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