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New Delhi: Karnataka deputy chief minister DK Shivakumar on Tuesday announced ₹27,607 crore worth of new investments in the state, sparking renewed political and economic rivalry with neighbouring Andhra Pradesh. The announcement, made on social media platform X (formerly Twitter), came just hours after Andhra Pradesh IT Minister Nara Lokesh’s exchange with former NITI Aayog CEO Amitabh Kant over Google’s $15 billion AI data centre hub in Visakhapatnam. Karnataka reinforces its industrial dominance Posting on X, Shivakumar wrote, “Karnataka means business! ₹27,607 crore worth of new investments approved — creating 8,700+ jobs across 13 projects. We’re building a stronger economy, one bold step at a time. Powered by vision — backed by action.”The move underscores the state government’s push to sustain Karnataka’s image as India’s top destination for technology, manufacturing, and innovation. Officials said the approved projects span multiple sectors including electronics, semiconductors, renewables, and automotive manufacturing. Political undertones amid southern state competition The timing of Shivakumar’s post drew considerable attention, with many political observers interpreting it as a subtle counter to Andhra Pradesh’s recent celebrations over Google’s massive AI data centre investment. Hours before Shivakumar’s announcement, Amitabh Kant had praised Andhra CM N Chandrababu Naidu for securing “historic, marquee investments,” calling the Vizag AI hub “the beginning of a new wave of data infrastructure growth in India.”Kant’s post read, “The future of India’s digital economy will depend on attracting cutting-edge compute power and global hyperscalers.” Responding to him, Lokesh thanked the former NITI Aayog chief and attributed the success to “the entire AP government team and unwavering support from the Centre,” adding that “above all, our leader @ncbn’s leadership is turning bold ideas into billion-dollar realities.” Friendly fire between Karnataka and Andhra escalates The exchange comes amid weeks of competitive back-and-forth between Karnataka and Andhra Pradesh over their ability to attract global technology investments. Earlier this month, Nara Lokesh had taken a jibe at Shivakumar’s government, posting on X: “They say Andhra food is spicy. Seems some of our investments are too. Some neighbours are already feeling the burn.”Shivakumar had promptly responded, without directly naming Lokesh, saying, “There is no match for Bengaluru in terms of infrastructure, human resources, and innovation.” He further remarked that while Andhra’s investment offers were “concession-driven,” Bengaluru’s ecosystem “doesn’t need to advertise; its strength speaks for itself.” Bengaluru’s position as India’s tech hub Despite increasing competition from cities like Hyderabad and Visakhapatnam, Bengaluru continues to hold its ground as India’s premier technology hub. The city hosts over 40% of India’s IT exports and is home to several global innovation centres, startups, and R&D facilities.Industry experts note that while Andhra Pradesh’s efforts to attract hyperscaler investments have gained traction, Karnataka’s established ecosystem gives it a clear advantage. “Andhra is making an aggressive push for AI and cloud infrastructure, but Bengaluru remains the undisputed capital of tech talent and innovation,” said a Bengaluru-based IT industry analyst. Andhra eyes data economy boom Meanwhile, Andhra Pradesh is betting on its coastal cities, especially Visakhapatnam, to become the next major data economy centre. The $15 billion Google AI data centre hub is expected to transform the city into a digital infrastructure powerhouse. According to Nara Lokesh, the project will create thousands of jobs and attract several ancillary industries, strengthening Andhra’s pitch as a technology-friendly state. Karnataka’s next steps In the wake of Andhra’s high-profile deal, Karnataka’s new investment announcement serves as both a signal of confidence and a strategic reminder of its continuing dominance in India’s technology sector. Shivakumar has been vocal about diversifying Karnataka’s investment portfolio beyond Bengaluru, with newer industrial hubs being developed in Mysuru, Hubballi-Dharwad, and Tumakuru.“Karnataka continues to lead India’s growth story by blending industrial innovation with inclusive job creation,” he said in a follow-up statement. The friendly rivalry between Karnataka and Andhra Pradesh has injected new energy into India’s southern investment corridor, with both states competing to attract the world’s biggest technology players. Economists suggest that this competition could prove beneficial in the long run, accelerating digital infrastructure growth and regional employment.For now, however, Shivakumar’s ₹27,607 crore announcement reaffirms Karnataka’s resolve to defend its title as India’s tech and innovation powerhouse.
