A street in Hyderabad, the proposed city for the new state Telangana
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New Indian state Telangana creates uncertainty for businesses

9 August 2013 Last updated at 09:31 BST

Businesses in India are weighing up the ruling Congress Party's decision to create a new state, by splitting the southern Andhra Pradesh into two.

Plans for the new region, which will be called Telangana, have prompted both protest and celebration.

The BBC's Yogita Limaye reports from Hyderabad, the proposed joint capital of Telangana.