A reporter’s question about why companies from Tamil Nadu were looking to expand in Andhra Pradesh has turned into a challenge over which state can attract more investment and create more jobs.

The question came at the CII Partnership Summit in Visakhapatnam, where the reporter also asked how much political leadership mattered in retaining industries. “You want masala. I want results,” Andhra Pradesh Chief Minister N Chandrababu Naidu told the reporter.

Tamilaga Vettri Kazhagam (TVK) spokesperson Sathya Kumar took the reply as a dig at Tamil Nadu. He challenged Andhra Pradesh to compare the two states’ records on investments secured, projects implemented and jobs created.

WHAT ANDHRA PRADESH CM SAID

Naidu said investors were free to decide where to put their money as states competed to attract them. “I know how to attract investment,” he said, pointing out that he had hosted eight of the 31 editions of the CII Partnership Summit. He also spoke about cooperation among southern states.

Naidu defended offering incentives to attract companies, citing criticism of an offer of land at one rupee an acre in Visakhapatnam.

He said the state offered more incentives initially and scaled them back as the industrial base grew and it became easier to attract other companies.

TVK SETS A DAVOS CHALLENGE

Reacting to Naidu's remarks, Kumar defended Tamil Nadu’s industrial record in a post on X. “Do not underestimate the people of Tamil Nadu,” he wrote.

Kumar pushed back on the “masala” remark, saying generations of skilled workers and entrepreneurs had built Tamil Nadu’s industrial strength.

Kumar also took a swipe at Naidu’s alliance with the BJP and invoked federalism, state autonomy and Tamil identity. He said Chief Minister Vijay’s government was determined to attract investment and create quality jobs.

Pointing to Vijay’s expected participation in the World Economic Forum in Davos in January 2027, Kumar wrote, “Let us compete on investments secured, projects implemented and jobs created.”

He said he was confident Tamil Nadu could attract more investment than Andhra Pradesh under the TVK chief.

THE RACE FOR INVESTMENTS

The two states are already vying for some of the same projects. This week, Brazilian electrical equipment maker WEG chose Dharmapuri in Tamil Nadu for a proposed Rs 2,000 crore manufacturing facility. Andhra Pradesh had pitched Kuppam for the project, which is expected to create about 3,000 jobs.

Tamil Nadu, India’s second-largest state economy, is also looking to build on its auto manufacturing base. The state says South Korean component suppliers Hwashin and Seoyon have made fresh investment commitments worth a combined Rs 1,370 crore over five years.

Naidu helped develop Hyderabad into an IT hub as Chief Minister of undivided Andhra Pradesh. Attracting investment to Andhra Pradesh has been a priority for him since the 2014 bifurcation, when Hyderabad became part of Telangana.

At the Visakhapatnam summit, Kia India announced plans to invest US$2 billion in a new manufacturing unit in Andhra Pradesh. The project is expected to create about 12,000 jobs.

- Ends