‘You want masala, I want results’: Naidu’s jibe sparks Tamil Nadu-Andhra Pradesh investment war

Several reports of industrial investments moving from Tamil Nadu to Andhra Pradesh have emerged over the past two weeks. The battle for investment between the two states has long been a point of contention. This took a political turn after Andhra Pradesh Chief Minister N. Chandrababu Naidu delivered a pointed response to THE WEEK correspondent’s question about whether companies were choosing Andhra Pradesh over Tamil Nadu for their expansion plans.

At a press conference that lasted more than an hour after a two-day CII Partnership Summit in Visakhapatnam, Naidu did not mince words when asked about the competition between states, particularly Tamil Nadu and Andhra Pradesh, in attracting investments. To the question on how much political leadership mattered in retaining industries and what made Andhra Pradesh attractive to automobile and technology companies looking to expand from Tamil Nadu, Naidu took a dig with a smile, saying, “You want masala. I want results.”

Coming up with an elaborate reply on his skills in attracting investors and how he has continued to work since 1995 to bring investors into the state, Naidu defended Andhra Pradesh’s aggressive, incentive-driven investment strategy. However, he clarified that the final decision rested with investors. “All states are competing with each other, but investors have their own choice. I know how to attract investment,” he said.

Referring to the criticisms over Andhra Pradesh offering land at Re 1 per acre in Visakhapatnam, he said incentives were necessary in the initial stages of industrial development and could be progressively reduced as the state's industrial ecosystem strengthened. He also pointed to his experience of hosting eight of the 31 editions of the CII Partnership Summit, underlining his familiarity with investment promotion. 

Meanwhile, his reference to “masala” caught the attention of Tamil Nadu's ruling Tamilaga Vettri Kazhagam (TVK), which interpreted the remark as a swipe at the state's industrial credentials.

TVK spokesperson Sathya Kumar responded by defending Tamil Nadu's industrial ecosystem, arguing that its skilled workforce, entrepreneurial culture and manufacturing base were built over generations and could not be dismissed as political rhetoric. In a pointed message, Kumar challenged Andhra Pradesh to compete with Tamil Nadu on measurable outcomes rather than rhetoric.

“Let us compete on investments secured, projects implemented and jobs created,” he said, referring to Vijay's proposed participation in the World Economic Forum in Davos in January 2027. He also expressed confidence that Tamil Nadu would attract more investments under Vijay's leadership. 

The exchange comes amid competing claims over investments by South Korean automobile component manufacturers Hwashin and Seoyon. While the two companies have signed MoUs with Andhra Pradesh for new manufacturing facilities worth approximately Rs 1,614 crore in Anantapur, they have also conveyed investment plans worth Rs 1,370 crore in Tamil Nadu to expand their existing facilities over the next five years.

The distinction between new manufacturing facilities and expansion of existing plants has always been a political talking point. The Tamil Nadu BJP has argued that the Andhra Pradesh commitments represent fresh manufacturing capacity and employment opportunities, while the Tamil Nadu announcements largely involve expansion of existing operations.

The contest is not confined to the automobile sector. Brazilian electrical equipment manufacturer WEG has chosen Dharmapuri in Tamil Nadu for a proposed Rs 2,000 crore facility, while Andhra Pradesh had pitched Kuppam for the project.

Meanwhile, Kia India has announced plans for a two-billion-dollar investment in a new manufacturing unit in Andhra Pradesh, which is expected to generate around 12,000 jobs. For Naidu, attracting investments is central to Andhra Pradesh's economic revival and industrial ambitions. For Vijay's government, the challenge is to show that Tamil Nadu's established manufacturing ecosystem can keep attracting fresh investments even as neighbouring states aggressively compete for the same companies.

With Vijay's proposed Davos visit now part of the political conversation, the investment contest has taken on a new dimension. What began as a question about companies moving across state borders has now become a challenge to determine which government can turn investment announcements into factories, jobs and economic growth.

The real test, as the TVK spokesperson has suggested, will not be in the number of MoUs signed or the sharpness of political exchanges, but in the investments that actually materialise.