Can Telangana and Andhra Pradesh Seek Manufacturing Opportunities

Jun 17, 2020 02:21 PM

Ever since the coronavirus broke out there has been news of manufacturing shifting away from China. While Chinese have extremely competitive manufacturing capabilities, it is assumed companies may look to diversify because virus outbreaks would mean continuous lockdowns at some point or another. Also, India wanted to take advantage of brand China taking a beating.

Even locally Telangana IT minister KTR and Andhra Pradesh Chief Minister Ys. Jagan had issued statements about the government’s willingness to promote micro, small and medium scale industries.

One reason Chandra Babu Naidu, former CM of Andhra Pradesh has been successful in bringing a great number of IT companies to Hyderabad, is because he focused on a single sector. And investors, entrepreneurs in that sector were given every kind of assurance, assistance needed to invest in Hyderabad. Even for a single sector, his administration had to do a lot of work, which changed twin cities forever.

Are KTR and YS Jagan equally focused? Of course, we’d like them to be successful in bringing all the manufacturing to the Telugu states. But is it so easy to fight with established players like China? So, instead, they should take a cue from Mr Naidu and focus on one or few sectors where we can be extremely competitive and get to work.

Also, things are not the same as they were before the IT revolution in Hyderabad or Amaravati. Real Estate prices have gone up considerably. Manpower costs have increased a lot. And a lot of unorganized labor force prefers to work freelance for higher costs than take up full-time employment. To top it up, the workforce from states like Bihar are not too keen on getting back to the job market in the event of the corona. All these things make the job of entrepreneurs very hard.

We hope the CM’s of both states work everything to the minutest detail and not miss out on this great opportunity.

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