How Chandrababu Naidu's Return To Andhra Pradesh Will Impact Tamil Nadu Investment Push

Located at the southern end of Andhra Pradesh, just 55 km from the bustling metropolis of Chennai, Sri City is one of India’s most coveted business destinations, with investments that surpass $4.5 billion and exports which exceed $4 billion. It is acknowledged as one of India’s leading business cities and attracts investors from across the globe with 220 companies from 29 different nations setting up their manufacturing operations in the industrial park. With the infrastructure like Sri City already in place, the situation is tailormade for Naidu to go all out to woo investment into Andhra Pradesh. His pro-reform and investor-friendly approach is proven. Read in tandem with his closeness to the Centre as an important constituent of the coalition government must give Andhra Pradesh advantage in attracting investments.

This could yet be the biggest competitive challenge for the Stalin government in Tamil Nadu. In fact, some of the local industries in Tamil Nadu have expanded into Sri City for assorted reasons in the past. The Stalin-led DMK government has to reinvent itself to win the intensely competitive race for investment in the face of an aggressive pro-reform CEO (chief executive officer) of Andhra Pradesh.

The Stalin regime has also to fight a perception battle in the wake of the closure of the Ford plant at Marimalai Nagar and Sterlite copper plant in Thoothukudi. Though on both issues, the present dispensation cannot be directly faulted. It is widely known that a Russian venture had moved to Amethi because of the perception issue. If sources are to go by, a major infra project in the city of Chennai, a joint venture of the state and the centre has developed fund niggles more due to non-business reasons.

Naidu is a lot more accessible and that is a huge advantage for Andhra Pradesh to woo investment. Having won hands down in both Assembly and Parliament elections, the Stalin-led DMK government is in a commanding majority. It can and should stick to its core Dravidian ideology on which the party was founded. Yet, it need not hesitate to deploy practical wisdom to guide Tamil Nadu into a trillion-dollar economy. If majority defines his command, the unfolding competitive ecosystem is ideal for Chief Minister Stalin to go in for decisive moves to bolster the economy of Tamil Nadu.

Given the emerging post-poll business ecosystem, especially in the neighbouring Andhra Pradesh, the elevation of Kanimozhi as leader of the DMK Parliamentary Party is seen as a strategic move by Stalin. No dout, her elevation is interpreted variedly in different quarters within and outside the party. The fact of the matter is that the void left by senior Maran (late Murasolil Maran) largely remains unfilled till date. He was a useful bridge between the party and the powers that be in New Delhi. Kanimozhi, if sources are to go by, is ideally positioned to build bridges with the political spectrum across the canvas in New Delhi.

Like in business, the co-operative competition is playing out in politics as well. Increasingly, globalisation is yielding place to protectionism. Each country is singing the “Make local, go global” song. Within the county, each state is now following this mantra. It is time the Stalin government came up with a “Make in Tamil Nadu” mantra. Core ideology and practical wisdom need not be mutually exclusive in any situation and more so in a new normal environment. 

KT Jagannathan is a senior financial journalist based in Chennai. He has been in business journalism for over three decades, covering corporate developments and critical industry verticals. He is the co-founder of www.carnaticdarbar.com, a news website for Carnatic music, a niche art form.

The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team.