Karnataka’s Information Technology and Biotechnology Minister, Priyank Kharge, has sharply criticized the incentive package offered by Andhra Pradesh to attract Google’s $15 billion data center and AI hub in Visakhapatnam. Kharge described the package, reportedly valued at ₹22,000 crore, as an “economic disaster,” questioning the sustainability of such extensive subsidies and waivers. He expressed concerns that such incentives might not be economically viable in the long term.
In contrast, Andhra Pradesh’s IT Minister, Nara Lokesh, defended the state’s approach, highlighting the strategic use of incentives to attract significant investments. Lokesh emphasized that the state’s efficient governance and infrastructure improvements were key factors in securing the deal with Google. He also pointed out that Andhra Pradesh had already attracted over $120 billion in investments, showcasing the effectiveness of its policies.
The debate intensified as the opposition Janata Dal (Secular) (JD(S)) in Karnataka criticized the state government’s handling of infrastructure issues in Bengaluru, suggesting that such shortcomings contributed to the loss of the Google project to Andhra Pradesh. The JD(S) pointed to problems like poor road conditions and inadequate urban planning as factors that deterred investment.
This development underscores the ongoing competition between states in India to attract major investments in the technology sector. While Andhra Pradesh’s incentive-driven approach has garnered attention, it also raises questions about the long-term economic implications of such substantial subsidies. The situation reflects the broader challenges faced by Indian states in balancing attractive investment packages with sustainable economic policies.