iron and hardware small scale industries. Small scale automotive industries 'Jawahar Autonagar', was the largest automobile township in Asia for sometime. The main markets are situated in the old city, formerly called One Town and Kaleswara Rao Market area. It is estimated that nearly INR 10 crores of garment business takes place in the Vastralatha building alone in the One Town on a daily basis. Garments are mainly sold in Besant Road and Governor Pet, but now this activity is also happening in the malls that have come up in Labbipet and M.G. Road areas. The city is also famous for different kinds of wholesale business. They include garments, iron market,pulses, cereals, and other edible products, fancy markets, fertilizers, mango exports, pharmacy, metal and so on. The city is one of busiest and crowded places due to its strong commercial hold in the entire state. Vijayawada is called the 'Commerce Hub' of the Andhra state, for it provides the right environ for all the agricultural and industrial goods to be transported in/out and traded in one single place.

Vijayawada is the busiest railway junction in South India, and is second biggest junction in India and only railway station to have escalators after New Delhi. The fact that Vijayawada is well connected through railways keeps it the main hub of commercial activities.