"There's literally no work," Khanter said, citing the new nationwide goods and services tax and the decline in his state's competitiveness as others regions lure investment. "Nicknamed the " Detroit of India " for its auto industry , Chennai, the capital of Tamil Nadu, is at risk of taking on another characteristic of the American city -- the demise of a manufacturing powerhouse. "Andhra Pradesh and the newly-formed state of Telangana are among the fiercest competitors for new industry. "Planned investments in Tamil Nadu still totaled $5.7 billion since 2015, with a recent uptick "despite ongoing political uncertainties," according to global real estate firm Jones Lang LaSalle Inc.Southern states -- Tamil Nadu, Andhra Pradesh, Telangana, Kerala and Karnataka -- have long enjoyed better social indicators than poor northern states such as Bihar or Uttar Pradesh. "You need to move up the value chain," said Jayan Jose Thomas, an economist serving on Kerala's planning board.

Source: Economic Times December 06, 2017 01:30 UTC