MC EXCLUSIVE Andhra vs Karnataka: "Will compete for every rupee of investment," says AP Minister Nara Lokesh

“I keep saying we're on the better side compared to other states,” Nara Lokesh said.

Nara Lokesh, Andhra Pradesh’s IT minister has backed his recent social media outreach urging enterprises to set up business in the state, a pitch that had triggered a war of words with Karnataka IT Minister Priyank Kharge over attracting investments.

"My agenda is job creation. With that goal in mind, I will compete. And if citizens are complaining about certain cities not living up to their promises, then I believe I have every right to attract that investment to Andhra Pradesh instead,” said Nara Lokesh, who is Andhra Pradesh’s Minister for Information Technology, Electronics and Communications.

Lokesh told Moneycontrol during an exclusive interview that he is competing with every Indian state to attract every single rupee of investment that he can. “I keep saying we're on the better side compared to other states.”

Earlier this month, referring to the infrastructure woes voices by netizens and entrepreneurs from Bengaluru, Lokesh had said that Andhra Pradesh would be an ideal destination for investments. “As India’s youngest state, we are looking for every opportunity to grow and generate jobs. I truly believe that as states compete for investments and jobs, India will prosper. My humble suggestion - Arrogance, like potholes on roads, should be fixed first before the journey gets tripped up!” Lokesh had posted on X, on October 3.

Responding to the post, Karnataka’s IT minister Kharge had said, “It is natural for weaker ecosystems to feed off stronger ones. Nothing wrong with that, but when it turns into desperate scavenging, it shows more weakness than strength.”

When asked whether any Bengaluru-based start-up or IT firm is looking to invest or shift base to Andhra, Lokesh told Moneycontrol, "you'll hear about that very soon."

"We're currently in the process of finalizing things. I think it would be unfair if I jumped the gun at this stage. I believe it should be an announcement that we make together with the company," the AP minister said.

The reason why these companies would prefer AP over Karnataka is because his state government is genuinely willing to listen, said Lokesh. "We're ready to work hand-in-hand with companies to build the complete ecosystem they need," he added.

Read More: Focus on balancing welfare and development, ups and down part of political journey: Nara Lokesh

"The companies that have already invested in Karnataka and other states - they're willing to listen to what we're offering. That's precisely why they're now coming and investing in Andhra Pradesh. You see, I've been consistently pitching this whole concept of clusterization - let's build industrial clusters together. And this isn't just talk, we've actually done it. We've successfully done this with Kia," said Lokesh.

"In fact, I would invite everyone to come and see for themselves -the kind of ecosystem we've built there. And I keep saying this - it's actually better than what Bengaluru has to offer," he added.

The Minister pitched Andhra’s excellent roads and 24-hour power supply to businesses. "…beyond that, just look at the complete ecosystem we've created. The shopping centres are there, Korean shopping malls have come up, Korean restaurants are operating there."

Read More: H-1B fee hike is an opportunity for 'brain gain': Andhra IT Minister Nara Lokesh

“The incentives that we've provided aren't just for Kia alone - they're for the entire ancillary ecosystem around Kia. They've built a truly world-class automotive manufacturing ecosystem. And mind you, this is in a district (Anantapuram) that was once among India's most backward districts. The per capita income there has grown five times over in the last seven to eight years since Kia started operations," Lokesh said.

"Nine percent of Kia's global manufacturing now comes from there. These ecosystems are already here, and we will continue building more. And we can do this from the ground up in a much more organized and disciplined manner than others," he said.