Post by : Rameen Ariff

Tensions have escalated between Andhra Pradesh and Karnataka over investment opportunities and city infrastructure, with Andhra Pradesh IT Minister Nara Lokesh taking a sharp dig at Karnataka in a recent online exchange.

Lokesh’s comments came after complaints surfaced regarding poor roads and traffic congestion in Bengaluru, India’s IT hub, which have affected businesses and daily commuters. Reacting to these concerns, Lokesh posted on X, “They say Andhra food is spicy. It seems some of our investments are too. Some neighbours are already feeling the burn.”

The spat began in mid-September when Rajesh Yabaji, co-founder of a logistics firm in Bengaluru, highlighted long commute times and poor road conditions in the Bellandur area. Lokesh quickly suggested Visakhapatnam (Vizag) in Andhra Pradesh as an alternative for businesses seeking better infrastructure.

Speaking to NDTV last week, Lokesh said Andhra Pradesh had already attracted over $120 billion in investments and admitted that the rapid pace of reforms had caused some friction with Karnataka. “That is their challenge,” he remarked, addressing concerns about competition between the states.

Karnataka leaders have responded firmly. Deputy Chief Minister DK Shivakumar and IT Minister Priyank Kharge criticized Andhra’s investment campaign as an attempt to poach from Karnataka’s established ecosystem. Kharge said, “You can’t match Bengaluru’s infrastructure, startups, human resources, and innovations… Let them do whatever they want.”

The rivalry gained further attention after tech giant Google chose Andhra Pradesh over Karnataka for a $15 billion investment in a data and AI hub over the next five years. Lokesh’s earlier comments on “spicy investments” were seen as a direct reference to this win.

Kharge raised concerns about the incentives Andhra offered to attract Google, including subsidies worth Rs 22,000 crore, tax waivers, and utility benefits. Lokesh dismissed the criticism, stating, “If they are inefficient, what can I do? Their own industrialists say the infrastructure is bad… there are power cuts. They should first fix those problems.”

The dispute intensified after Biocon chief Kiran Mazumdar-Shaw tweeted that a visiting Chinese colleague was surprised by Bengaluru’s poor roads and garbage issues, questioning the government’s support for investments. This, along with citizens threatening to withhold property taxes until infrastructure is repaired, added fuel to the ongoing state-level rivalry.

The Andhra-Karnataka clash highlights the growing competition among Indian states to attract investment, particularly in the IT and technology sectors. It also underscores how city infrastructure, governance, and incentives play a key role in shaping business decisions.

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