Andhra Pradesh is left without any Growth Engine after the bifurcation and so the state government is keen on attracting investments anyhow. But then, this comes with a tricky rider. Companies want huge incentives which make those investments non-productive.
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For an instance, the state government is wooing Apple to Setup a manufacturing Unit in Tirupati. Forget about earning through this big ticket investment, the state will give to roll out incentives worth 100s of Crores for the company. In a way, the company wants to cash in AP’s desperation.
In fact, the central government itself is stunned by the list of incentives sought by the company. But the fact is that Apple needs Indian Market desperately and setting shop here is important for the company. The Mobile Phones Manufacturing Giant is trying to cash in the competition between the states.
Further, Andhra Pradesh’s Desperation is making such companies more greedy. On the other side, Telangana Government is maintaining strict vigil on the incentives it offers to the companies and the government is not entertaining the companies which are too greedy. But AP is taking chances to create a suitable ecosystem and brand image.
