Naidu Effect: AP Pips Maha to Emerge as Top Investment Destination

According to a study by the Reserve Bank of India, Andhra Pradesh is in the Top Position in attracting project investments in 2018-19 (Chandrababu’s regime) overtaking Maharashtra. The study said that Andhra Pradesh is in the third position in attracting investments between 2014-15 and 2018-19 only after Maharashtra and Gujarat.

In 2018-19, Andhra Pradesh accounted for the highest share – 11.8 percent- in the total cost of projects sanctioned by banks and financial institutions in 2018-19. Telangana (8.2 percent) is in the fifth position in the list. Tamil Nadu and Maharashtra are in the Second and Third Positions.

The primary source of data on investment intentions is the financiers of Capex projects, mainly banks and financial institutions as well as external commercial borrowings, foreign currency convertible bonds, rupee-denominated bonds, and initial public offerings, follow-on public offerings, and rights issues for a year.

These can be by large perfect parameters to decide investments flow to a state and that too coming from a Premiere Government agency. But then, all this did not help Chandrababu Naidu’s regime and it has to be seen how the new Government fares when the results for 2019-20 comes.