As Andhra Pradesh chief minister N Chandrababu Naidu completes two years in office on Friday, the coalition government under his leadership is still struggling to overcome the challenges in reviving the state’s economy while implementing the welfare agenda.2 years in power: Naidu-led Andhra govt juggles growth, welfareThe coalition government comprising Telugu Desam Party (TDP), JanaSena Party and the Bharatiya Janata Party (BJP), secured a historic victory, winning 164 of the 175 assembly seats and 21 of the 25 Lok Sabha seats in Andhra Pradesh, reducing the YSR Congress Party (YSRCP) led by former chief minister YS Jagan Mohan Reddy to just 11 assembly seats and four Lok Sabha seats.As the coalition marks its second anniversary, the chief minister has claimed to have achieved an economic revival, infrastructure expansion and technology-driven governance, and said the government had brought the state from “destruction” to the path of “development.”“We are working continuously to fulfil people’s hopes and aspirations, with welfare, development, and good governance as our goals. The coalition government is striving for the welfare of “every section,” including farmers, women, youth, employees, and labourers,” Naidu said in a post on X.On the other hand, the opposition YSRCP launched statewide protests under the banner “Two Years of Backstabbing”, alleging that Naidu had failed to deliver on election promises even after completing two years in office.“The coalition government has deceived people from all sections of society by abandoning its commitments after coming to power,” Jagan alleged.Economic revival and investment pushA key focus of the Naidu administration has been restoring investor confidence and positioning Andhra Pradesh as a preferred investment destination. An official statement on Tuesday said the state had attracted investments worth ₹23 lakh crore in the past two years across sectors including electronics, renewable energy, artificial intelligence, data centres, manufacturing and logistics, which will lead to the creation of 2.3 million jobs.It said in two years’ time, 800 companies have evinced interest to invest in the southern state. “The catchphrase that ‘Andhra Pradesh is Back’ is reverberating across the country, even as 25.3% of all FDI in the country was cornered by the southern state,” the official statement said.Among the marquee investments announced during the period was Google’s proposed US$15-billion AI Data Centre in Visakhapatnam, considered one of the largest technology investments ever proposed in the state. Electronics giant LG Electronics also accelerated plans for a ₹5,000-crore manufacturing facility at Sri City. Similarly, ArcelorMittal Nippon Steel greenfield steel plant, foundation for which was laid at Anakapalli last month, is expected to be the largest of its kind in the country.The government also claimed to have recorded a Gross State Domestic Product (GSDP) growth rate of 11.28% during the second quarter, outperforming the national average.The government also secured a financial package exceeding ₹10,300 crore for the revival of the Visakhapatnam Steel Plant and facilitated approvals for major projects such as the BPCL refinery and industrial corridors.Amaravati returns to centre stagePerhaps the most visible achievement claimed by the Naidu government is the revival of Amaravati as the state’s capital city project. After years of uncertainty, capital construction works gained momentum following the Centre giving it a statutory status by passing a bill in Parliament declaring Amaravati as the sole capital of Andhra Pradesh.The World Bank released US$207 million for capital development, while Germany’s KfW Bank agreed to provide a ₹5,000-crore loan. HUDCO sanctioned ₹11,000 crore and the Centre provided grants worth ₹1,560 crore. The state government has adopted self-financing and development models to accelerate construction.Naidu has set a three-year target for completing major government infrastructure in the capital city. However, his ambitious plan of taking up second phase of the Land Pooling Scheme covering 16,666 acres across seven villages, faced resistance from sections of farmers and criticism from the YSRCP, which has demanded justice for landowners who participated in the first phase.Amaravati is also central to Naidu’s vision of transforming Andhra Pradesh into a global technology hub. The proposed Quantum Valley project aims to establish one of the world’s leading quantum computing ecosystems in the capital region.Alongside Amaravati, the government has focused on long-pending infrastructure projects across the state.The Polavaram irrigation project, another flagship priority of the administration, has seen renewed momentum. The government aims to complete Phase-I by 2027 and views the project as critical for irrigation, drinking water supply and power generation.The coalition has also completed the Bhogapuram International Airport project and taken up several national highways, ring roads and proposed metro rail systems. The Union government’s support has played a significant role in funding these initiatives.The chief minister declared 2026 as the “Technology-Driven Decision-Making Year” and revived the Real Time Governance (RTG) system to monitor projects and public services. Artificial Intelligence is being integrated into grievance redressal systems, agriculture services and governance monitoring.The administration has also initiated futuristic projects such as Drone City in Kurnool and the Quantum Valley ecosystem in Amaravati as part of its broader digital transformation strategy.Welfare agendaWhile pursuing industrial growth, the government has simultaneously expanded welfare programmes under its “Super Six” framework. The NTR Bharosa pension scheme continues to be one of the largest social security initiatives in the state, benefiting around 6.3 million pensioners.In the last one year, the government rolled out the Talliki Vandanam scheme, under which financial assistance of ₹15,000 is provided annually to families of school-going children. More than ₹10,000 crore has reportedly been credited to beneficiaries, covering over 6.7 million students.Farmer welfare has been addressed through the Annadata Sukhibhava programme, with ₹6,310 crore transferred directly to around 4.6 million farmers. Under Deepam-2, women receive three free LPG cylinders annually.The revival of Anna Canteens has been another major welfare initiative. More than 200 canteens have been reopened across the state, serving crores of subsidised meals. Additional welfare measures include assistance for fishermen, auto drivers, honorariums for religious functionaries, and support schemes for lawyers and other occupational groups.The Naidu administration launched one of the largest teacher recruitment drives in the state’s history through the Mega DSC, filling nearly 16,000 vacancies. The programme, however, drew allegations of irregularities from the YSRCP.Political analyst Ramu Suravajjula said Naidu’s claims on implementation of his welfare schemes do not reflect the reality, as people are largely disappointed.“The four sections - farmers, youngsters, women and employees - that decide the electoral fate of any political party seem to be unhappy with Naidu’s broken promises. This was evident during my interaction with these sections in the last couple of months,” Suravajjula said.For example, the government promised 2 milion jobs but couldn’t deliver even 20% that so far, he alleged. “How many unemployed youths did receive a monthly allowance of ₹3,000 until employment was secured?” he asked.He said the people still have faith that Naidu will fulfil at least 50% of his poll promises by the completion of the term.Coalition stays stableThe coalition’s political stability has been strengthened by the complementary roles played by its three partners. Jana Sena chief and deputy CM Pawan Kalyan has focused on governance and rural development initiatives, particularly village infrastructure, roads and water supply projects.Though less visible politically than during the election campaign, Jana Sena has sought to build its organisational structure and governance credentials.Within the TDP, Naidu has increasingly elevated his son and IT Minister Nara Lokesh, appointing him as the party’s working president and signalling a gradual leadership transition. Lokesh has emerged as a key figure in both governance and party organisation.The BJP, while not making major electoral gains in the state, has expanded its organisational outreach under its new state leadership and continued to leverage its role in the coalition.The alliance has also benefited from its strong relationship with the NDA government at the Centre, enabling Andhra Pradesh to secure substantial financial assistance and project approvals.