Interview: Nara Chandrababu Naidu, Chief Minister of Andhra Pradesh

By UK India Business Council (UKIBC)

Nara Chandrababu Naidu has big plans for the recently bifurcated state. He tells Sarah Cartledge why he believes its new capital city, Amaravati, has the potential to become one of the top ten cities in the world

Nara Chandrababu Naidu has nearly 20 years’ experience in state government, as both Chief Minister and in opposition in the original and then the reduced State of Andhra Pradesh. Throughout this time he has emphasised the need to push for the development of better information and communications technology (ICT) in India. As part of this drive, Naidu was instrumental in setting up the Microsoft software development centre in Hyderabad, the second such place outside of Seattle in the US. The centre is home to T-Hub, India’s largest technology incubator in developing accelerators and start-ups, and is recognised by Microsoft as representing India’s technology talent.

Despite growing up in a farming family in a remote rural area, Naidu has always had an eye on the future. From the days when he used to walk a mile and a half to primary school, his emphasis has been on education and improvement for the state’s inhabitants. In 2000, he was voted IT Indian of the Millennium by a poll in India Today and 20:20 Media. Now he has the opportunity to create a new city, Amaravati, that will fulfil his aspirations to create a 21st century India.

It’s clear from the rousing reception he was given at a conference near Westminster that the majority of London’s Indian diaspora believe he can achieve his goals. As he walked in to the room he was surrounded by a huge crowd of well wishers, treating him almost as a film star. And his dynamic personality and reputation is a major part of his success, both in the UK and India.

BUILDING A CITY

Despite starting off with a revenue and power deficit, Andhra Pradesh has become one of the fastest growing states within two years. In his vision for a Smart City Naidu has been supported by the Singapore Government which has provided three potential plans for the city and the capital region. “It is very dynamic planning,” he explains. “The capital is not only an administrative city, but one with economic equity, dynamism, social equity and wealth creation for the state.

“We are building nine cities within the capital, including an administrative city, a justice city, a financial services city, a knowledge city, a sport city, a health city and so on.”

OPPORTUNITIES FOR GROWTH

Naidu is passionate about the growth potential of Amaravati, and takes confidence from business growth within the region. “We are doing very well with businesses,” he says. “This year, the level of growth in India is 7.6 per cent, whereas growth in Andhra Pradesh is 10.9 per cent. We’re number one in the country. We have ensured the creation of 220,000 jobs by building several industrial zones and corridors, food parks and other business spaces to touch a growth of 10.9 per cent against the national average of 7.5 per cent.”

“From being ranked second in the Ease of Doing Business in India rankings, to being a state with third highest FDI in India and China, to becoming the first state in India to ensure energy efficiency by lighting up over 90 per cent of the state’s households with LEDs, we have come a long way.”

In addition, the State now has a power-surplus. Naidu is working on increasing revenues from agriculture by making it profitable, while simultaneously balancing industrial development. He is keen to win over the agriculturally-based community by landpooling – encouraging farmers to donate their land to the new city area for a financial return in the future.

“The state has many advantages – very dynamic people, river resources, water resources and wealth. Wherever there is a sea coast, there is four to five times better development compared to inland. I want to promote the city of Amaravati in a big way and our aim is to make it one of the top ten cities in the world,” he says.

FOREIGN INVESTORS

Current investment opportunities in Andhra Pradesh appear promising. At the beginning of January the State received commitments for investment worth Rs 4.78 lakh crore or 4,780,000 rupees (£47.8bn) at the CII Partnership Summit held in Visakhapatnam.The proposals involved 331 Memorandum of Understandings (MoUs) that the state signed with companies and promised to create a million jobs.

Naidu firmly believes a bright future awaits the new State of Andhra Pradesh. “We have created excellent industrial policies, even sector-wise. We are giving excellent incentives for all different sectors including electronics, automobiles and agro-processing,” he says. “Population, growth of education, better conditions for the population and technology advances are very strong, especially in IT.”

TOURISM

The Chief Minister is also gearing the State up for tourism, particularly ecotourism, and building the necessary infrastructure in the forms of ports, airports and roads to encourage visitors and businesses alike. “These are the initial years which will shape our State’s future. And we are treading carefully, taking baby steps towards development,” he comments.

“I have experience. I have a vision. By 2022, Andhra Pradesh will be ranked among the top three states of India. By 2029 it will be the place with the highest happiness index in the country. By 2050, it will be the best destination in the world. We are working to reach that and the citizens of Andhra Pradesh will reap the benefits.”


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