Jagan Reddy’s Mission: Why the AP CM Is Courting Investments Over Welfare

Jagan Mohan Reddy announced that his state has attracted Rs 13 lakh crore in investments.

Any conversation with Andhra Pradesh Chief Minister Jagan Mohan Reddy’s team of top officials would give one a list of welfare measures the YSR Congress Party (YSRCP) government has implemented in the state, ever since the party was voted to power in 2019. From housing schemes for the poor to granting fixed annual income to mothers of every Below Poverty Line (BPL) household, the list tends to be long.

However, on 3 and 4 March, the chief minister, popularly known by his first name – Jagan, ventured out to redefine Andhra Pradesh’s image and with it, his own. From being known for his welfare measures for a cash strapped state, the leader took a detour and announced – on a stage set for Indian and foreign billionaires – that his government has attracted investments of Rs 13 lakh crore.

Vouching for this whopping figure were the dignitaries on the dais for Andhra Pradesh’s Global Investors Submit, 2023 held at Visakhapatnam – a rich panel of top industrialists Mukesh Ambani, KM Birla, Karan Adani, Sajjan Jindal, Puneet Dalmia, and Arjun Oberoi, among others of similar investor credentials.

As the two-day-meet, which The Quint attended, came to an end, Reddy not just directly promised better days for AP but also implied that his election campaign for Assembly and Lok Sabha polls scheduled to be held in 2024, will hinge not just on welfare but also industrial development, income generation, and job creation.

Was this message by design?

Taking a Chandrababu Naidu Route?

In Andhra Pradesh, the politician known for his grand plans has always been Nara Chandrababu Naidu of Telugu Desam Party (TDP), which is the principal Opposition in the state. Naidu, popularly known by the name Babu, is credited with “developing Hyderabad,” which was part of undivided Andhra Pradesh till Telangana was formed in 2014.

Naidu is still known not just as the CM who built Hyderabad’s Hi-Tech city, currently teeming with IT firms and professionals, but also as the politician who had brought US President Bill Clinton to Hyderabad in 2000, right before the city’s IT boom.

Harping on these credentials, Naidu had promised a grand capital city – Amaravati – in AP, when he was elected to power in 2014. The plan never materialised.

With Jagan Reddy winning the next election in 2019, capital development in Amaravati came to a grinding halt. Reddy accused Naidu of insider trading which allowed Kamma (Naidu’s caste) community leaders to buy acres of land in the capital region even before the public announcement was made. While Reddy toyed with the idea of building three capitals at first, legal tangles has recently made him narrow down on Visakhapatnam, located far from Krishna district where Amaravati is situated, as the state capital. The investors summit was organised in this city.

In a way, the Global Investors Summit (GIS) has been Jagan Reddy’s way of showcasing a grand plan for Andhra Pradesh’s development, just one year before elections.

When The Quint asked one of his top officials whether this was a calculative move, he said, “Yes, it was. The investors lining up has shown that they have trust in us.” Reddy has been riding on “credibility and trust,” the aide added. While MoUs (Memorandum of Understandin) worth crores were signed, the investments may take time to be grounded. At the meet, Reddy himself had urged the investors to ground their plans as soon as possible and has set up a committee to look into the progress on this front.

But wasn’t welfare measures enough to propel him to power in the coming term? Is Jagan Mohan Reddy worried that he needs to have more achievements under his belt?

Hinging on a Progress Report

As far as political prospects go, Reddy’s YSRCP is comfortably on top of the game, his aide said. The party is sure that 51 percent of the voters who turned up to vote YSRCP to power are still with the party. TDP can get only 30 to 35 percent of votes, a party leader claimed. TDP has, however, been hosting massive rallies across the state with huge public turnout during the past few months. In response, the ruling party banned roadshows claiming that Naidu’s unplanned political parades killed over 10 persons in stampedes.

Was YSRCP rattled? Reddy has also had to face the heat from an upcoming politician whose name resonates with millions due to his screen credentials – Pawan Kalyan. Kalyan, who is a Kapu leader from Andhra Pradesh, and his Jana Sena Party have been campaigning against Reddy.

While Naidu had distanced himself from the Bharatiya Janata Party (BJP) in 2019 elections, he could forge an alliance with Pawan Kalyan and the BJP in the next one, it is predicted. “We are not worried about it. The BJP can bring just one percent of votes to the alliance if they team up with TDP,” Reddy’s aide said. The Congress, another possible ally of the TDP, is already reduced to naught in the state, as the Andhra public has been miffed with the grand old party for allowing formation of Telangana.

While the YSRCP predicts that there will be a vote difference of 18 to 20 percent between them and the TDP, it remains to be seen what Jagan Mohan Reddy can showcase as his achievements in the coming elections.

While his welfare schemes are going to take the cake, especially with women voters, his aim would be to erode the TDP’s vote share further and even eat into the base of Jana Sena Party. “Women are loyal voters of the YSRCP. We have special schemes where they are the direct beneficiaries. They will show their loyalty,” another member of Reddy’s team told The Quint. YSRCP is expected to retain even the Dalit votes in the state. While Reddy’s caste calculations could be spot on, with even OBCs swaying towards YSRCP, he is expected to be questioned over what he managed to build from scratch in his first term as chief minister.

Reddy, who inherited a revenue deficit state, has so far been claiming that TDP’s welfare measures which were aimed to sway votes had left the state is humongous debts, recovery from which could be tedious. However, this argument cannot win an election.

Reddy will have to project tangible achievements including investments, especially since the Special Category Status (which allows Central aide for backward states) has not yet been achieved.

The investors summit is what Reddy will be able to take to the people to urge them to opt for his party as they walk to the polling booth. “We hope this will help us in the way forward,” said one among Reddy’s aides. Job creation and capital inflow may tide Reddy over in another election.

In a way, even if the investments do not translate to actual jobs, Reddy will be able to claim he tried his best to bring the bounty back to the state. Presence of top industrialists at the meet has only helped towards this end. “It shows that there is a bright future for AP,” a YSRCP leader said. In this future, Jagan Reddy does see himself winning a second term in office, it is certain, from the mood at the bustling venue of the Global Investors Summit - 2023.