Andhra Pradesh CM N. Chandrababu Naidu has launched an aggressive investment and reform-driven revival strategy as the state attempts to reclaim its position as a major economic hub. Speaking to Business Today TV, Naidu said the past 16 months have been focused on systematically rebuilding institutions, restoring fiscal balance, and re-establishing Brand Andhra Pradesh after a turbulent five-year period.
Naidu’s return to power in 2024 with a historic 94% strike rate as part of the NDA alliance, he said, reflects “deep public confidence” in his vision. “The state had a very bad time. Institutions were defunct, finances were strained, and investor sentiment collapsed. My mission was to bring back stability—and then accelerate growth,” he said.
Naidu’s tech push
Naidu said the rebuilding phase is now giving way to a high-growth strategy anchored in technology. Drawing from his legacy of creating Hyderabad’s IT ecosystem in the 1990s, he emphasized that the next boom will be driven by AI, quantum technologies, drones, electronics, and green energy.
To leverage this, the state has announced Space City, Drone City, Electronics City, and a Quantum Valley, with India’s first publicly deployed quantum computer expected to arrive by January. Naidu claims Andhra Pradesh has already attracted Rs 20 lakh crore in investment commitments within 18 months, with the potential to generate 20 lakh jobs.
Escrow accounts
A key reform is an escrow-based, sovereign-guaranteed clearance mechanism that eliminates investor interaction with government officials. As per the new norms, the state government will set up escrow accounts for investors to guarantee timely disbursal of promised incentives. Once an MoU is signed with the Andhra Pradesh government, an escrow account will be created automatically to enable real-time fund release through the bank, removing the need for any follow-ups, with a sovereign guarantee offered if required.
“Once a factory starts, incentives and permissions will be automatic. This is true ease — and speed — of doing business,” he said.
Naidu projects another Rs 30 lakh crore in investments and up to 50 lakh new jobs in the next three years. His “One Family, One Entrepreneur” initiative aims to build an AI-literate, globally competitive knowledge economy.
“My goal is clear,” Naidu said. “Make Andhra Pradesh a global innovation hub and see Telugu people emerge as global leaders.”
Earlier today, Naidu said Andhra Pradesh has signed investment deals worth Rs 13 lakh crore in just two days at the CII Partnership Summit. With this, total investments secured by the State have crossed Rs 20 lakh crore, including Rs 8.87 lakh crore mobilised in the past 16 months.
The government is targeting $500 billion in overall investments. Naidu also laid the virtual foundation stone for three Raymond Group projects totalling Rs 1,202 crore, including an apparel unit at Ratpadu and two manufacturing plants for auto and aerospace components in Anantapur district. All three projects are expected to begin operations by December 2027.
FDI weakness sets the context
The renewed push comes at a time when Andhra Pradesh has been struggling to attract foreign direct investment. Between October 2019 and June 2025, the state received only $1.27 billion, ranking 14th among Indian states, far behind its southern peers.
The contrast with neighbouring states is stark. In the June 2025 quarter, Andhra attracted just $307 million, while Karnataka received $10 billion, Tamil Nadu $5.4 billion, and Telangana $2.3 billion. Even smaller states such as Kerala and Haryana posted stronger inflows. Andhra’s share of national FDI has remained at 0.2%–0.7% over the past six years, compared with Karnataka’s 14%–28% and Tamil Nadu’s 3.7%–10%.
Cumulatively since 2019, Maharashtra has drawn $94 billion, Karnataka $63 billion, and Gujarat $46 billion. Tamil Nadu brought in $17.3 billion, and Telangana $11.2 billion. Andhra Pradesh’s $1.27 billion places it behind not only its neighbours but also states like Haryana, Rajasthan, and Jharkhand.
