Andhra Pradesh Proposes Investment Protection Act; ₹9.89 Lakh Crore in MoUs Planned

The news

Andhra Pradesh Chief Minister N. Chandrababu Naidu announced on Thursday that the state will introduce an Investment Protection Act to improve ease of doing business. Speaking at the inaugural session of the 31st CII Partnership Summit 2026 in Visakhapatnam, Naidu said 303 memoranda of understanding involving proposed investments of ₹9.89 lakh crore would be signed at the summit. With these, the total value of investment proposals attracted by the state since June 2024 would reach ₹32.49 lakh crore.

Naidu outlined ambitious sectoral targets: 160 GW of renewable energy, annual electronics production of ₹4.20 lakh crore, and an aerospace and defence sector target of ₹50,000 crore. He said Asia’s first 120-qubit quantum computer in Amaravati would be inaugurated on February 3, 2027, and the Google Data Centre in Visakhapatnam on August 15, 2028. The Chief Minister cited speedy clearances as a key factor, pointing to the Kia car manufacturing plant and the Advanced Medium Combat Aircraft project in Sri Sathya Sai district as examples. He added that LG Electronics was preparing to commence production in Sri City within 19 months.

What is the legal basis for state-level investment protection laws in India?

State governments in India derive their authority to legislate on industrial development and investment facilitation from Entry 24 of the State List in the Seventh Schedule of the Constitution, which covers industries subject to the provisions of Entry 52 of the Union List. The central law governing foreign investment is the Foreign Exchange Management Act, 1999, which replaced the earlier Foreign Exchange Regulation Act of 1973. The Department for Promotion of Industry and Internal Trade (DPIIT), originally established in 1995, formulates the consolidated FDI policy circular that sets the framework within which states compete for investments. Several states have enacted their own facilitation acts, such as the Gujarat Industrial Development Act, 1962, and the Maharashtra Industrial Development Act, 1961, which provide statutory backing for industrial infrastructure development. The Supreme Court, in Rustom Cavasjee Cooper v. Union of India (1970), upheld the right to carry on business as a fundamental right under Article 19(1)(g), subject to reasonable restrictions, which forms the constitutional backdrop for any investment protection legislation.

What is the Swarna Andhra Vision 2047?

The state government's investment strategy is linked to the Swarna Andhra Vision 2047, a long-term development plan. The proposed Investment Protection Act is presented as an ease-of-doing-business measure. Investment proposals and MoUs represent planned commitments, not completed projects or realised investment.

What are the announced technology and infrastructure milestones?

The state identified six operational ports and its transport network as logistics advantages. Water availability for agriculture, drinking and industry is linked to river interlinking plans, including the Polavaram project. The announced technology milestones are a 120-qubit quantum computer at Amaravati in 2027 and a Google data centre at Visakhapatnam in 2028.

What is the distinction between targets and outcomes?

The exam-relevant distinction is between announced targets, proposed investments and completed outcomes. Progress can be assessed through enactment of the proposed law, conversion of MoUs into projects, timely infrastructure delivery and achievement of sectoral targets. Water availability, clearances and connectivity are important complementary requirements for industrial expansion.