The psychology of investment: How Chandrababu Naidu attracts global giants

When it comes to how a leader attracts investments for a state, we are often offered platitudes about “ease of doing business”, “tax incentives” and “competitive land packages”. But the truth is more subtle — it lies in the personality, vision and psychological
presence of the leader himself. In this respect, Nara Chandrababu Naidu (hereafter “Naidu garu”) of Andhra Pradesh stands out as a textbook case. At 75 (“young, not old”, as one might say), he is driving other states to envy with the announcement of a massive
investment in his state: about US $15 billion (≈ ₹87,520 crore) over five years (2026‑2030) by Google in AI and cloud infrastructure.
In this psycho‑analytical look, I draw upon my personal experience of working as his Personal Assistant in 1990 (when TDP was in opposition) and attempt to decode why companies flock to invest, how Naidu Garu manages to convince them, and what this means for his state’s transformation.
The leader as investment magnet: Psychological and strategic levers
From a psychological perspective, what do investment‑hungry companies really seek in a leader? I would summarise it as follows:
Visionary confidence – the sense that this leader is not merely reacting, but positioning the state for the future.
Credibility built by track‑record – a history of turning promise into delivery enhances trust.
Personal agency and decisiveness – the investor feels they’re dealing with someone who can make things happen, not just bureaucracy.
Narrative appeal – the leader tells a compelling story that resonates with the investor’s ambition (for growth, global scale, innovation). Symbiosis of promise and structure – beyond words there are the systems, incentives and ecosystem that deliver. Naidu garu ticks all these boxes. Let us unpack how.
Naidu’s personal imprint and investment magnetism
Back in 1990, I watched Naidu garu in his early 40s leading the opposition in the Assembly after the surprise 1989 loss of the TDP. Even at that stage, his speed of thinking, clarity of strategic direction, and fearlessness in debate impressed me deeply. He did not look like a defeated opposition leader; he looked like someone poised for future dominance. The bravado was real, but grounded in competence.
Fast‑forward to today. In October 2025, Google’s announcement of a $15 billion investment in AP’s Visakhapatnam (to build a gigawatt‑scale AI hub, subsea cable gateway, fiber network etc) emerged as the single largest FDI commitment in India so far.
But beneath the headline lies personal style and structural preparation:
- Naidu garu’s technologist mindset is well known (from his earlier regime 1995 in united Andhra Pradesh) when he brought in Microsoft and made Hyderabad an IT hub.
- He combines political agility (to cut deals, get clearances) with strategic narrative (showing the state is “future‑ready”).
- He sends a signal to investors: Here is a leader who understands your language (technology, global scale, AI), and has the wherewithal to deliver.
- The continuity from past to present is powerful: “Yes, he did Microsoft in 1995 when he was young; now he is doing Google in 2025” — a meta‑narrative of consistency and staying ahead of the curve.
I recall in 1990 how I sensed his inner drive: even as opposition he would monitor developments, draft responses, coordinate the team, articulate strategy. I knew then: this man is thinking ten steps ahead. That experience informs my current assessment: his behaviour hasn’t changed in essence, only the scale has. And investors see this.
Why companies love to invest when the leader has this aura
From the corporate side, locating a large scale investment in a state involves risk. They look at the regulatory, infrastructural, power, land, logistics, skill‑pool risks. But beyond that they look at leadership–state alignment. A leader who appears “on board” gives
comfort: “if we commit here, the state will support us, not thwart us.”
Naidu garu projects exactly that. He signals: I’m aligned with your global ambition; I’ll unlock the ecosystem; I’ll make this work. The Google deal is telling: it is not just about incentives; it is about building a gigawatt‑scale AI hub, subsea connectivity, fibre network, clean energy linkage. It tells companies: We are serious.
Moreover, his track record (e.g., early Microsoft in Hyderabad) lowers the credibility gap. The psychological reassurance: “If he did it before, he can do it again.” And his ability to nudge neighbours, handle critics, and drive competitive positioning shows he is comfortable in the limelight and ready to fight for his state.
Thus the leader becomes the brand of the investment destination. People invest in states, yes — but states with the right leader become investment magnets.
(The writer is former OSD to former Union Civil Aviation Minister)


















