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

The changed political dynamics in the South, in the wake of recent Parliamentary elections have thrown up a challenge of an unusual kind to the Stalin-led DMK government, which scripted a resounding victory at the polls.The challenge must be read in the context of the return of Chandrababu Naidu-led Telugu Desam Party to Andhra Pradesh. A well-identified pro-reformer, the comeback leader will be determined to put Andhra Pradesh back on the development route yet again. His pet project to make Amaravati the capital city of Andhra is already set for a grand revival. The project was consigned to the cold storage by the former Chief Minister Jagan Reddy.Given the not-so-good equation between the DMK government and the BJP dispensation in New Delhi, Tamil Nadu appears to have a stiff challenge ahead.It is not just because of the return of Naidu. It is also due to his clout with the BJP-led government at the Centre as a critical alliance partner of the coalition. This cordiality between Naidu and the BJP could effectively tilt the balance of the investment ecosystem in the south towards Andhra Pradesh. A leader with a foresight, Naidu has the propensity to work hard on a mission mode.The job is now cut out for an adroit Naidu. The investment community—both from within and outside the country—is looking at Andhra Pradesh with a new sense of assurance and expectation. The cordial equation between New Delhi and the TDP government is viewed as a positive sign by many. This could translate into an advantage spin-off for Andhra Pradesh.In the emerging world order, the investing community isn’t looking for incentives. It is rather scouting for a friendly and hassle-free ecosystem where it can just focus on the business. The returning Naidu has a Sri City on the edge of Tamil Nadu. .The Rise, Fall And Rise Of Chandrababu Naidu, The Two-Time 'Kingmaker'.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..It's Back To The Future For Chandrababu Naidu

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

Stalin's government has to reinvent itself to beat the intense competition for investment against an aggressive pro-reform CEO of Andhra Pradesh.

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

Stalin's government has to reinvent itself to beat the intense competition for investment against an aggressive pro-reform CEO of Andhra Pradesh.

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