Andhra Pradesh CM woos US investors, 'Governator' Arnold promises a visit in November

'Governator' Arnold Schwarzenegger of California has joined a horde of US businessmen who have promised to visit Andhra Pradesh to explore investment opportunities following the Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy's visit to US.

Hollywood action hero Schwarzenegger will visit Hyderabad, capital of Andhra Pradesh, in November with a high–level business delegation to discuss mutual cooperation and investment opportunities in Andhra Pradesh, according to an official announcement following a meeting between Chief Minister Reddy and Schwarzenegger in Sacramento, California, May 10.

According to a statement from the Chief Minister's office, Reddy had a detailed discussion with Schwarzenegger on boosting trade ties between Andhra Pradesh and California in various sectors.

The meeting took place at the invitation of Schwarzenegger. On learning about Reddy's stay in California as part of his four–day visit to the US, he had invited him.

The California governor agreed to Reddy's request to explore all possibilities for investments in major sectors like IT, biotechnology, pharmaceuticals, food processing, BPO (business process outsourcing), micro–irrigation and water conservation.

"You seem to be very popular among the people of not only your state, but the country. You are a blend of a farmer but a modern administrator and astute politician. That is what is wanted in an agrarian economy, particularly in a developing democratic country like India. You are doing very well on the farm, water and irrigation front," said Schwarzenegger, praising Reddy.

The California governor said he has great admiration for India, a great liberal democratic country. "My wife, in fact, likes the spirituality of India," Schwarzenegger said, adding that he would love to visit India and its people.

Schwarzenegger said he was happy that many Indians do stay and work in his state. The chief minister pointed out that that every fourth Indian in California is from Andhra Pradesh.

Reddy explained to him the rapid strides made by Andhra Pradesh in IT, biotechnology, pharmaceuticals and food processing and briefed him about massive irrigation schemes and infrastructure projects including the upcoming Rs. 24.78 billion (nearly $610 million) international airport at Hyderabad.

Reddy, during his visit to San Francisco, met several investors, urging them to invest in his state. IT exports of the order of $4.5 billion were expected to be achieved this year from Andhra Pradesh, Reddy said, inviting business leaders, including CEOs of IT/semiconductor companies from San Francisco to invest in Andhra Pradesh.

Speaking highly of the performance in the IT services, software and BPO sectors in the state, Reddy said revenue of $3 billion in exports were achieved in 2005–06, registering a 51 percent growth rate as against the national average of 36 percent.

Though semiconductor consumption in India was only $3 billion, Reddy said that it would touch $45 billion by 2015. "We hope to build a $10–12 billion manufacturing base in the entire food chain of semi–conductors," he added.

Reddy also invited investments in pharmaceuticals, biotechnology, agro–processing, mineral–based industries, engineering, hi–tech manufacturing, textiles, leather goods, tourism, gems and jewelry.

The chief minister said 53 Special Economic Zones (SEZs) in the private and public sector were coming up in Andhra Pradesh.

"These SEZs are a combination of multi–product and product specific and provide very attractive incentives like tax holidays. I encourage you to avail of this opportunity lest you miss the boat," he told business leaders.

Highlighting the advantages of state capital Hyderabad, he pointed out that the World Bank report titled "Doing business in South Asia 2007" rated it as the most business friendly city in the country.

"We have most of the large enterprises from the US like IBM, Microsoft, Oracle, CA etc profiting from their decision to out locate to Andhra Pradesh," he said.

Reddy also urged the Stanford University to locate its offshore campus in Hyderabad and assured to provide all necessary infrastructure for it.

Chairman Board of Trustees, Stanford University, Burt McMurtry has agreed in principle to set up an institute in the State and assured to provide affordable healthcare to the people.