Andhra Pradesh Chief Minister N Chandrababu Naidu completed two years in office on Friday, but the coalition government led by him is still struggling to overcome challenges in reviving the state’s economy while implementing the welfare agenda.
The coalition government of Telugu Desam Party (TDP), Janasena Party and Bharatiya Janata Party (BJP) achieved a historic victory, winning 164 of the 175 assembly seats and 21 of the 25 Lok Sabha seats in Andhra Pradesh, leaving the YSR Congress Party (YSRCP) led by former chief minister YS Jagan Mohan Reddy reduced to only 11 assembly seats and four Lok Sabha seats.
As the alliance celebrates its second anniversary, the Chief Minister claimed to have achieved economic revival, infrastructure expansion and technology-driven governance, and said the government has brought the state from “destruction” to the path of “development”.
“We are continuously working to fulfill the hopes and aspirations of the people with welfare, development and good governance as our goals. The coalition government is making efforts for the welfare of “every section” including farmers, women, youth, employees and labourers,” Naidu said in a post on Twitter.
On the other hand, the opposition YSRCP launched statewide protests under the banner of “Two Years of Backstabbing”, alleging that Naidu has failed to fulfill election promises even after completing two years in office.
“After coming to power, the coalition government has betrayed people from all sections of the society by abandoning its commitments,” Jagan alleged.
Economic revival and investment promotion
The main focus of the Naidu administration is to restore investor confidence and establish Andhra Pradesh as a preferred investment destination. An official statement on Tuesday said the state has attracted good investment ₹There will be investment of Rs 23 lakh crore over the last two years in sectors including electronics, renewable energy, artificial intelligence, data centres, manufacturing and logistics, creating 2.3 million jobs.
It said 800 companies have shown interest in investing in the southern state in two years’ time. “The slogan ‘Andhra Pradesh is back’ resonates across the country even as 25.3% of the total FDI in the country was captured by the southern state,” the official statement said.
Major investments announced during this period included Google’s proposed US$15 billion AI data center in Visakhapatnam, considered one of the largest technology investments ever proposed in the state. Electronics giant LG Electronics also accelerated plans for ₹5,000 crore manufacturing facility in Sri City. Similarly, the ArcelorMittal Nippon Steel greenfield steel plant, the foundation stone of which was laid at Anakapalle last month, is expected to be the largest of its kind in the country.
The government also claimed to have recorded a gross state domestic product (GSDP) growth rate of 11.28% during the second quarter, outperforming the national average.
The government also secured a financial package ₹Rs 10,300 crore for the revival of Visakhapatnam Steel Plant and clearance for key projects like BPCL refinery and industrial corridors were facilitated.
Amravati returned to the center stage
Perhaps the most obvious achievement claimed by the Naidu government is the revival of Amaravati as the state capital city project. After years of uncertainty, capital construction work gained momentum after the Center gave statutory status to Amaravati by passing a bill in Parliament declaring it the sole capital of Andhra Pradesh.
The World Bank released US$207 million for capital development, while Germany’s KfW Bank agreed to provide ₹Loan of Rs 5,000 crore. HUDCO approved ₹11,000 crores and the Center provided grants ₹1,560 crores. The state government has adopted a self-financing and development model to accelerate construction.
Naidu has set a three-year target to complete major government infrastructure in the capital city. However, his ambitious plan to launch the second phase of the land pooling scheme covering 16,666 acres of land in seven villages has faced opposition from sections of farmers and criticism from the YSRCP, which has demanded justice for the land owners who participated in the first phase.
Amaravati is also central to Naidu’s vision of turning Andhra Pradesh into a global technology hub. The proposed Quantum Valley project aims to establish one of the world’s leading quantum computing ecosystems in the capital region.
Along with Amaravati, the government has focused on long-pending infrastructure projects across the state.
Another key priority of the administration, the Polavaram Irrigation Project has seen fresh momentum. The government aims to complete Phase-I by 2027 and considers the project important for irrigation, drinking water supply and power generation.
The alliance has also completed the Bhogapuram International Airport project and started several national highways, ring roads and proposed metro rail systems. Central government support has played a key role in funding these initiatives.
The Chief Minister declared 2026 as “the year of technology-driven decision making” and revived the Real Time Governance (RTG) system to monitor projects and public services. Artificial Intelligence is being integrated into grievance redressal systems, agricultural services and governance monitoring.
The administration has also launched futuristic projects like Drone City in Kurnool and Quantum Valley ecosystem in Amaravati as part of its broader digital transformation strategy.
welfare agenda
Along with pursuing industrial development, the government has also expanded welfare programs under its “Super Six” framework. NTR Bharosa Pension Scheme remains one of the largest social security initiatives in the state, benefiting around 6.3 million pensioners.
In the last one year, the government launched the Talliki Vandanam Scheme, under which financial assistance was given ₹Rs 15,000 is provided annually to families of school going children. more than this ₹Rs 10,000 crore has reportedly been paid to beneficiaries, which include more than 6.7 million students.
Farmer welfare has been addressed through Annadata Sukhibhav program ₹Rs 6,310 crore was directly transferred to about 4.6 million farmers. Under DIPAM-2, women get three free LPG cylinders annually.
The revival of Anna Canteen has been another major welfare initiative. More than 200 canteens have reopened across the state, serving subsidized food worth crores. Additional welfare measures include assistance for fishermen, auto drivers, honorarium for religious functionaries and assistance schemes for lawyers and other professional groups.
The Naidu administration launched one of the largest teacher recruitment drives in the history of the state through Mega DSC, filling approximately 16,000 vacancies. However, there were allegations of irregularities from the YSRCP in the program.
Political analyst Ramu Survajjula said that Naidu’s claims on the implementation of his welfare schemes do not reflect the reality, as people are largely disappointed.
“The four sections – farmers, youth, women and employees – who decide the electoral fate of any political party are unhappy with Naidu’s broken promises. This became evident during my interactions with these sections over the last few months,” Suravajjula said.
For example, the government had promised 2 million jobs but could not deliver even 20% so far, he alleged. “How many unemployed youth got monthly allowance ₹3,000 until employment is secured?” he asked.
He said people still have faith that Naidu will fulfill at least 50% of his election promises by the time his tenure is over.
the alliance will remain stable
The political stability of the alliance is strengthened by the complementary roles played by its three partners. Jana Sena chief and deputy CM Pawan Kalyan has focused on governance and rural development initiatives, especially village infrastructure, roads and water supply projects.
Although less politically visible during the election campaign, the Jana Sena has tried to build its organizational structure and governance credentials.
Within the TDP, Naidu has increasingly promoted his son and IT minister Nara Lokesh, appointing him as the party’s working president and signaling a gradual leadership change. Lokesh has emerged as a prominent figure in both governance and the party organisation.
The BJP, although not making any major electoral gains in the state, has expanded its organizational reach under its new state leadership and continues to leverage its role in the alliance.
The alliance has also benefited from its strong ties with the NDA government at the Centre, which has helped Andhra Pradesh secure adequate financial assistance and project approvals.
