Nara Lokesh Takes a Dig at Karnataka After Google Picks Vizag for $15B AI Hub

The economic rivalry between Karnataka and Andhra Pradesh has taken a colorful turn, blending politics with investment strategies. The latest flashpoint: Google’s decision to establish a $15 billion artificial intelligence hub in Visakhapatnam, bypassing Bengaluru, the tech capital of India.

In the wake of the announcement, Andhra Pradesh IT Minister Nara Lokesh did not hold back, taking a playful jab at Karnataka: “Andhra food is spicy and some of their investments too.”

Lokesh’s quip highlights the subtle but growing competition between the two southern states as they vie to attract large-scale corporate investments.

Bengaluru in the Spotlight

Karnataka has faced criticism for missing out on Google’s mega-project. Leaders from Janata Dal (Secular) questioned whether Bengaluru’s business environment is truly conducive for global investment. Industrialist Kiran Mazumdar-Shaw added her voice to the debate, pointing to poor roads, waste management, and infrastructure challenges. She recounted an overseas visitor comparing Bengaluru unfavorably with cities in China, emphasizing the hurdles the state faces in attracting multinational projects.

Karnataka Strikes Back

The state government, however, remains confident. Deputy Chief Minister DK Shivakumar defended Bengaluru’s credentials, citing its unmatched startup ecosystem, skilled workforce, and innovation capacity. Congress leader Priyank Kharge acknowledged the criticism but pointed out that infrastructure issues are often caused by heavy rains and rapid urbanisation, rather than administrative shortcomings.

Meanwhile, Minister Santhosh Lad suggested that Andhra Pradesh’s investment gains were supported by central government funding, hinting that Karnataka could achieve similar success with additional resources.

Beyond Politics: The Bigger Picture

This latest exchange is more than just political banter; it underscores the intense competition among states to secure economic growth and investments. Both Karnataka and Andhra Pradesh are racing to showcase business-friendly environments, improve infrastructure, and attract global attention.