Andhra Pradesh’s New Approach to Attracting Investments

In a shift from the traditional approach of “ease of doing business,” Andhra Pradesh has introduced a new mantra—“speed of doing business”—which played a key role in securing an agreement with Tata Consultancy Services (TCS) to establish a campus in Visakhapatnam, all in a swift 90-minute negotiation. Minister Nara Lokesh shared this insight at the ITServe Alliance Synergy Conference held in Las Vegas, emphasizing that the state’s goal is to expedite investment processes to drive rapid economic growth.

Lokesh highlighted that under Chief Minister N. Chandrababu Naidu’s leadership, Andhra Pradesh is reimagining governance through business process reengineering. The state aims to simplify bureaucratic processes to deliver governance directly to the people, minimizing the role of traditional officials and focusing on speed and efficiency.

During his meeting with Tata Sons Chairperson N. Chandrasekaran, Lokesh received pivotal advice: focus on speed. Taking this to heart, he said Andhra Pradesh is dedicated to building a business-friendly environment that accelerates investment activities. The quick agreement with TCS, he added, is a prime example of this new approach. Lokesh recently announced that the upcoming TCS IT facility will host around 10,000 employees in the state.

He noted that for companies investing billions in projects, even a six-month delay can disrupt business plans. Lokesh underscored the need for national-level policy support to make India a top investment destination and pointed out that Andhra Pradesh faces competition not only from Indian states but also from international players like Vietnam in electronics and Ecuador in aqua exports.

Lokesh believes that Visakhapatnam, with its strong connectivity and skilled workforce, has the potential to be the state’s IT hub. With humor, he quipped, “If Bangalore and Goa were to have a child, it would be Visakhapatnam,” underscoring the city’s unique blend of urban vibrancy and coastal charm.

Reflecting on the previous government’s efforts, Lokesh mentioned that merely digitizing existing processes wasn’t enough to foster growth. This time, he explained, Andhra Pradesh aims to fundamentally improve these processes to maximize efficiency.

Looking ahead, Lokesh pointed out that globally, data centers are attracting $300 billion in investments, and Andhra Pradesh intends to capture a significant portion of this, aiming to bring $100 billion into India, with the majority directed toward the state.