Moneycontrol PRO
Outskill Genai
HomeNewsBusinessGoogle's $10 bn Vizag data centre gets tax certainty, "double engine bullet train" govt helped: Nara Lokesh, IT, electronics and HRD minister

Google's $10 bn Vizag data centre gets tax certainty, "double engine bullet train" govt helped: Nara Lokesh, IT, electronics and HRD minister

He also spoke about the hike in H1B visa fee that could be a brain gain for the state which sends lakhs of professionals to the US every year.

October 14, 2025 / 11:55 IST
“I keep saying we're on the better side compared to other states,” Nara Lokesh said.


From pioneering the '99 paise model of development' to aggressively pitching the state as an investment destination to Google's investment of $10 bn in setting up a 1GW data centre cluster in Vizag, Nara Lokesh, Minister of Informational technology, electronics and human resource development in a free-wheeling conversation with Shweta Punj spoke about his promise to create 2 million jobs in the next five years, why TDP's relationship with the BJP is a relationship of equals and why welfare and development will go hand-in-hand in the state. He also spoke about the hike in H1B visa fee could be a brain gain for the state which sends lakhs of professionals to the US every year.


Shweta: What went behind the scenes into convincing Google to come on board? You have competition with Tamil Nadu, Karnataka. These are the states that promise an existing ecosystem. How did you do it?

Nara Lokesh: In Andhra Pradesh, we have a double engine bullet train. So if you look at it, it's been a great relationship between the state government and the central government. We are able to not only provide best in class incentives, but we're also able to help in terms of creating policies and any changes that is required at the central government level.

Okay, so we were able to lead these conversations from the front. So if you look at it, our first meeting with Google was way back in September, 2024. Okay. Where I hosted them over lunch.
Drove them down personally, show them where they can do their data center, and then I followed it up with my visit to their HQ and continue the conversations at the central government level.
Got a lot of clarity on various points, and then here we are. Okay. A year later, grounding India's largest FDI investment ever.

Shweta: India's largest FDI investment ever since liberalization. So that's quite an accomplishment. What are the key things that, Google has asked for. what are the terms of engagement that have been discussed and agreed upon?

Nara Lokesh: If you look at it from an incentive package, see, end of the day, every state is competing and we are going to compete on the incentive package in that sense. But what got us talking even more is the changes that is required at the central government level, at the policy level interventions. How would you define permanent establishment? How do you look at data that comes in, gets processed and then goes out, how do you look at data embassies? So these were the questions that we were able to answer, which no other state was able to answer because again, in under we were double engine bullet train working.

Shweta: So what are the changes that we can expect coming in from the centre?

Nara Lokesh: One, if you look at it as a political establishment, we are a regional political party, but we have the nation at heart. We always work in the interest of our nation, and Mr. Naidu has always done it in the past. If you look at privatization of airports, telecom, deregulation, he's done that.
We are doing it all over again with data. We were able to work through. And, ensuring that there's no retrospective taxation never gets hit in this particular space.

Shweta: And how about data storage?

Nara Lokesh: already exists so that states already have power. But the question was, suppose I'm working on data that is X country, the data is just coming in. Getting processed here using, various other technologies, and then gets exported out.

Shweta: Right

Nara Lokesh: Now how does taxation apply on it? How does law lawful interception apply on it? So these were questions that we had to answer. Which is not only in the interest of Andhra Pradesh, but in the interest of nation. And we were able to resolve these issues. Lot of nuances, lot of back and forth. But the way Google and Andhra approach this conversation is to be honest with each other. We said, okay, this is the problem statement. Let's go solve this problem statement.

Shweta: You've also, somewhat pioneered this whole 99 paise development model. Did google also get land at 99 paise?

Nara Lokesh: Actually not. It's at a certain market price that was mutually agreed upon. But then our 99 paisa model is now being delivered through a policy called the lift policy.of the very first states to pioneer it. That's enabled us to attract investments. Land is one component of it. But what we have is amazing talent pool. So that's where I believe we have the right talent. We have the right ecosystem, and now we have the speed of doing business.

Shweta: What is the what is the rule book that you're followingon ease of doing business?

Nara Lokesh: It's called Naidu 4.0. We have the best version of Mr. Naidu and his government. Now see, politically 50% of our MLAs are first timers. 17 out of the 25 ministers are first timers. It's what we bring is raw energy, passion to solve problems. Once we shake hands with any company saying, okay, let's look at Andhra and say, okay, this is the investment. It no longer is their project. It becomes our project Together, we are in it together, and first thing that gets done is a WhatsApp group gets created, really, where the chairman of that company is on the WhatsApp group.
And as a minister, I'm on that group. And on a weekly basis, we have updates on the project from Andhra’s perspective, government perspective, and the company's team also updates. And if it goes mute for about 10 days, then reminders actually come from me. I ask, what's the status of this project? And it happened in one instance. I said, okay, I haven't heard from you. It's been 10 days. What's going on?

Shweta: So how many WhatsApp groups do you have running?

Nara Lokesh: that's the trade secret. I won't be sharing it. I spend considerable amount of time on WhatsApp. I spend about three hours on whatsapp.

Shweta: And are you downloading Arattai now?

Nara Lokesh: Yes, I already have it.

Shweta: As India pitches itself as a big data center AP is doing it as well, how are you going to balance concerns regarding electricity and water? Because these are concerns that have emerged across the world. Yep. As we do know that data centers take up a lot of power and water is a precious resource for India. How are you ensuring that you strike the right balance?

Nara Lokesh: If you look at it as a state, we believe low cost of energy can be a competitive advantage. So if you look at it, we've promoted renewable energies at a big scale. At a gigawatt scale, we've signed with Tatas, we've signed with Renew GreenCo is a homegrown company and it's not just about solar and wind. We are also doing PSP pump storage projects. We are implementing battery energy storage systems, and there's always going to be a base load that has to come from thermal power. So we are actively going ahead and doing these tenders to find out who's going to give us thermal at the lowest possible cost. And with this proper mix and being efficient in the way we approach this challenge, we were able to reduce power prices by 13% percent, across the entire state. Across the state. Alright. And if I'm correct, we're one of the very few states, or perhaps the only state, who's achieved this. So it's all about being more efficient.

It's about managing your grid much more efficiently. Now coming to water. We have Godavari, which has surplus water, and we are doing a massive project to bring Godavari waters all the way to South Andhra. So from North Andhra all the way down to South Andhra. Alright. And it's called the interlinking of rivers, as we've always said, it's been a dream for India. No one has been able to achieve it till now, but Mr. Naidu is leading that project from the front. So we should harness all this water, which otherwise goes to waste during our rainy season. So that's where we are looking at water security as well. Alright. So while other countries, if I may say, have looked at data centres as an extension and are using the existing grid. We're talking about building an entire ecosystem for data centres.

Shweta: Ireland has actually put a moratorium on more data centres, and a few countries have done that.

Nara Lokesh: Yes, yes. And I believe that India should not do it, and India should split the grid into
two, if I may suggest, and say, alright, data centres, this is the way we are going to do it, and
this is the kind of energy that we're going to use for it from renewable sources. So Andhra is perfect in that sense. So we have wind energy, we have solar, we have the pump storage projects that are coming up. A bit of thermal in the mix as well.

Shweta: Alright. Is that the format that you're looking at? A separate grid for the data
centres?

Nara Lokesh: Absolutely, yes.

Shweta: Alright. Have you done any assessments on what this will actually cost the state
exchequer? Because typically what happens is that power prices tend to go up, and that's
where public discontent comes in, isn't it?

Nara Lokesh: One thing I can assure you is that power prices will not go up. That's a
guarantee from our side. Secondly, regarding the grid, Google is also making investments in it, and the state will be subsidizing a portion of it. So it's a win-win situation for everyone involved. Both parties benefit from this arrangement.

Shweta: So how many jobs are we actually talking about here, and what are the timelines
that Google is working with?

Nara Lokesh: Three years to execute the first gigawatt. Apart from Google, we have a few other players also investing. Sify, for instance, we just did the groundbreaking ceremony yesterday. Five hundred megawatts is coming on stream from them. Typically, every gigawatt creates approximately two lakh jobs, both direct and indirect employment. That's the kind of ecosystem we're building here.

Shweta: So over the next three years, we're looking at around two lakh jobs, correct?

Nara Lokesh: Actually, my mandate, the mandate given to me by the Honourable Chief
Minister, is to create five lakh jobs in the IT sector alone in the next three and a half years.

Shweta: I see. You know, one gets a bit of a déjà vu feeling here because we've seen Shri
Chandrababu Naidu do this with Hyderabad earlier. And now we're seeing this happening
with Visakhapatnam and Amravati. Does it ever occur to you, or does it concern you, that perhaps some mistakes of the past should not be repeated? How are you ensuring that you
take all of Andhra Pradesh along with you? How are you planning to ensure that the rural
areas don't feel left behind in this AI and data-driven growth approach that you've adopted?

Nara Lokesh: See, it's all about balancing welfare and development, no? As a political party,
we've always been focused on both aspects. We've had our ups and downs, and I believe
that's part and parcel of every political journey. But this time around, we're also focused on
agriculture.

On aquaculture. And then AI, all the way up to artificial intelligence. Let me give you one
example to illustrate this. We have the SIPB, the State Investment Promotion Board, where we discuss all the companies, the incentives, and so on and so forth.

In one of the recent meetings, I came across a company doing mushroom processing. And
the secretary in charge of food processing mentioned that ninety percent of mushrooms
supplied to the globe comes from one country, and that's China.

And then it was a lightbulb moment for me. I thought, aha, what can Andhra do in the
mushroom sector? Within exactly twelve hours, we had a three-page research note ready.
We went to the Chief Minister to get the green signal from him. He said, done, let's do it.
Industry should lead this initiative, bring everyone together. So what we've done in
aquaculture, we're going to replicate that entire model in mushroom cultivation as well.
We're calling it the Mushroom Mission.

You see, Andhra Pradesh has a big vision. We want to grow from 188 billion dollars to a 2.4
trillion dollar economy by 2047. To achieve this target, we need to work across all sectors,
and agriculture will play a crucial role in this journey.

Shweta: So which are the key sectors you're focusing on? Agriculture is one, obviously.
Agriculture, AI...

Nara Lokesh: Yes, across all sectors actually. Industry is going to be huge, services will be
big. Frankly speaking, every sector is important for us to achieve our goals.

Shweta: What are the key lessons you've learned from your father, from Mr. Naidu, to
ensure that the same mistakes aren't repeated this time around?

Nara Lokesh: Look, winning elections is important, every single cycle matters. But what's
more important is convincing people about the value of continuity in governance.
See, people saw the good work we did between 2014 and 2019. But then someone else
came along saying, "I can do even better." And people thought, "Okay, let's give him a
chance, no harm in trying."
Then we all witnessed five years of really poor governance, and people genuinely regretted
their decision. That's exactly why they gave us such a massive 94% mandate this time. Yes.
And we're working with a lot of humility despite this huge mandate. Our focus is clear - we
have to create jobs.
Because honestly, every family has well-educated children at home, and they're all
asking just one question: where are the jobs?
And these jobs will come from all sectors - tourism, agriculture, services, blue collar work,
manufacturing, everywhere.

Shweta: Is skilling a major challenge in the state? Has Google raised this concern, or other
MNCs who are looking to invest? Because there's this general worry across India that we
don't have the skills needed for the future. Is that a concern in Andhra Pradesh as well? How
are you planning to address it?

Nara Lokesh: See, skilling isn't just an India problem. It's a global challenge actually. Every
country in the world is facing this same pain point.
But what we're doing in Andhra Pradesh - and skills development comes under my ministry
The approach we're taking is we've created a portal that doesn't just match supply and
demand.Nara Lokesh: We're going beyond that. We're also identifying what skill interventions are
needed. What specific skill upgradation is required? Which sectors need this upgradation?
That's one aspect. The second thing is what I call clusterization. This is very, very important.
Agriculture, manufacturing, tourism, all these sectors.

Shweta: I want to discuss your 99 paise model of development. TCS has received land in the state at 99 paise. Cognizant has also got it. Doesn't it worry you that the narrative might change, and some
political parties might attack you with allegations similar to the loan waiver issue that was
raised against the Modi government? Does this concern you at all?

Nara Lokesh: What concerns me is job creation, more and more jobs. My straightforward
response to anyone questioning this is, why are you giving land at 99 paise? Well, we're
talking about 25,000 IT jobs. The economic impact this will have on that entire region is
tremendous. That's precisely why I have a very transparent policy for this. Some people
have even approached the court to challenge it, but the court refused to even admit their
petition. The court said there's no case here at all. Because tell me, what's wrong with giving
land to TCS? What's wrong with giving it to Cognizant? I'm not handing it over to my friends
or family members.

Shweta: These are reputed companies, but are you confident that the jobs will actually be
created?

Nara Lokesh: Absolutely confident. These are all marquee names in their respective sectors.
Whatever commitments they've made in the past, they've always delivered on them. This
policy, the LIFT policy, is specifically designed to attract Fortune 500 companies who have a
proven track record of creating economic value and generating employment. This is part of
the formal agreement. It's written into the agreement based on which the land is allocated
to these companies.

Shweta: I want to talk about this ongoing rivalry you have with Mr. Priyank Kharge of
Karnataka. There's this constant back and forth, this war of words that we see playing out
on social media platforms. You keep calling out Bangalore for its potholed roads and
infrastructure issues. Why this confrontational approach with Karnataka?

Nara Lokesh: Look, I'm competing with every state in the country. I'm competing for every
single rupee of investment that we can attract. As I've said before, my agenda is job
creation, more and more jobs. 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.
I keep saying we're on the better side compared to other states.

Shweta: Indeed, you do keep saying that quite often. So, have any Bangalore firms actually
taken you up on your offer?

Nara Lokesh: 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.

Shweta: Right, so let me ask you this - what exactly are you offering to these companies?
Why should they choose Visakhapatnam over, say, Bengaluru? After all, Bengaluru already
has a well-established ecosystem, Visakhapatnam is still developing,
isn't it?

Nara Lokesh: Absolutely, that's a very valid question. See, the main thing is this - in Andhra
Pradesh, you have a government that's genuinely willing to listen. We're ready to work
hand-in-hand with companies to build the complete ecosystem they need.

Shweta: Are you suggesting that Mr. Kharge isn't willing to listen?

Nara Lokesh: Look, that's their challenge to handle. But at the end of the day, 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.
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.

Shweta: Why?

Nara Lokesh: Because we have excellent roads, twenty-four hour power supply. But 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.
And the incentives 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 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.
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.

Shweta: But doesn't it become challenging for you to pitch a developing state like Andhra
Pradesh against more established states like Tamil Nadu and Karnataka? Tamil Nadu
announced today that Foxconn will be investing about fifteen thousand crores in their state.
How much of a challenge is that for you? Because as I mentioned, Andhra Pradesh is still
work in progress. You're trying to rebuild the state, and you're up against some really
formidable competition.

Nara Lokesh: Look, competition is actually good. When states compete with each other,
India wins - it's as simple as that. And we've already attracted one hundred and twenty
billion dollars worth of investments in just the first seventeen months of what I call our
double engine bullet train government.

Shweta: Speaking of bullet trains, is an actual bullet train also coming to Andhra Pradesh?

Nara Lokesh: Absolutely, we're actively working on it. You see, strategically speaking, from a
geographical perspective, Andhra Pradesh plays a very crucial role in connecting all the
major metros.
That's why if you look at the industrial corridors as well, the majority of them actually pass
through Andhra Pradesh. So we have a significant role to play. States should compete, and I
genuinely believe that competition brings out the best in all of us.
And that's exactly why we've secured one hundred and twenty billion dollars worth of
investments. India's largest steel plant is coming to Andhra Pradesh. The single largest FDI
investment ever in India is coming to Andhra Pradesh. Cognizant is expanding here.
Among several other players as well.

Shweta: Now, I want to go back to something that Mr. Priyank Kharge has said. He has
actually compared Andhra Pradesh's efforts to attract investment to what he called the
desperate scavenging of a weaker ecosystem. That's what he called Andhra Pradesh. How
do you feel about this? Because somewhere, this competition is taking a bit of a vindictive
turn, isn't it? It makes for great headlines for us, but how do you feel about Mr. Kharge
talking about AP like this, calling it a parasite, pretty much?

Nara Lokesh: Well, that's exactly why we got Google and several other projects that are
now coming in. We got LG, we got Skyroot landing in Andhra Pradesh. If this is what they
want to call scavenging, then so be it. We have secured 120 billion dollars worth of
investment in just the first 17 months, and there's more to follow. We are definitely up for
the challenge. Every investment that I lose to a neighbouring state is one investment less for Andhra, and I go back to my team and say, where did we go wrong? What are the mistakes? How can we learn from this?

Shweta: Did you have that conversation about Foxconn going to Tamil Nadu?

Nara Lokesh: Andhra has not lost Foxconn.

Shweta: Tamil Nadu, they went to Tamil Nadu. I'm not saying you've lost Foxconn, but are
they also coming to Andhra?

Nara Lokesh: You will know about it soon.

Shweta: I would like to read into that statement, thinking that Foxconn is setting up in
Andhra as well. Are you having conversations?

Nara Lokesh: We are having conversations, yes.

Shweta: You're having conversations. Alright. I also want to talk to you about the bullet train
that you referred to earlier. The state is designed in such a way, the geography is such that a
bullet train would work very well. So are those talks also in advanced stages?

Nara Lokesh: Yes, we are. The honourable Chief Minister is talking to Ashwini Vaishnaw and
looking at how we can integrate connectivity between Hyderabad, Bangalore, Chennai, and
Visakhapatnam. We have an entire ecosystem that can be built out. That's the kind of
conversations that we are having.

Shweta: And what are the timelines that you're working with?

Nara Lokesh: It's too early to say right now. Let the conversations move forward, and then
I'm sure I'll come back to you with clear timelines.

Shweta: Alright. You have spoken about your aim to compete with countries like Singapore
and the UAE. What are the timelines that you're working with there? Because you
mentioned that you want to make Andhra Pradesh a 2.4 trillion dollar economy by 2047. So
what are the timelines that you're working with here?

Nara Lokesh: We are always in a hurry. We believe that reforms should have happened
yesterday. If you look at it, one of the challenges that I got from the Government of India is
labour reforms.
They said, these are the reforms that we want our states to implement, and would Andhra
Pradesh be willing to do it? We got everything done in just 15 days.
So that's the pace at which we're working.

Shweta: Which is the one that's still pending?

Nara Lokesh: There's one which has something to do with dispute resolution in
construction.
That’s something that we believe requires greater dialogue with all stakeholders. But I'm
confident that in the next cabinet meeting, within the next 15 days, we'll bring it forward.
So we are fast, we are aggressive. We believe that reforms are very beneficial. They create
a very competitive environment, and we can deliver on our promise of speed in doing
business. We are the only state that offers 700 citizen-to-government or business-to-
government services on a single WhatsApp number. 700 services.
And we've achieved this in just 17 months.

Nara Lokesh: It works fantastically. It works exceptionally well, from paying your electricity
bill to getting your certificates. Everything is available on a single number.

Shweta: And how many people are using this number?

Nara Lokesh: It's a WhatsApp number. On a weekly basis, close to half a million people
interact with it.
Half a million people access that service.
On a weekly basis. Every single week.
Every week. So we are bold, we are willing to implement such reforms. That is what makes
Andhra Pradesh very unique and competitive.

Shweta: And labour reforms, you mentioned that you've already implemented those.

Nara Lokesh: Yes.
Women in the workforce. Enabling women to work longer hours and more flexible days,
right?
So the total number of hours they work in a week remains the same. But in manufacturing,
because they come and they're there, they're willing to work longer shifts. But we didn't
have the enabling environment and reforms. And again, it's all about creating more and more jobs.

Shweta: Right, so moving on to another important topic. Nearly one-fourth of all H-1B visa
holders are actually from the Telugu-speaking states, isn't it? And now with all these
changes happening in the H-1B visa regime, what kind of impact do you foresee?
Particularly for Andhra Pradesh, for the youth from your state who have been aspiring to
work abroad?

Nara Lokesh: You know, Shweta, we've always believed that every crisis brings with it an
opportunity. That's the approach Mr. Naidu has consistently taken throughout his career. If
you look at how we're approaching investments in the IT sector today, especially in the GCC
space, we're being extremely aggressive about it.
We strongly believe that the time has now come for what we call brain gain. India is no
longer just about cost arbitrage anymore. It's about knowledge, it's about the talent pool we
have. Look at the GCCs already operating in India. The kind of products and services they're
offering are meant for the global market, not just for the US.
So there's tremendous scope for growth here, and GCCs have a very crucial role to play in
this. If states keep their focus sharp and execute properly, there's significant brain gain to be
achieved.

Shweta: So what's your concrete plan in this regard? Are you expecting professionals to
return? How exactly are you planning to tap into this opportunity?

Nara Lokesh: See, we're building an entire GCC ecosystem. The AI-based data centers that
are coming up in Andhra Pradesh will play a major role. And of course, proactive marketing
is key. As I always say, ABC, ‘always be closing’. That approach is helping us tremendously in
this space as well.
All of us are still trying to
understand the full implications better. But the important thing is, whoever decides to come
back, we need to be ready with the right ecosystem and opportunities for them.
And as I mentioned earlier, we see this crisis as an opportunity for us to do even better.

Shweta: I'd like to
shift our discussion to state finances. There's quite a lot happening in Andhra Pradesh, but
the state is also dealing with substantial debt and high interest payments, isn't it? So how
are you planning to ensure that while positioning yourself as a high-growth state, you also
maintain fiscal discipline?

Nara Lokesh: You see, at the end of the day, striking a balance between welfare and
development is going to be absolutely crucial. Both need to work hand in hand.
Only when both move forward together can the state truly progress. That's been our
approach right from day one, and we've been managing to balance it quite well, I'd say.
Our capital expenditure has also increased significantly compared to the previous five years
of poor governance.
So that's been our strategy, you know. Attracting investments, creating employment
opportunities.
And this kickstarts the entire economic engine. If you look at the period just before GST 2.0
came into effect, our GST collections were growing at 20 percent year-on-year. So we're on
this high-growth trajectory. Massive investments are coming in, the economic engine is
getting revived.
And once the economic engine really cranks up and gains momentum, I'm quite confident
that servicing our debt won't be a problem for us.

Shweta: Are there any specific timelines you're working with for this? In terms of debt
management.

Nara Lokesh: Managing debt is always an ongoing effort for any state or any nation, for
that matter.
And I believe that investing in capital expenditure is going to be absolutely critical, and
that's exactly what we're doing.
Creating and kickstarting the entire economic engine is going to be vital. And we've just
begun that journey.

Shweta: And are there any specific projects and investments that are being fast-tracked
to ensure that you see a faster turnaround? Because many of these are long-term projects,
correct? But are there any short-term projects you're working on where one could see
quicker returns?

Nara Lokesh: Global Capability Centres are an excellent example. Investments in the
IT sector are another great example. Renewable energy is yet another area where we've
attracted significant investments.
Manufacturing is something we're really doubling down on. Ports and fishing harbours are
also major focus areas for us. Agriculture is a big priority. Diversification of agriculture,
particularly. We aspire to become number one in horticulture.
So we have a very clear trajectory mapped out. We want to become a 2.4 trillion dollar
economy. For that, we need to grow at 15 percent CAGR. We know the growth rate
required from each sector and how much each should contribute for us to achieve that
overall growth rate.
And we're going about this very systematically, implementing it step by step.

Shweta: You mentioned that capital expenditure has increased. But when we look at the
ratio between CapEx and welfare spending, are we seeing that gap narrow down
significantly? Because, you know, southern states, particularly Andhra Pradesh, have always
been quite strong on welfare schemes.
Andhra Pradesh is no exception to this. The gap between capital expenditure and welfare
spending has been quite wide. So, will we see this gap reducing going forward?

Nara Lokesh: Look, welfare will definitely continue.
I'm not saying we're going to reduce welfare spending. That's not the plan at all. It's crucial
to support the poor, not just by giving them financial assistance, but by actually helping
them break out of the poverty cycle.
This is something we're deeply committed to as a state.
And at the same time, we're investing heavily in capital projects. Infrastructure like ports,
roads, the power sector where we're bringing in next-generation reforms. There are various
models available to us, the hybrid annuity model, public-private partnerships.
These different models allow us to bring in the private sector to boost capital investment in
the state. I firmly believe both can go hand in hand, welfare and development.

Shweta: I'd like to discuss your relationship with Prime Minister Modi and the central
government. TDP is a very important party for the Centre.
You're a crucial ally for the BJP, and you also represent their presence in a region where
they're not as strong as they are in the north. How would you characterize this relationship?
Is it a partnership of equals?

Nara Lokesh: See, our support has always been unconditional. We joined the NDA
before 2024 without any conditions. We've continued supporting the alliance
unconditionally. Of course, we may have our views on certain regulations or policies, but
those discussions happen behind closed doors.
At the end of the day, whatever position TDP takes, it's always in the nation's interest.
Any policy inputs we provide are always keeping the nation's welfare in mind.
Mr. Naidu has demonstrated this throughout his tenure, in his first term as Chief Minister,
second, third, and now in his fourth term. All the policies he's supported have always been
in India's best interest.
So he's always kept the nation's interests at heart.

Shweta: There might be certain major policies where TDP's views differ from the
Centre's. For instance, I'd like to hear your thoughts on the caste census that the opposition
has been advocating for. What's your position on this?

Nara Lokesh: Look, we've had differences of opinion on the Waqf Bill.
That's precisely why it was sent to the Joint Parliamentary Committee.
As a political party, we provided our inputs to the JPC, and those suggestions were
incorporated into the bill.
We're going to continue playing a very significant role in such matters.
We provide our feedback, and honestly speaking, the BJP has been a wonderful partner.
They are willing to listen to us, they hear us out properly, and they take our feedback to
make the bill better if it's needed.
It's not like they come and say, this is the bill, you must support it, nothing like that.

Shweta: So that's not the approach they take. Right. Because that's something the BJP
has been accused of, isn't it?

Nara Lokesh: Absolutely. No, I feel that's quite unfair actually. This high-handedness
accusation.
I think that's quite unfair, because opposition parties keep saying this.
But in our case, it hasn't been like that at all. We've had our views, but as I mentioned, we
express them within the four walls, and we find ways to give our inputs and get them
incorporated.

Shweta: So you feel heard in this arrangement? In this alliance?

Nara Lokesh: It's not just about being heard, actually. We are partners together in
building the country.
And that's always been our approach, you see.

Shweta: So you feel like an equal partner in this relationship?

Nara Lokesh: Absolutely.

Shweta: Now I also want to talk to you about your relationship with Prime Minister
Modi. Some of your moments on stage have been captured on cameras and it has created
quite a buzz in Delhi, hasn't it?
He patted your back. He refers to you as Lokesh Bhai. Tell me a bit more about this
relationship, because it's quite an unlikely relationship, no? You're much younger. He's
much older. One would think that he has great regard for your father, Mr. Naidu, and their
relationship goes back several decades.
But you have carved your own path with the Prime Minister. Tell us a bit more about how
this relationship has developed into what it is today?

Nara Lokesh: I think I'm the luckiest person in India because I have two great
mentors, you see. One is my leader, Mr. Naidu, and second is the honourable Prime
Minister Modi ji.
I'm just lucky in that sense. And the honourable Prime Minister has always been very
inspiring. So when I got the opportunity to meet with him one-on-one, he gave me time and
he answered all the questions I had. Because as a youngster, I had a whole list of questions
that I went to him with.
About him only. How is he so motivated? Because just look at it, no? He was the Chief
Minister, and then this is his third term as Prime Minister. But just look at the energy he has.
That's right. And the way he works day in, day out.
The kind of sense of purpose he has. So there were questions around that, questions about
his discipline, his hard work and all.
I had quite a few questions, almost two hours worth of questions I had. And after that, I
walked out feeling so inspired. And he was kind enough to host my family also. So I went
there with my wife, with my son. He was kind enough to give me that time. And my wife,
she's a second generation entrepreneur. She came back feeling inspired and she said,
together we should work even harder.
In our own ways, you know—politics for me, business for her—to contribute to the nation.
So the Honourable Prime Minister has this quality, no—he can inspire a whole
generation of leaders.

Shweta: And anything specific that he said which has stayed with you from
that conversation?

Nara Lokesh: Oh, quite a bit, actually. Quite a bit. See, one thing I asked him was, I said,
once you become a Chief Minister or a Prime Minister, you tend to get cut off from the
ground reality, isn't it?
So, my question was, how do you stay connected, sir? Like, how do you actually hear what's
happening? And it was amazing, what he told me. He said, see, he gets quite a few letters as
Prime Minister, no. His office, they bring in a hundred letters which are unopened, and
every day he picks up 10 of them, opens them, and reads them personally.
And that's the way he keeps his ear to the ground, you know. He understands the nuances
of India, of Bharat, and that's why I believe he's such an amazingly successful Prime
Minister. As a youngster, that's something I felt I should learn from him.
And I use WhatsApp as my tool for this.

Shweta: You use WhatsApp for staying connected?

Nara Lokesh: Not letters, but WhatsApp. WhatsApp, yes.

Shweta: You also did a padayatra, which played a very instrumental role in bringing TDP back to power in AP.
What were your key learnings from that padayatra? What are people really
looking for? What motivates them? Any insights you can share?

Nara Lokesh: What India is looking for today is very clear.
Jobs, jobs, and more jobs. Because everyone is spending money to get their children well
educated, but then they're looking for opportunities.
So creating jobs should be the singular focus with which states should work, governments
should work. And that's going to be very critical.
And I remember this incident when I was walking through one village. It was the end of that
day, after which I would camp for the night. So I saw this lady making some snacks, and I
just sat next to her. And I asked her this question. I said, how many years have you been
doing this?
She said, 30 years.
Selling snacks, selling bondas.
I said, what do you expect from the government? She said, 30 years I've been doing this, I've
been saving every rupee. I have two kids. I'm getting them well educated. I lost my husband
to alcohol. So as a government, if you can do me one big favour, it is—get them jobs.
And that is why the first promise we made to the people of Andhra Pradesh is, in five years,
we'll create 20 lakh jobs—2 million jobs. And we are going about it very systematically,
doing this across sectors. And that's why I'm competing with every state in India to attract
investments and create jobs.

Shweta: You mentioned the double engine bullet train, the relationship between the Centre
and the state. I want to understand from you, what exactly are you asking from the Centre? How much financial assistance? What kind of support do you need from the Centre to rebuild the state?

Nara Lokesh: See, if you look at it, the bifurcation of the state is something that the people
of Andhra Pradesh never wanted at all.
They never asked for it, but they were bifurcated. They had no capital city. They had no
economic powerhouse left.
We had five years, the first five years under Mr. Naidu after the bifurcation. We got plenty
of investments, the economic cycle restarted, things were going quite well actually.
Then the change of government happened. It was all extreme welfare with absolutely no
development.
And that really hurt us badly.
Economically, we have had our challenges. Today, we are working closely with the
Government of India on balancing both welfare and development properly.
So welfare is very much there. I'm not saying we have cut back on welfare at all. We are
continuing it, but we are also putting substantial money behind development now.
We are getting plenty of investments. So yes, we will definitely ask for what we believe is
rightfully ours as per the bifurcation Act, what was promised there. At the same time, we
are willing to champion the initiatives of the Honourable Prime Minister wholeheartedly.
That's very important actually, because even the Central Government is looking for states
that are willing to move fast, that are willing to be aggressive when it comes to attracting
investments, and Andhra Pradesh is one such state.
We need to do exactly that.

Shweta: So have you asked the Centre to relax the borrowing limit for Andhra Pradesh?

Nara Lokesh: No, we have asked for support in various other areas actually. Capital
expenditure, various other schemes and all.
So we are looking at how Andhra Pradesh can fit into these schemes and how projects of
Andhra Pradesh, the priorities of Andhra Pradesh, like horticulture is a perfect example of
this.
So it could be cold chain linkages, it could be crop diversification, it could be creating
centres of excellence. Dates is a great example. Dragon fruit, chikoo,
There are great examples like that. Mushroom is another excellent example.
So this is the kind of work we are doing. It's not just about saying we want money, give us
cash. No, not at all.
We are looking at various Government of India schemes that we can tap into properly.
Another great example is the quantum mission.
The Government of India has been talking about the quantum mission,
The funds are available, but no state is coming forward to utilize them.
Andhra Pradesh has said, we are ready. We will build South Asia's first Quantum Valley, and
we are doing it in Visakhapatnam. India's first 158- qubit computer is coming to Andhra
Pradesh in January itself. So you see, there are these wonderful schemes available.
What we are saying is that we are ready to lead from the front. We want to access these
funds and create a vibrant ecosystem that will help us grow.
We request your support in this.
And the Government of India is more than willing because no other state is taking this
initiative, because when it comes to quantum computing, no other state, no other chief
minister has even spoken about it. And here we have Mr. Naidu who is leading the entire
quantum revolution from the front.

Shweta: Will we see you taking on a bigger role in your state? There has been growing demand for you to become the Deputy Chief Minister. Is that something we can expect to see happening, Lokesh?

Nara Lokesh: I already have quite a lot on my plate. You do have a lot already. But
look, I am genuinely excited about bringing change in the education sector. I believe
education is the most powerful tool, the single best tool to lift people out of poverty. We
are transforming the curriculum, focusing on gender sensitivity.
We are working at multiple levels. It has been an exciting journey till now, and I believe this
is just the beginning. We have much more to accomplish and I believe we should create an
education model that we that will make India proud. That is what truly excites me.

Shweta: And you can still do all this while being Deputy CM, no?

Nara Lokesh: That is just a title, isn't it? If you want to do good work, there are hundred
ways to do it. You don't need to be Deputy CM or hold any particular position. If you want to
do good work, I am already a minister and Mr. Naidu empowers his ministers to take bold
decisions. It is not just about Lokesh, any minister in the cabinet can take bold decisions.
And we are ready to do that. I have brought in significant changes in the education sector

Shweta:
And you have grown up under the towering leadership of Mr. Chandrababu Naidu. Does it
ever feel overwhelming that you are his son.

Nara Lokesh: You know, I truly believe I have a great mentor whom I can always turn to whenever I have
ideas or doubts.
As a Chief Minister, he's probably one of the finest that any minister could work with. This
is something all of us ministers echo. We all share this sentiment because he creates an
environment where we can collaborate freely. He's willing to listen, willing to take feedback,
and willing to guide us when we make mistakes.
He's also willing to forgive us when things don't go as planned.

Shweta: Would you say he's very democratic in his approach, or is he more authoritative?

Nara Lokesh: Absolutely democratic. But that's not all.
Because you know, we often hear about strong leaders who can be quite authoritarian.
No, whether in the cabinet or outside it, he's extremely democratic. He's always willing to
listen. You see, he's experienced the greatest of highs and the lowest of lows in his career.
His highs have been truly amazing.
And the lows have been quite challenging as well. Yet he's always remained resilient. The
reason for this resilience is his democratic nature. He's willing to listen and willing to learn.
Now, on one hand, it is indeed challenging to have a father like him.
Because he has this larger-than-life image, you know.
But then I keep telling my team and myself that he's a person worth challenging ourselves
against.
I should work ten times harder than him. That's what I tell myself, that's what I can do.

Shweta: You know, patriarchs often have this particular attitude. One, they don't want to give way,
they don't want to give space to the next generation. It's not just in politics, it's in business,
it's everywhere. I think this happens because once you've built something on your own, it
becomes very difficult to trust that another person will be able to do an equally good job, or
perhaps even better.

Nara Lokesh: Let me give you the challenge and the reality of Andhra Pradesh. Fifty percent
of our MLAs are first-timers. Seventeen out of twenty-five ministers are first-timers. So
we're like missiles, full of energy and potential. But you need a GPS system to guide us
properly so we land in the right place. Otherwise, we could be self-destructive.
Mr. Naidu might be a seventy-five-year-old man, but he comes with the heart of a twenty-
five-year-old. And the energy to match it.
He has these amazing ideas and he's always willing to lead from the front. It's truly inspiring
and motivating. All of us ministers keep discussing among ourselves, before cabinet
meetings and after them, saying things like, "Arrey yaar, how come we didn't think of this
idea? What a brilliant thought!"
Just look at the kind of leadership India has today. The stability we enjoy, the clarity of
thought, the quality of policies India is able to frame. India is no longer seen as a risky
investment destination, while other developed countries are actually appearing in the risk
profile now.
We are leading the way, and I genuinely believe we have fantastic next generation
leadership that is being groomed at this very moment. I am confident that tremendous work
is going to happen, and India will become a thirty trillion dollar economy by 2047.

Shweta: More power to you for saying that. And I believe it too. I believe it wholeheartedly.
But you know, politics and clean politics, that is a bit of an oxymoron, not just in India but
across the world. That is why I said what I said.

Nara Lokesh: I think proper policies have to come for that. We have been probably the only
regional party that has said we should get rid of even the five hundred and two hundred
rupee notes. Look at Mister Naidu's press conference dating back to 2013. He has stood by
his word.
And even today, whenever I meet the honourable Prime Minister, I advocate for this.
Because today we have UPI, we have a homegrown, fantastic product that no other country
on this planet has. It works seamlessly.
And today, if I go to any shop and give a five hundred rupee note, they do not have change
for it. They simply do not have change.
Why do you need five hundred and two hundred rupee notes when
you have UPI? Reducing these denominations will reduce political spending significantly. I
strongly believe in that.

Shweta: So have you pitched this idea to the Prime Minister?

Nara Lokesh: I pitch it to everyone possible.
I pitch it to every other regional party leader as well, because I believe it is very important
for the nation.

Shweta: Who do you admire, and this is my last question to you. Who would you admire in
politics? A state chief minister, and a central government leader, barring your father.

Nara Lokesh: That is a tough one.

Shweta: You cannot name family in this.

Nara Lokesh: Family apart, Mister Naidu has been an inspiration for a generation, for
generations actually.
It is very difficult when you are born into this, and I am, as I said, I am the luckiest person on
this planet to have two great mentors. And you asked about leaders, right? At the state
level, it will be Mister Naidu.
Because day in and day out, it is such an inspiring conversation. I flew with him to Delhi
today, and the kind of ideas that he had, and the way we are working with him, the sense of
urgency is simply amazing. And then of course, the honourable Prime Minister at the central
government level. Just the way he is willing to challenge you, and then once you deliver, he
loves to challenge you even more.
Where else will one get such opportunities, isn't it? This is exactly why I'm confident that
India can achieve it. We have the perfect combination of leadership at both state and
central levels, and together we can rewrite history..

Shweta: My final question to you, everyone has been announcing on X that they're shifting to Zoho.
Is the AP government also planning to do this? Or have you already made the switch?

Nara Lokesh: We've already moved to their messaging platform, actually.
Wonderful. Yes, we've already implemented that. As for other services, we're exploring those as well.
Currently, we're also operating on the NIC platform. We've already begun the process.

Shweta: We'll do a bit of a rapid fire now. I'll give you one word and I'll, I'm looking forward to your responses.

Shweta: Delimitation

Nara Lokesh: important. Good for the country.

Shweta: Okay. Zoho.

Nara Lokesh: Oh, amazing company, and I admire the founders.

Shweta: GST 2.0

Nara Lokesh: Great. For the country. It's going to kickstart the entire ecosystem.

Shweta: And

Nara Lokesh: I believe manufacturing will gain a lot.

Shweta: Nepotism,

Nara Lokesh: overplayed,

Shweta: dynasty politics.

Nara Lokesh: Why are politicians always criticized? When a doctor's child cannot be, can be a doctor or an engineer's child can be an engineer. What is wrong in a politician child? Being a politician end of day, I believe that a surname only opens the door. But then whether you have the right to be in that room or not, people decide.
Yeah. And in 2019, I lost an election. I contested in a seat where the TDP has not won since 1985, right?
I lost with 5,300 votes, but then I worked hard
And then I won it with 91,000 majority, which was one of the highest ever in Andhras history.
Let people decide whether the person belongs in the room or should be out.

Shweta: Rahul Gandhi,

Nara Lokesh: wait and watch.

Shweta: Andhra Pradesh.

Nara Lokesh: We'll lead India from the front.

Shweta: Delhi.

Nara Lokesh: Amazing. Exciting. It'll lead the way for the world.

Shweta: Donald Trump.

Nara Lokesh: Interesting times.

Shweta Punj
Shweta Punj is an award winning journalist. She has reported on economic policy for over two decades in India and the US. She is a Young Global Leader with the World Economic Forum. Author of Why I Failed, translated into 5 languages, published by Penguin-Random House.
first published: Oct 14, 2025 10:08 am

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347