The 2025 World Economic Forum (WEF) in Davos showcased a stellar performance by India’s Telugu-speaking states, Telangana and Andhra Pradesh, which emerged as frontrunners in attracting global investments. Competing with eight other Indian states, these two accounted for a significant share of the $95 billion investment commitments India secured at the summit.
Telangana, under the young and dynamic Chief Minister A. Revanth Reddy, supported by IT Minister Sridhar Babu, solidified its position as a Technological Trailblazer. The state’s delegation secured $32 billion in investments, the highest among Indian states, by showcasing its strengths in technology, innovation, and ease of doing business. Key sectors driving Telangana’s success included IT, renewable energy, and pharmaceuticals.
Telangana capitalized on its reputation as the “Pharma Capital of India”, drawing commitments from global giants such as Pfizer and Novartis. Additionally, the state inked deals worth $8 billion in the renewable energy sector, aiming to boost solar and wind energy capacities. Hyderabad’s flourishing startup ecosystem also attracted significant investments in technology-driven areas like AI and IoT.
Meanwhile, Andhra Pradesh, led by Chief Minister Nara Chandrababu Naidu, secured $28 billion in investments. The state’s emphasis on infrastructure development and its strategic coastal location proved to be major attractions for investors. Andhra Pradesh leveraged its extensive coastline, signing $10 billion worth of deals in port modernization and logistics. It also secured $7 billion for expanding wind and solar energy projects, while its agri-tech innovations drew interest from multinational corporations looking to modernize agriculture.
In contrast, the other eight Indian states collectively garnered $35 billion in investments, significantly trailing the Telugu states. Highlights included:
- Maharashtra: Focused on manufacturing but secured only $8 billion, falling short of expectations.
- Gujarat: A traditional investment hub but managed $7 billion amid stiff competition.
- Karnataka: Highlighted its IT sector and attracted $6 billion.
The remaining states—Tamil Nadu, Uttar Pradesh, Rajasthan, West Bengal, and Madhya Pradesh—secured $14 billion, reflecting regional disparities and the need for more robust strategies.
Some key factors for the Telugu states’ success;
- Policy Clarity: Investor-friendly policies and single-window clearance systems minimized bureaucratic hurdles.
- Sectoral Focus: Targeted pitches to high-growth industries like technology, pharmaceuticals, and renewable energy.
- Global Outreach: Aggressive promotion and direct engagement with international stakeholders.
Telangana and Andhra Pradesh’s success at Davos underscores their roles as investment powerhouses and sets a template for other Indian states. By leveraging their unique strengths and fostering innovation, they not only bolstered their economies but also elevated India’s global economic standing.
