Andhra Pradesh plans new law to protect business investments

UPDATE - follow-up to Andhra Pradesh secures ₹9.88 lakh crore investment commitments at CII Partnership Summit in Vizag: The Andhra Pradesh government will bring in the Investment Protection Act with retrospective effect starting from 2024.

New Steps

Chief Minister N. Chandrababu Naidu announced the move after the valedictory of the 31st CII Partnership Summit. He said the proposed law will be passed in the next session of the Legislative Assembly. The state also plans to give business clearances in real time through self-certification.

Governance

Mr. Naidu stated that investors need safety guarantees after a change in government. He pointed to the disruption caused between 2019 and 2024. At the same time, the state wants to cut down rules that make doing business hard.

Context

State leaders often use special summits to bring in business money and create new jobs. Laws that apply to past dates are rare but are sometimes used to give strong legal safety to long-term projects.