With N Chandrababu Naidu ousted as the CEO of Andhra Pradesh, industry expects the state to change its focus from information technology to manufacturing, especially in the small and medium scale sector.
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"The Congress will be on a better wicket for bringing in more investment in the manufacturing sector, which has been sluggish in the last couple of years," Tarun Das, director-general of the Confederation of Indian Industry, told Business Standard, adding: "With the Congress back in power after nine years, the manufacturing sector will get revived."
"SMEs will be brought to the forefront with the Congress focusing more on the basic needs of the rural regions," Federation of Indian Chambers of Commerce and Industry Secretary-General Amit Mitra said.
During the nine-year Telugu Desam rule, Naidu had positioned the state as a hub for information technology companies on the lines of neighbouring Karnataka.
Nasscom President Kiran Karnik, however, said the change in the government would not impact the information technology industry.
Within hours of Naidu tendering his resignation, a wave of optimism swept through the old economy players in Hyderabad. SRB Ramesh Chandra, joint managing director of Coromandel Cements, said: "The need for a concrete super highway between Hyderabad and Vijayawada on the lines of Mumbai-Pune highway has long been felt. We expect the new government to take it up."
Pointing out the high rate of sickness among the mini cement units in Andhra Pradesh, Ramesh Chandra, the former president of All India Mini Cement Manufacturers Association, said Congress had earlier extended sales tax relief up to 50 per cent for mini cement units during 1991-94.
The mini units strongly hope that the party would extend similar measures this time as well.
