Industries Minister J Geetha Reddy has not commented about attracting new investments or setting up any industry in the recent months, though she entered the office with much fanfare and promised to engender more industries to the state.
On her first day, Geeta Reddy told media persons about a big unit that was going to be set up by a French industrialist. The fact remains that there has been no advancement in attracting investors to the state, despite having attended an NRIs' meet along with another cabinet minister Shankar Rao.
The extent of dwindling interest towards investing in the state can be gauged by the fact that the real estate market is in a freefall. Investors are not interested as there is no guarantee of tangible returns.
Thanks to the uncertainty, businesses including real estate have taken a beating since the Telangana agitation began. The sale and purchase of flats have declined in Hyderabad, partly because of a rise in the registration charges during the Rosaiah government.
The city, which was projected as a destination for all, is no longer an attractive harbour for real estate investors. The value of a square feet of land was around Rs. 4,000 in the past, and now it has slumped to Rs. 2,000. Despite these conditions, professional realtors present a bold picture of the market.
The fall in this trade has been attributed to the students' unrest and struggle for a separate state. In addition, the ineffective bureaucracy on one hand and the unstable government on the other lend credence to the fact that foreign investors are far from surety.
At one time, rentals in prime hubs were so high that they were out of bounds for most small-scale businesses. Now, 'to-let' boards are seen outside many prime commercial spaces. Most of the complexes which were full earlier present a gloomy picture now.
Global meltdown on one hand and lack of a strong government on the other seem to have cast a spell on investments in AP.