The year could go down in history as the year of hope. People elected crucial leaders like Narendra Modi in New Delhi, N. Chandrababu Naidu in Andhra Pradesh and K. Chandrasekhar Rao in Telangana State, wishing that balanced governments would kick-start growth in a moribund economy.
While the first half of 2014 was immersed in elections, the next six months were too short a time for the leaders to make much of a difference. Even though the best efforts of the three leaders, the hopes of “acche din” by businessmen has remained just that a hope.
Implementing tax concessions for AP and TS has forced industrialists to postpone investment decisions in both the states is inactivity with central govt.
Devendra Surana, former president of Federation of AP Chambers of Commerce and Industry said “Though the industrial scenario across the country has been bad in 2014, TS appears to be the worst affected. There have not been any new investments in the industrial sector since the state was divided, because industrialists have adopted a wait-and-watch approach to get the benefit of the special package offered by the Centre in February.”
“If I set up my factory in a district which won’t get tax benefits later, then I will not be able to compete with other manufacturers,” he added.
Mr Surana said, poor power supply in TS has compounded the problem.
The main pillar of Hyderabad’s economy the IT sector. Hyd-based Cyient (formerly Infotech Enterprises) chairman B.V.R. Mohan Reddy said “The year 2014 has been positive for TS. Its great advantage is Hyderabad. There has been good growth in the IT industry and the entire start-up ecosystem has matured in the city this year.”
An expert said “Despite some small companies and a major glass producer, TS has not seen any major shift in companies.”
AP on the other hand got a shot in the arm, thanks to the recommended capital. Companies and diplomats are queuing up to meet Chief Minster N. Chandrababu Naidu to dip into the business opportunity in the construction of the new capital.