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Tamil Nadu's Investment Crisis: Why Korean Firm Shifted to Andhra Pradesh

A major South Korean company has decided to move its massive footwear project from Tamil Nadu to Andhra Pradesh. Opposition leaders are furious about losing this investment that would have created thousands of jobs. They're blaming the current state government for failing to maintain a business-friendly environment. This situation highlights growing concerns about Tamil Nadu's ability to attract and retain international companies.

Key Points: EPS Annamalai Slam DMK After Korean Firm Leaves Tamil Nadu

  • Korean footwear manufacturer Wasoong International shifts Rs 1,720-crore project to Andhra Pradesh
  • EPS questions benefits of CM Stalin's foreign investment tours
  • Annamalai blames government negligence for losing 20,000 jobs
  • Opposition cites law and order issues affecting industrial confidence
2 min read

EPS, Annamalai slam TN govt after South Korean firm shifts to Andhra Pradesh

Opposition leaders attack DMK government as Wasoong International relocates Rs 1,720-crore project to Andhra Pradesh, costing Tamil Nadu 20,000 jobs.

"After four years of these colourful shows and investor conferences, what benefit has Tamil Nadu received? - Edappadi K. Palaniswami"

Chennai, Nov 15

The AIADMK and BJP on Saturday launched a fierce attack on the DMK government after South Korean footwear manufacturer Wasoong International decided to relocate its proposed Rs 1,720-crore project from Tamil Nadu to Andhra Pradesh — a move that opposition leaders say has cost the state nearly 20,000 direct jobs.

AIADMK general secretary Edappadi K. Palaniswami (EPS) was the first to lash out, questioning what Tamil Nadu had gained from Chief Minister M.K. Stalin's repeated foreign tours and investment summits. "The Korean company that once announced it would set up operations in Tamil Nadu has now shifted its project to Andhra Pradesh. After four years of these colourful shows and investor conferences, what benefit has Tamil Nadu received?" he asked.

EPS said companies that had earlier promised investments were now withdrawing, pointing to deeper issues in governance. He accused the government of allowing law and order to deteriorate, failing to ensure women's safety, and being mired in corruption allegations -- all of which, he said, have shaken industrial confidence.

"How can industries come to a state run by rulers who prioritise publicity over performance? The youth who believed new industries would bring jobs have been badly let down by this incompetent DMK government," Palaniswami charged.

He added that industries that have exited the state would return once an AIADMK government is formed in 2026.

Following EPS's criticism, former Tamil Nadu BJP president K. Annamalai also blamed the DMK government for allowing a major investment opportunity to slip away. Recalling that the Industries Minister had proudly announced Wasoong's decision to set up a large-scale footwear manufacturing facility generating 20,000 jobs, Annamalai said the project's relocation within just three months reflected poorly on the state administration.

He accused the Chief Minister and the Industries Minister of being "in deep slumber" while neighbouring states aggressively attracted global manufacturing. "Other states are moving swiftly, but Tamil Nadu is losing its position due to negligence and misgovernance. International companies are leaving because they don't have confidence in this government," he said.

Annamalai alleged that Tamil Nadu, once seen as a land of opportunities, was now becoming a land of "missed opportunities" under the DMK rule, adding that foreign investors were opting for other states due to the absence of a positive outlook towards the current administration.

- IANS

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Reader Comments

P
Priya S
While I agree this investment loss is concerning, we should also acknowledge that Tamil Nadu still attracts many investments. Let's not paint the entire state as investor-unfriendly based on one case. The government should learn from this and improve.
M
Meera T
EPS and Annamalai are absolutely right! Tamil Nadu was once the manufacturing hub of India. Now we're losing to Andhra Pradesh? Shameful! Our CM should stop globe-trotting and focus on retaining existing industries first. 🙏
A
Arjun K
As someone who works in manufacturing, I can confirm that the business environment has become challenging. Too much red tape and policy uncertainty. Companies need stability to invest long-term. Hope the government takes this seriously.
S
Sarah B
Living in Chennai for 5 years now, I've seen both good and bad. While this investment loss is unfortunate, let's not forget Tamil Nadu still has strong infrastructure and skilled workforce. The government should address the specific reasons why Wasoong left.
K
Karthik V
Wake up call for TN government! Neighbouring states are offering better incentives and faster approvals. We can't rest on past laurels. Need urgent reforms to make Tamil Nadu industry-friendly again. Jobs are moving away while our leaders sleep! 😔

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