'Ease of Doing Business' triggers surge in investments in AP
Amaravati: Andhra Pradesh's industrial landscape is transforming rapidly, with the coalition government's shift to 'Ease of Doing Business' triggering a record surge in investments and a new national narrative: 'AP is Back'.
In the past two years under Chief Minister N Chandrababu Naidu, nearly 800 companies have shown interest in investing in the state. Proposed investments now stand at Rs 23 lakh crore, with the potential to create around 23 lakh jobs. Of this, Rs 21.64 lakh crore is tied to formal MoUs, expected to generate 21.20 lakh jobs. These agreements span the 2025 Partnership Summit and multiple other platforms and engagements.
Since forming the government, Chief Minister Naidu has recalibrated the state's industrialization approach. Moving beyond the 'Speed of Doing Business' model of 2014'19 that brought marquee projects like Kia to Penukonda, the government has now doubled down on 'Ease of Doing Business'. The result: a flood of MoUs and large-scale investor interest.
'The AP is Back' narrative is resonating nationwide. Firms that once exited the state during the previous five years are now lining up to invest. Unlike past practices where MoUs remained on paper, the current administration has built a dedicated monitoring architecture to chase every agreement to ground level.
Of the Rs 21.64 lakh crore in proposed investments via MoUs, 68.02% are already in process. About 60.44% have moved from DPR submission to grounding stage, while 21.39% have completed land allotment. This execution rate, officials say, is unprecedented.
To drive implementation, the government has appointed special nodal officers for three regions and assigned clear responsibilities to district collectors. CM Naidu has directed officials to act not just as administrators but as 'marketing managers' for the state, actively following up with investors and resolving bottlenecks.
Chief Minister Naidu and IT & Industries Minister Nara Lokesh are personally reviewing MoU progress. Their constant engagement with the Centre has unlocked key projects.
The AMCA project, cited as proof of the state's pace and intent, began work within just 36 days of initiation. For Google's data centre, the state convinced the Centre to amend regulations after direct discussions between CM Naidu, Minister Lokesh, and Prime Minister Narendra Modi. Similarly, the government secured central approval for a dedicated slurry pipeline for ArcelorMittal's project.
The impact is visible in numbers. Andhra Pradesh now accounts for 25.3% of the Foreign Direct Investment that has come into India recently. The state's proactive chasing of MoUs, officials note, is unlike any other in the country and is leading to faster grounding of projects.
The state's aggressive investment push has sparked debate in neighbouring states. National media reports on 'Naidu Giri' in attracting investments are being widely discussed. Royal Enfield's decision to choose AP over Tamil Nadu became a flashpoint for such debate in that state.
With policies designed to attract capital and accountability fixed at the officer level, confidence among domestic and global investors has risen sharply. 'AP is Back' is now a strong refrain in industrial circles. Across sectors, there is growing consensus that Andhra Pradesh's youth are set to see lakhs of new jobs in the coming years as these investments materialise on the ground
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