Monday, January 05, 2026 | 02:00 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Aerospace turf war: Andhra, Karnataka lock horns to attract investment

States clash after Karnataka scraps farmland plan; Andhra pitches 8,000 acres

In Picture: (L) Nara Lokesh Human resources minister, Andhra Pradesh and (R) M B Patil, Large and medium industries minister, Karnataka
premium

In Picture: (L) Nara Lokesh Human resources minister, Andhra Pradesh and (R) M B Patil, Large and medium industries minister, Karnataka

Shine Jacob Chennai

Listen to This Article

Two southern Indian states—Karnataka and Andhra Pradesh—are locked in a public face-off to attract aerospace investment, at a time when the sector is projected to double in value in India, from $27.1 billion today to $54.4 billion by 2033. 
The social media contest started after Karnataka on Tuesday dropped its plan to acquire 1,777 acres of farmland in 13 villages of Devanahalli, near Bengaluru’s Kempegowda International Airport, for a proposed aerospace park. The decision followed 1,198 days of sustained protests by local farmers. Wasting no time, Andhra Pradesh’s Human Resources Minister Nara Lokesh, also son of Chief Minister N Chandrababu Naidu, publicly invited aerospace companies to consider shifting operations to his state. 
In a direct appeal to aerospace investors on X, Lokesh posted: “Dear Aerospace industry, sorry to hear about this. I have a better idea for you. Why don't you look at Andhra Pradesh instead?” 
“We have an attractive aerospace policy for you, with best-in-class incentives and over 8,000 acres of ready-to-use land (just outside Bengaluru)! Hope to see you soon to talk across the table,” he further said. Later, speaking to the media, Lokesh offered further inducements, including land for as little as ₹1 per acre, citing recent deals struck with information technology companies. 
Karnataka fired back the following day. “I will respond to Andhra Pradesh Minister Nara Lokesh at an appropriate time. He thinks he can fish in troubled waters. However, our waters are calm,” said M B Patil, Karnataka’s Minister for Large and Medium Industries. “Not a single industry will move out of Karnataka due to land shortage. I won’t let a single industry leave.” 
Currently, Karnataka accounts for 65 per cent of India’s aerospace and defence sector, according to media reports. But Andhra Pradesh is pushing hard to compete. Its recently unveiled aerospace policy aims to attract investment worth ₹1 trillion (around $12 billion) over the next five years. The plan features dedicated manufacturing corridors across the state: Visakhapatnam–Srikakulam for naval systems, Jaggaiahpet–Donakonda for missile production, Kurnool–Orvakal for drone technologies, and Lepakshi–Madakasira for aerospace electronics. Tirupati is also being pitched as a research and development hub, centred around a proposed DRDO Centre of Excellence. 
The BJP, which sits in Opposition in Karnataka, also jumped into the fray. “This is how business is attracted, industry is welcomed and jobs are created. Hope Karnataka Govt learns from @naralokesh garu and corrects its course,” BJP MP Tejasvi Surya posted on X.