Andhra Pradesh's Investment Meteoric Rise
Andhra Pradesh, which had been a late bloomer in attracting major investments following the bifurcation that created Telangana in 2014, is now scripting a remarkable turnaround. The state is aggressively punching above its weight, most notably by securing a colossal $15-billion investment from Google to establish an artificial intelligence (AI) hub and data centre. In an exclusive conversation, the state's Minister for Human Resource Development, IT, and Electronics, Nara Lokesh, detailed the strategy behind this success, the competition with other states, and his vision for the future.
Record Commitments and an Ambitious Trillion-Dollar Dream
When asked about the investment front, Minister Lokesh described the journey as "amazing." He revealed that Andhra Pradesh has secured firm commitments worth nearly $120 billion in just the last 17 months, a figure he claims is "unheard of in the Indian context." However, the minister expressed that he remains "hungry" for more, setting an audacious goal. "I want it to be a trillion dollars," Lokesh stated. "I'll sleep well the day when we have a firm commitment of a trillion dollars' worth of investments in Andhra Pradesh."
The 'Speed of Doing Business' as a Core Differentiator
A pivotal shift in the state's approach has been its focus on speed rather than just the ease of doing business. Lokesh explained that while easing regulations was the historical focus, his government prioritized how fast they could handhold a project through its entire lifecycle. He used the Google project as an example, highlighting the massive interest costs saved by avoiding a six-month delay on a $15-billion investment. "As investment sizes become large, it is important that states run faster. I believe India should run faster," he asserted. This culture of speed is set to yield further results at the upcoming Partnership Summit in Visakhapatnam on 14-15 November, where 410 MOUs involving over $100 billion in investments and an employment potential for 700,000 jobs will be signed.
Navigating State Competition and Incentive Debates
On the fierce competition among Indian states, Lokesh maintained a constructive outlook, saying, "When states compete, India wins." He acknowledged that this competition sometimes leads to a war of words, referencing his recent verbal duel with ministers from Karnataka. He attributed it to the use of certain language by the neighbouring state, which "pissed us off," but affirmed that Andhra Pradesh would remain dignified in its approach. Addressing criticism about offering unsustainable incentives, Lokesh countered that all states provide them. He argued that Andhra's success, such as with the ArcelorMittal investment, stems from relationship-building and execution speed, not just incentives. He did, however, confirm the controversial policy of offering land at 99 paise in sectors where an ecosystem does not yet exist, a move that helped attract IT giants like TCS and Cognizant to the state.
Job creation remains a central focus, tied directly to the first promise in the government's election manifesto: creating 2 million jobs. This is also seen as a pathway to overcome the financial stress the state faced after bifurcation. Lokesh credited the state's progress to the guidance of Chief Minister Chandrababu Naidu, leading a young team. "We are his missiles," Lokesh said, "and he is the GPS ensuring that we achieve our objectives."
