It is understandable that business is deeply worried by the move to form a separate state of Telangana since there will be considerable uncertainty over the state’s policy. Business likes certainty and this is the first casualty of the move. Of course, it is just as likely the state’s new government will do its best to reassure investors so that the setback in sentiment could turn out to be temporary.
In the immediate short run, however, the government of undivided Andhra Pradesh will have to do its best to reassure investors as well. This is important because while it will take years for the state to get formed — given the declining fortunes of K Chandrasekhar Rao in the Andhra assembly, it will be difficult to get the assembly to pass the necessary legislation — investors will start reacting immediately.
V Rao, Noida
