Andhra CM N Chandrababu Naidu
Credit: X/@JaiTDP
Visakhapatnam: Andhra Pradesh Chief Minister N Chandrababu Naidu has asserted that competition among states is both inevitable and essential for the country’s economic growth, especially in the context of recent high-profile investment shifts.
Speaking to reporters in Visakhapatnam on Saturday, Naidu responded to a question on migration of industries to Andhra from other states like South Korean company Hwaseung deciding to establish its $150 million shoe manufacturing unit in Andhra Pradesh rather than Tamil Nadu, and heated discussions over incentives offered for the $15 billion Google data centre project which had initially drawn sharp reactions from Karnataka.
Naidu unequivocally said that cooperative federalism thrives when states challenge one another, ultimately benefiting citizens. “Competition is inevitable; only when states compete do people benefit. If everyone becomes complacent, how will investments grow?” Naidu asked, making it clear that he welcomes healthy rivalry, even within his own government. He also praised the Prime Minister for delivering national stability and driving economic reforms, adding, “Some states may feel the heat, but that is natural in a competitive environment. If other states perform better, investors will go there; if we do better, they will come to us. I always encourage competition, even my ministers should never be complacent,” he said.
Hwaseung’s decision to move its proposed Rs 1,720 crore non-leather footwear facility from Tamil Nadu to Andhra Pradesh is set to generate 20,000 direct jobs. The new plant will be established in Kuppam, Naidu’s assembly constituency, with 100 acres allotted across two villages. The facility aims to manufacture approximately 20 million pairs of sports shoes annually, primarily for export.
Originally, Hwaseung had signed an MoU with Tamil Nadu in August 2025 to set up the plant in Tuticorin. Political debate ensued after Andhra Pradesh secured the deal, with reports highlighting the attractive incentives offered by Andhra Pradesh such as land on long-term lease as a decisive factor in the company’s move.
The development has triggered strong reactions from leaders of Tami Nadu states. K Annamalai, former president of BJP’s Tamil Nadu unit, criticized the DMK government. “In less than three months, Hwaseung has now decided to take this investment to Andhra Pradesh. At a time when other states are moving swiftly to attract global manufacturing, Tamil Nadu is losing ground due to complacency and administrative apathy. From being a land of opportunities, DMK has transformed TN into a land of missed opportunities,” Annamalai posted on social media.
Tamil Nadu’s industries minister, Dr TRB Rajaa, countered these remarks, defending the state’s approach to investment promotion. He argued that incentives and investment allocation must balance regional needs, sectoral priorities, job creation, and land value. Rajaa stated,
“We will never join a race to the bottom with unrealistic incentives. Our focus remains on high-value, skill-based jobs for Tamil Nadu residents, reflecting our strengths as India’s most industrialized and trustworthy manufacturing powerhouse. We believe in strategic, balanced growth rather than mere numbers.”
Rajaa added that further investments in Tamil Nadu are forthcoming and that the government’s commitment to its workforce and economic development remains unwavering.