BANGALORE: Violence is a major deterrent for many, more so when you have a business to run.If the fragile political climate in the Andhra Pradesh spills blood on the streets, Hyderabad’s loss may become the gain of neighbouring states, as companies in the process of decision-making are likely to have serious second thoughts about AP in general and Hyderabad in particular.Industry-watchers believe that while short-term political turmoil, which is not new to Andhra Pradesh or Karnataka, may not spell doom for the industries in any state, safety and logistical issues resulting from turmoil could hamper the operations.“Before making an investment, besides other things like the state’s industrial policy, safety of its employees and prospect of running uninterrupted operations also play a major role.The Telangana issue per se is yet to have its fall out.Generally, people would not risk investment in a violent place, for instance Jammu and Kashmir or Assam.There are competitive states around. Tamil Nadu is now very industries-friendly, so is Gujarat,” FKCCI president J Crasta said.On December 11, consumer healthcare company Glaxo Smithkline had to temporarily suspend its operations owing to safety concerns.In another incident, protesters attacked a branch of HSBC bank in the coastal city of Vishakapatnam.The chairman of CII, Karnataka, T Parabhraman feels that Hyderabad, which has a lot of thrust on education in the past apart from a strong industrial culture, has very similar roots like Bangalore.“The core engineering strength of Hyderabad is its primary advantage,” he added.“Whether Hyderabad is a part of Telangana or Andhra, it would not matter.However, foreign companies think more from a safety perspective and the lifestyle the city has to offer,” he said.Meanwhile, Karnataka with its new industrial policies, is aggressively pursuing investments. The state has cleared 46 projects, which are expected to invest Rs 1,086 crore, in its high level committee meeting held in October.In its 54th high level clearance committee meeting, it discussed on giving clearance to proposals from 55 new projects, including projects from about five Hyderabad- based companies.
SOURCE-http://www.expressbuzz.com
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=9782105e-f170-4db8-8a43-59d37ef6e8e3)
0 Responses to Telangana is making many business-friendly