Southern states bet on WEF Davos meet for investments, global ties

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India’s southern states are set to battle it out in Davos. Karnataka, Telangana and Tamil Nadu are gearing up for the World Economic Forum where they will compete for potential foreign investments.

Leaders and government officials from around the world will convene in Davos for the 54th annual WEF meeting from January 15 to 19. While Karnataka chief minister Siddaramaiah and Telangana CM Revanth Reddy will lead their respective delegations, the Tamil Nadu contingent will be headed by industries minister TRB Rajaa.

Kerala is not participating in the WEF summit, while Andhra Pradesh officials were unavailable for comment. Maharashtra CM Eknath Shinde will be present.

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"We have around 45 meetings lined up with world leaders and CEOs of various companies in Davos,” Karnataka minister for commerce & industries MB Patil told Moneycontrol. “We have our own pavilion there to showcase the opportunities, ecosystem, policies, and incentives in Karnataka.”

Tamil Nadu is making significant efforts, too.

“We will make a big pitch in Davos. Our talent pool is diverse and we are the most inclusive, equitable, and sustainable state. After Davos, we will be going to Europe, Australia, and other countries to attract investments,” Rajaa told Moneycontrol.

Tamil Nadu prospects

The two-day Tamil Nadu Global Investors Meet, which concluded on January 8, attracted proposed investments of Rs 6.64 lakh crore, with 2.7 prospective jobs in the state. Rajaa said 70 percent of these proposals are expected to convert into actual investments.

Ahead of the investor meeting, state CM Stalin led roadshows in Japan, Singapore, and the UAE to draw investments to the state.

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Tamil Nadu faces stiff competition from Karnataka, Telangana, Gujarat, Uttar Pradesh and Maharashtra in luring industry and investments. Both Tamil Nadu and Gujarat are trying to attract major investments from automobile firms.

Maharashtra was the top recipient of foreign direct investment equity in the country, attracting $61.9 billion during the period from October 2019 to September 2023, according to data on the website of the Department for Promotion of Industry and Internal Trade. Karnataka was in second place with $47.3 billion, Tamil Nadu fifth with $9.8 billion and Telangana seventh with $5.9 billion.

For the Telangana government and chief minister Reddy, who assumed office in December, Davos is an opportunity to showcase the state to a global audience.

“There is a new government now in Telangana. So the chief minister and industries minister will attend the summit in Davos,” Jayesh Ranjan, principal secretary of the Telangana department of information technology, electronics & communications, told Moneycontrol. “The government wants to convey the message about business development opportunities in Telangana and reassure that the new government will be equally progressive and business-friendly.”

However, the opposition Bharat Rashtra Samithi party has alleged that the cancellation of the Hyderabad E-Prix has already dented the global image of Hyderabad. The race was scheduled for February 10, but the organising agency (Formula E) cancelled the event, citing breach of contract by the government.

"The new government wants to reassure investors that Telangana remains an attractive and progressive destination,” Ranjan said. “With a new government, we aim to be even better and more competitive."

Vision groups

Patil said Karnataka has formed nine vision groups chaired by the CM for the aerospace and defence, machine tools, electronics system design and manufacturing, pharmaceuticals, core manufacturing, automotive/electric vehicles, industry 5.0, textiles, and green energy sectors.

"The state’s share in India’s IT exports is 40 percent and it holds a 65 percent share in aerospace and defence manufacturing. We need to capitalise on that,” Patil said. “The Union government should also facilitate the production-linked incentive scheme so that more investors prefer India.”

After a 12-day visit to the US, Patil and IT-biotechnology minister Priyank Kharge said on October 12 that the Karnataka government expects 'potential expression of interest' from US companies to invest $3 billion (Rs 25,000 crore) in the state.

Also, read: Karnataka sees potential $3 billion investment from US companies

Karnataka is working to convert some of these investments to reality and attract more investments to smaller cities such as Mysuru, Mangaluru, Tumakuru, Hubballi, Dharwad, Shivamogga, Belagavi, Mandya, Chamrajnagar, Udupi, Manipal and Kalaburagi.

Union IT and railways minister Ashwini Vaishnaw, petroleum and natural gas minister Hardeep Singh Puri, and women and child development minister Smriti Irani will attend the Davos summit. About 2,800 global leaders, including over 60 heads of states and governments, are expected to participate in the five-day gathering in the Swiss ski resort town.

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