Telangana’s IT Minister, K Taraka Ramarao, recently inaugurated the Global Development Centre of an IT company in Warangal. Emphasizing the importance of IT companies extending their reach to Tier-2 towns. He expressed the belief that the future of IT growth lies in these towns and urged companies to consider establishing their presence in places like Bhimavaram and Nellore, even offering to recommend them to the Andhra Pradesh Chief Minister, Jagananna, for land allocation.
This move reflects a shift in the dynamics of IT investments between Andhra Pradesh and Telangana. Between 2014 and 2019, Andhra Pradesh, under CBN leadership, was a preferred destination for investment, boasting a top ranking in Ease of Doing Business and consistent position in the top tier for attracting Foreign Direct Investments.
However, the political situation changed in 2019, with Andhra Pradesh shifting focus towards populism, loans, and freebies, resulting in financial struggles, including salary payment delays. In contrast, Telangana has strategically concentrated on expanding its IT sector beyond major cities, redirecting attention to Tier-2 towns.
This approach has been instrumental in attracting investments and nurturing a conducive environment for IT growth. While KTR’s intentions may be well-meaning, they underscore the contrasting fortunes of the two states in the IT sector, with Andhra Pradesh’s once-prominent cities like Vishakapatnam and Vijayawada now facing challenges in this domain. The situation serves as a stark reminder of the shifting dynamics within India’s IT landscape.