- Andhra Pradesh’s rank falls from No. 1 to No. 8 within two years
- NITI Aayog figures show industries moving out of Andhra Pradesh
- AP slips into a worse position than smaller states such as Goa and Odisha
- Industries allegedly shifting to neighbouring states because they cannot pay commissions to coalition leaders
- Land worth crores being handed over to benamis in the name of industries
- State economy deteriorates under Chandrababu and Lokesh’s policies
- Debt reaches 35% of the State’s Gross Domestic Product
- Is this the wealth Chandrababu claims to have created?
- Andhra Pradesh devastated during 25 months of the Chandrababu-led coalition government
- Opposition YSR Congress Party demands an apology from the father-son duo to the people of the State
Whether an industry wants to establish a new unit in Andhra Pradesh, continue an existing operation or bring in fresh investment, it allegedly has to pay commissions to Chandrababu, Lokesh and other senior coalition leaders. Instead of “Ease of Doing Business,” Andhra Pradesh is now facing a “Fees for Doing Business” environment.
This allegation has gained further strength after Andhra Pradesh’s steep fall in the NITI Aayog’s Investment-Friendly Index–2026. Andhra Pradesh, which once stood at No. 1 in the country, has now fallen to eighth place. This exposes the hollowness of the publicity carried out by Chandrababu and Lokesh over industries, investments and job creation. It has become clear that they are misleading the public by making false claims from public platforms.
At the same time, the State’s financial position has deteriorated severely. NITI Aayog has reportedly stated that Andhra Pradesh’s debt has reached 35% of its Gross State Domestic Product. Economists and intellectuals are questioning whether this is the “wealth creation” achieved by Chandrababu in 25 months.
No. 1 for Three Consecutive Years Then — Eighth Place Now
Andhra Pradesh is being devastated under the 25-month rule of the Chandrababu-led coalition government. On one side, there is alleged “Red Book” political harassment; on the other, MLAs and coalition leaders are acting without restraint. As a result, Andhra Pradesh’s Ease of Doing Business ranking has fallen from No. 1 to No. 8.
This is not merely a claim being made by the YSR Congress Party; the NITI Aayog report itself reportedly makes the position clear. Despite facing a pandemic such as COVID-19, Andhra Pradesh under former Chief Minister Y.S. Jagan Mohan Reddy stood first in the Ease of Doing Business rankings for three consecutive years. The State has now fallen to eighth place.
What is even more alarming is that Andhra Pradesh has slipped behind smaller states such as Goa and Odisha.
The fall from the No. 1 position just three years ago to the present situation has triggered widespread discussion in industrial circles. It is being viewed as evidence of declining investment and an atmosphere that is creating fear and uncertainty among industrialists.
Among the country’s 17 major states, Andhra Pradesh reportedly stands in sixth place. NITI Aayog has also pointed out several failures in the implementation of industrial policies in the State. In particular, incentives promised to industries are allegedly being delayed considerably, damaging the confidence of investors.
It’s all Hollow
NITI Aayog released its rankings of investment-friendly states for 2026 on Friday. Among all 36 states and Union Territories, Gujarat secured the top position with 56.6 points. Andhra Pradesh slipped to eighth place with 48.7 points.
The NITI Aayog rankings have exposed the Chandrababu government’s exaggerated claims about investment. The rankings were based on eight broad parameters, including infrastructure, the business-friendly environment, availability of resources, government policies, simplification of regulations, the State’s financial condition and environmental resilience.
Crores wasted on Foreign Trips
The NITI Aayog report has shown that the foreign tours undertaken in special flights in the name of attracting investments, along with the large-scale advertisements issued in national media by spending hundreds of crores of public money, were all a sham.
The father-son duo travelled to Davos twice in two-and-a-half years, claiming that they would bring investments, but returned empty-handed. Lokesh also toured Singapore, London, Australia and, most recently, South Korea. Despite visiting so many countries, not even a rupee of investment reportedly came to the State.
The publicity created by Lokesh and Chandrababu in the name of attracting investments and establishing new industries has burst like a bubble with the release of the Ease of Doing Business rankings.
Lokesh had repeatedly claimed that investments worth Rs. 23 lakh crore had come to the State and that lakhs of jobs had been created. It has now become clear that those claims were nothing more than empty talk.
Industries are Fleeing
Industrial establishments are allegedly leaving the State because coalition leaders are demanding shares and commissions from them and resorting to attacks and intimidation against companies that refuse to pay.
Several companies, including Hindustan Coca-Cola Beverages, Azad India Mobility and Jinfra Precisions, have reportedly cancelled their land allotments, withdrawn their investment proposals in Andhra Pradesh and moved away.
It is significant that NITI Aayog has now also pointed out serious failures in the implementation of industrial policies in the State, delays in providing incentives to industries and declining confidence among investors.
Companies abandoning allotted Land and Leaving the State
The fact that industrialists are giving up even lands allotted with Cabinet approval and leaving the State shows the extent to which the so-called “Red Book Constitution” is operating in Andhra Pradesh.
Several companies—including Hindustan Coca-Cola Beverages, Azad India Mobility, which was approved in the first SIPB meeting of this government, Jupiter Renewable Pvt. Ltd., approved in the sixth SIPB, and Jinfra Precisions, approved in the seventh SIPB—have reportedly withdrawn their investment proposals and exited the State.
Hyderabad-based iSpace Technologies also withdrew its proposal to establish an IT campus in Visakhapatnam with an investment of Rs. 119.18 crore, which was expected to provide employment to 2,000 people. It is significant that the company backed out even after the government issued orders on 12 November 2025, allotting it two acres of land in Madhurawada.
The total value of investments withdrawn even after land allotments by this government reportedly exceeds Rs. 6,215 crore. This reflects the deteriorating industrial climate in the State and the alleged collection of commissions by senior TDP leaders.
A Record in Borrowing
NITI Aayog has reportedly made it clear that the State’s weak financial condition is a major reason for Andhra Pradesh’s poor performance in business-friendly governance.
The State’s debt has now reached 35% of its Gross State Domestic Product, which is reportedly 13 percentage points higher than the average debt-to-GSDP ratio of large states. The average debt ratio among 17 major states is said to be only 22%.
Before completing even two years in office, the Chandrababu government has allegedly borrowed Rs. 3.40 lakh crore, pushing the State deeper into a debt trap.
The borrowings reportedly include:
- Rs. 1,80,603 crore through budgetary loans
- Rs. 1,12,504 crore raised through public-sector institutions with government guarantees
- An additional Rs. 47,387 crore in the name of developing Amaravati as the capital
Lokesh’s Tweet: The Height of Misinformation
Even when the actual situation is visible with supporting evidence, coalition leaders continue their aggressive propaganda claiming that industries fled Andhra Pradesh during Y.S. Jagan Mohan Reddy’s tenure.
The latest example is Lokesh’s tweet demanding that the entire State apologise to his party’s former MP, Galla Jayadev. This can be described as the height of their misinformation campaign.
The companies associated with Galla Jayadev continued to operate in Andhra Pradesh both then and now. Despite this, Lokesh is indulging in meaningless political propaganda.
It is not the State that should apologise to Jayadev. Chandrababu and Lokesh must apologise to the people of Andhra Pradesh for their failures.
They must apologise:
- For failing to create wealth and instead pushing the State into debt
- For driving industries away through the “Red Book Constitution”
- For destroying the reforms and welfare schemes introduced by Y.S. Jagan
- For pushing Andhra Pradesh into decline
The YSR Congress Party demands that Chandrababu and Lokesh admit their mistakes and apologise to the people of the State.
