Chandrababu Naidu’s ‘Speed Of Doing Business’ Over ‘Ease Of Doing Business’ Philosophy Is A Welcome Move During Times Of 'Khatakhat'

Recent social media posts by the Telugu Desam Party (TDP) and Andhra Pradesh Chief Minister N Chandrababu Naidu have talked about moving on from ‘ease of doing business’ to ‘speed of doing business'.

While Naidu is known for his CEO like approach to running the state, and tales of how he helped lay the foundation for the IT sector in Hyderabad are often recounted by his supporters, there are questions over how would this be possible given how things often get stuck in the bureaucratic processes.

In addition to bureaucratic hurdles, others ask if the poor condition of finances and general decline in the state's investment climate after the tenure of former chief minister Jagan Mohan Reddy would not come in the way while incentivising businesses.

What helps here is that Naidu has had a good track record when it comes to ease of doing business, which is the foundation for speed of doing business, which is being promoted now.

Andhra had topped the statewise rankings for ease of doing business multiple times during his previous tenure and so it is likely that he can take the state back to that level. 

At the moment, it does not seem like empty talk.

He has made some swift moves such as identifying land parcels for an oil refinery and petrochemical complex by Bharat Petroleum Corporation Limited, which was promised under the Andhra Pradesh Reorganisation Act, inaugurated a number of projects in Sri City, and spoken with the Centre about seven airport projects in the state. 

The state definitely needs this approach. It does not have a capital even 10 years after its formation and has one of the highest debt to gross state domestic product (GSDP) ratios among large states at 33.3 per cent. 

Further, Naidu has set an ambitious target of achieving 15 per cent growth every year, which would require extraordinary efforts.

But there are challenges. The TDP’s ‘guarantees’ like free travel for women in buses and increased pensions are expected to cost the exchequer a lot (Reddy had estimated it to be Rs 1.21 lakh crore per year) and industries may face protests over issues like land acquisition.

It is also easy to be hitting the ground running when new in office, as the party would be riding on the goodwill generated during the elections and industries would be keen to see what the new government brings for them. But what matters is sustaining this in the long run, ie, keeping the investments coming and creating new jobs throughout the tenure.

While there is still a long way to go in his current term, Naidu’s fresh approach, even though he himself is not any less guilty of ‘khatakhat’ given the guarantees announced by his party, is indeed welcome at a time when parties are competing with each other to churn out doles while making economic growth secondary.

Also Read: Andhra CMO Consumed 1,000 Egg Puffs Daily? TDP Claims Jagan Mohan Reddy Spent Rs 3.62 Crore On Snacks In Five Years