Naidu said investors want to know that government promises will be honoured even if political power changes. “Businesses which invest huge amount of capital are often worried about whether land allocations, financial incentives, approvals and other assurances given by a future administration will be kept by them,” the Chief Minister said.
He said political change should not be a reason to reverse legitimate investment commitments. The legislation would create a legal framework so investors cannot be arbitrarily forced into taking certain decisions and give longer term projects more stability.
Naidu said the government wanted to address these concerns directly and make Andhra Pradesh a dependable destination for domestic as well as international investors.
Direct Appeal to Piyush Goyal for National Legislation
In his speech the Chief Minister directly asked Piyush Goyal to take it forward at national level.
Naidu said AP would first introduce its own Investment Protection Act through the state legislative process. When the legislation is passed in Assembly it intends to send proposal to Centre.
He said he was confident Goyal could convince the Union government and Prime Minister Narendra Modi about the need for similar legislation across India.
Naidu said the Union Minister was capable of pushing the proposal forward and a national investment protection framework could significantly boost India’s economic prospects.
Escrow Mechanism and Protection of Investment Commitments
The proposed framework is supposed to deal with concerns about government incentives and investment agreements. One mechanism that’s being discussed in connection with the proposal is the use of escrow accounts so promised incentives are delivered.
Such arrangements could give businesses further assurance that government commitments won’t simply vanish when a new administration takes over.
Policy continuity is therefore a consideration for investors when making long-term financial decisions on large manufacturing facilities, infrastructure projects and industrial developments.
However, the details of legal provisions, enforcement mechanisms and eligibility conditions will become clear once the proposed legislation is introduced.
#WATCH | Visakhapatnam, Andhra Pradesh: At the CII Partnership Summit, Chief Minister Chandrababu Naidu says, “This is where I am making a request to the Union Minister regarding the Investment Protection Act. Every investor is investing, but many have serious concerns and doubts regarding regime changes, vindictive politics, and various other uncertainties. I am bringing a State Investment Protection Act. Once the Bill is passed at the State level, I will send it to you. I request you to take it forward to the Central Government and make efforts to introduce a similar Act at the national level. Once this is implemented, you will see a tremendous flow of investments into India. Global investors will come forward to invest in our country. Our Union Minister is highly intelligent, capable, and influential. I am confident that he can convince our Prime Minister, who has always been proactive in promoting investment and development. If we can make this happen, India will become unstoppable..." (Source: DIPR AP Govt)
— ANI (@ANI) November 12, 2026
CII Partnership Summit Highlights Andhra Pradesh's Investment Ambitions
The announcement was made during the 31st CII Partnership Summit in Visakhapatnam — an important platform to bring government representatives, business leaders and international investors together.
Andhra Pradesh has been aggressively seeking investments in manufacturing, infrastructure, technology, renewable energy and other sectors. The state government wants to attract large projects and create employment through industrial development.
By proposing an investment protection law Naidu is trying to address one of the biggest concerns with investing in regions where political leadership can change.
Can a National Investment Protection Act Help India?
Naidu says similar legislation at the national level could enhance India’s reputation as a stable investment destination.
A uniform legal framework could make it easier for businesses to plan projects more confidently and reduce concerns that political uncertainty will impact on long term commitments.
The proposal also supports India’s broader ambition to attract global capital, build manufacturing capacity and compete with other major investment destinations.
Whether the Union government takes this suggestion or not remains to be seen. But for now Andhra Pradesh’s proposed legislation could become a policy development to watch as the state works towards getting more domestic and international investments.
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