During the BRS rule, Telangana set a benchmark, establishing itself as a magnet for investments across sectors. However, recent developments indicate a sharp reversal. Telangana’s reputation is diminishing under the Congress government, with the state now ranking at the bottom in attracting investments.
In the last six months, Telangana has only seen 212 projects materialize, representing just 4.13% of the total projects registered nationally. This translated to investments of merely Rs. 56,515.97 crores, amounting to 3.60% of the nation’s overall investments of Rs. 15,67,374.91 crores. Comparatively, states like Maharashtra, Odisha, Uttar Pradesh, and Rajasthan, which were previously lagging in industrial development, have outpaced Telangana in recent rankings.
Experts attribute this decline to certain controversial decisions by Chief Minister Revanth Reddy, which they say have eroded investor confidence. The most notable instance was the abrupt cancellation of the Pharma City project, a 16,000-acre hub that had nearly all the necessary approvals and was poised to attract substantial industrial growth. Industrialists expressed dismay at the government’s stance, given the extensive groundwork already laid.
Furthermore, sweeping demolitions by HYDRAA in Hyderabad have reportedly destabilized the real estate sector, creating an environment where potential investors feel uncertain. The delay in implementing a new MSME policy also stalled investment; after an eight-month wait, the policy was finally introduced last month but is criticized for being unfavorable to small and medium enterprises.