Just an hour from Bengaluru, Andhra Pradesh IT Minister Nara Lokesh pitches 8,000 acres of prime land to aerospace firms after Karnataka’s U-turn on its own aerospace park proposal, highlighting a rising regional contest to attract high-value industrial investment, reported Hindustan Times. With uncertainty looming over Karnataka’s aerospace future, Andhra Pradesh has moved swiftly to offer an alternative.
The move comes after the Karnataka government shelved plans to acquire 1,777 acres near Devanahalli Airport for an aerospace hub, citing strong farmer resistance and escalating tensions over land acquisition. In response, Nara Lokesh publicly invited aerospace companies to consider Andhra Pradesh instead, promising investor-friendly policies and ready-to-use industrial land just across the border.
The Andhra Pradesh government, led by Chief Minister Chandrababu Naidu, has long identified aerospace and defence manufacturing as key growth sectors. Lokesh’s latest outreach reaffirms this commitment, offering an expansive 8,000-acre land parcel located within a short commute from Bengaluru. He called the opportunity a “better idea” for firms facing procedural hurdles or political uncertainty in Karnataka.
While Bengaluru remains the aerospace nerve center of India, hosting institutions such as HAL, ISRO, DRDO, Airbus, and Boeing, industry analysts acknowledge Andhra Pradesh’s aggressive push as a potential game changer. With land parcels close to the Karnataka border and a less confrontational land policy, Andhra may emerge as a strong option for firms seeking expansion without bureaucratic or social friction.
BJP MP Tejasvi Surya added political weight to Lokesh’s pitch by publicly applauding Andhra Pradesh’s proactive stance. He urged Karnataka to adopt a more consistent and business-friendly approach, pointing out that investor confidence hinges not only on infrastructure but also on long-term policy clarity.
The Andhra government has been working on dedicated aerospace and defence sector policies with incentives tailored to attract original equipment manufacturers (OEMs), tier-1 suppliers, and allied industries. This includes streamlined clearances, infrastructure support, and financial subsidies to lower the cost of doing business. By combining geographical proximity to Bengaluru with flexible governance, Andhra hopes to lure companies hesitant about the recent U-turn in Karnataka.
However, the competition is far from settled. Karnataka still leads in skilled talent, R&D ecosystems, and established supply chains. Critics of Andhra’s pitch argue that land and incentives alone cannot compensate for the lack of a mature industrial ecosystem, which often takes years to build.
For aerospace companies, this moment presents both risk and opportunity. On one hand, Karnataka’s reversal raises questions about the stability of state commitments; on the other, Andhra Pradesh’s open-door policy provides a real option for firms aiming to scale quickly. Several industry experts suggest a dual-strategy approach, with companies retaining R&D in Bengaluru while moving manufacturing or assembly lines to Andhra’s proposed zones.
Meanwhile, both states must grapple with political optics. While Andhra Pradesh is seen as being investor-forward, Karnataka’s government is under pressure to rebuild trust after backtracking on its commitment. The optics of losing industrial projects to a neighbouring state are not lost on its political leadership or voters.
As aerospace and defence sectors expand in India, especially under initiatives like ‘Make in India’ and Atmanirbhar Bharat, the competition between states to host strategic investments will only intensify. The current standoff between Andhra and Karnataka could serve as a case study in how state-level policy clarity, land management, and stakeholder engagement influence India’s industrial trajectory.
Photo Credit: HT
