Seemandhra region may get fillip from division

“There is very little possibility of attracting new investments in Telangana as many investors doubt the effectiveness of future governance. The present position of industrial progress will become stagnated and limited only to three to four districts. Backwardness of agriculture,poverty,unemployment and poor infrastructure in some Telangana districts would result in large-scale migration and unrest in the near future,” an official from an infrastructure company said.

The fact that the Andhra business community has an upper hand in terms of investments in the Telangana region is undisputable. “There has to be a level-playing field in the economics of bifurcation,which is essentially the business class from the Andhra region versus the entrepreneurs from Telangana,” said senior leaders in the state.

In fact,the Seemandhra region,referring to the Rayalaseema and Coastal Andhra region together,could actually gain from the division,and the business and construction activities associated with a new capital city could give its economy a fillip.

Telangana is the largest of the three regions in Andhra Pradesh and contributes more than 62% to the state’s revenue including Hyderabad,and is home to 40% of its population. In comparison,Coastal Andhra accounts for 14% of the state’s earnings and Rayalaseema brings in just 4%. “As far as business is concerned our investments are moving towards the world and not just within the state. Back home too,we have seven plants in Hyderabad,five in Vizag and one in Miryalguda. As long as the society is calm,it should not be a hindrance,” Abhijeet Mukherjee,president,global generics,Dr Reddy’s Laboratories,said.

One industry that is unfazed by the bifurcation is the entertainment sector. “The bifurcation will not hamper the film industry. Telugu film audiences are across the globe and only 30-35% of viewers are from Telangana region. In Andhra Pradesh the theatre and satellite business put together will be around R1,000 crore,” Daggubati Suresh Babu,a film producer who runs Suresh Productions,told FE. “The Telugu film industry should aim at expanding their global audience base and not restrict themselves to regional markets.”

Similarly,other industries including the IT sector are less perturbed. IT companies that have invested in Hyderabad have done so owing to the availability of good infrastructure and talent which gives it a competitive advantage over other states.