Two Years of Accomplishments
Andhra Pradesh, the newly created state with a battered economy, rose to occupy the third place in a short period of just two years with $ 6.1 billion investments. Globally, AP has made it to the fifth place in attracting FDI in states and municipalities.
Even as India emerged as the top destination for foreign direct investment( FDI) in 2015, the newly created Andhra Pradesh has registered an impressive growth in attracting foreign funds by ranking third most popular state in the country, according to fDi Intelligence, a unit of the Financial Times group.
Among Indian states, Gujarat received the highest FDI in the country. Of the total inflows to India and China, the western state received 10 %, with $ 12.4 billion in investments, while Maharashtra with $ 8.28 billion ranks second. Andhra Pradesh, the newly created state with a battered economy, rose to occupy the third place in a short period of just two years with $ 6.1 billion investments.
It is indeed remarkable for Andhra Pradesh to be in the reckoning for FDI in such a short time.
The state was down in the dumps after the truncated Andhra Pradesh was left with no resources, no large industrial base, no capital city and no proper administrative set up following the most unscientific and unjust bifurcation in 2014.
It was a time when AP looked like it was destined to rot as one of the backward states in the country with a huge fiscal deficit and uninspiring economic brass tacks. The special category status that was promised on the floor of Parliament failed to materialise. The fiscal deficit and special assistance expected from the Centre remained unfulfilled for a variety of reasons.
Despite all this gloomy scenario, the
one thing that made a difference to the state was the newly elected government with the hugely experienced, self-motivated and die-hard Chief Minister Chandrababu Naidu at the helm.
Indeed, Naidu was a seasoned administrator having turned around the sleepy city of Hyderabad into a bustling IT centre, rivalling the silicon valley of India, Bangalore. Still, very people believed that it was possible to make a difference to the residual state of Andhra Pradesh, battered as it was on all fronts in the division process.
But the Chief Minister proved even his most bitter critics wrong by creating a positive environment conducive for investments through Sunrise Andhra Pradesh brand. While the cynics continued to sulk, Naidu went on whirlwind tours to China, Japan, Singapore, Britain and Davos and convinced them to invest in Sunrise Andhra Pradesh. From the Partnership Summit to several investement conclaves that the Government held to attract investments showed almost immediate results. The Partnership Summit in Vizag alone netted some Rs 6 lakh crore investments.
The efforts to make the administration responsive to investors paid off with the World Bank ranking the state second among businessfriendly states in the country. The CM was dogged in his pursuit of transforming the state favourable for businesses and investments through policy changes, pro-active governance and personal initiative.
Meanwhile, India was the top destination for foreign direct investment( FDI) in 2015. Asia’ s third largest economy raced past China— which was at the top for many years— with $ 63 billion worth of foreign investment.
Andhra Pradesh has the distinction of attracting a few high-profile projects the last year. Foxconn, the Taiwanese manufacturer which makes iPhones, has set up shop in Sri City.
Globally, AP has made it to the fifth place in attracting FDI in states and municipalities. AP has also been named as the Aspiring Leader category in World Bank rankings.
But as important to note is the emergence of AP as the challenger within India. The state is set in every way to rise up the rankings sooner than later. v JUNE 2016 ANDHRAPRADESHMAGAZINE. COM 41