The funding got here on the heels of a string of main offers, together with Google’s $15 billion strategic funding to determine India’s first Synthetic Intelligence hub in Visakhapatnam—a transfer that drew sharp criticism from Karnataka, which has positioned Bengaluru because the nation’s tech capital.

However maybe what’s prompted most consternation is a few corporations from Tamil Nadu, Karnataka and Telangana have shifted to Andhra Pradesh.

Andhra Pradesh says its proactive actions, incentives, and speedy approvals are among the many components driving corporations from the neighbouring states to its doorways. Nonetheless, Karnataka and Tamil Nadu say the incentives and land parcels provided by Andhra Pradesh are unsustainable for his or her states.

Chief Ministers Siddaramaiah in Karnataka, M.Ok. Stalin in Tamil Nadu and Revanth Reddy in Telangana have all come underneath Opposition fireplace “dropping out to Andhra Pradesh” in three key tasks.

Final week, in a serious blow to Tamil Nadu, South Korean footwear producer Hwaseung —the provider for international manufacturers like Adidas and Reebok—determined to shift its Rs 1,720 crore non-leather footwear manufacturing facility, its first manufacturing base in India, from Thoothkudi in Tamil Nadu to Kuppam in Andhra Pradesh.

In March this 12 months, Hyderabad-based Premier Energies introduced the relocation of its proposed 4 GW photo voltaic photovoltaic cell manufacturing facility, with an funding of about Rs 1,700 crore, from Seetharampur in Telangana to Naidupeta in Andhra Pradesh.

As Premier Energies relocated its undertaking to Naidupeta Industrial Park in Nellore—increasing it to a Rs 5,942-crore photo voltaic manufacturing funding—IT and Electronics Minister Nara Lokesh took to X to speak about “the velocity with which AP bought it carried out”.

“AP fast-tracked 269 acres via APIIC in file time. Talks started in Oct 2024 & land allotted by Feb 2025. The parcel is backed by ports proximity and proactive incentives,” CM Naidu’s son said on X.

He added a video of Premier administrators vouching for the hands-on strategy, good infrastructure created and handholding by the state equipment.

#PE_ChoosesAP #ChooseSpeedChooseAP
Telangana-based #PremierEnergies selected #AndhraPradesh for a ₹5,942 crore photo voltaic manufacturing funding, to be arrange in Naidupeta Industrial Park, Nellore. The undertaking features a 4 GW TOPCon photo voltaic cell unit with a 5 GW silicon ingot and… pic.twitter.com/QmU32mKmkG

— Lokesh Nara (@naralokesh) November 7, 2025

---

Additionally Learn: What’s a flying taxi? Andhra Pradesh’s ‘Sky Manufacturing unit’ can change commuting in India

---

Political uproar

However the investments have sparked political uproar in neighbouring states.

When Google introduced its “greatest funding” outdoors the US in Andhra Pradesh’s Visakhapatnam, the Karnataka BJP questioned Info Expertise Minister Priyank Kharge’s “functionality to draw such investments”.

The Congress minister advised reporters the Opposition was conveniently ignoring the truth that Andhra Pradesh was giving Google an “incentive value Rs 22,000 crore, 25 p.c subsidy on land, 25 p.c subsidy on water, free electrical energy and a 100% reimbursement of state GST”.

He went on to query whether or not “the state can afford this”.

Hwaseung’s shift from Tamil Nadu to Andhra Pradesh additionally prompted a political firestorm within the DMK-ruled state, as BJP chief Ok. Annamalai blamed it on CM Stalin and his industries minister’s “deep slumber, because the investments they proudly introduced are transferring to neighbouring states”.

“In lower than 3 months, Hwaseung has now determined to take this funding to Andhra Pradesh. At a time when different states are transferring swiftly to draw international manufacturing, Tamil Nadu is dropping floor because of complacency and administrative apathy. From being a land of alternatives, DMK has reworked TN right into a land of missed alternatives,” Annamalai mentioned in a put up on X.

Tamil Nadu Industries minister T.B.R. Rajaa responded saying, “Whereas some governments have the posh of giant tracts of arid lands others have excessive worth land that may’t be casually given away with out guaging the result of the incentives vis a vis worth of jobs being created. We may also at no level be part of a race to the underside in the case of providing unrealistic packages.”

Funding promotion shouldn’t be an everyday on a regular basis sport. It is about balancing the states want for sure sectors, the roles that can get created, incentives being given in line with the world through which the funding is anchored and many others. Our Chief Minister Thiru @mkstalin and his purpose for…

— Dr. T R B Rajaa (@TRBRajaa) November 15, 2025

Opposition leaders allege the Narendra Modi authorities on the Centre is steering corporations to spend money on states dominated by the BJP or its allies, comparable to Andhra Pradesh, which is headed by the second-biggest social gathering within the Nationwide Democratic Alliance (NDA), the Telugu Desam Celebration (TDP).

Final month, Kharge mentioned that his state homes “38-40 p.c of the nation’s tech expertise”, alleging that Narendra Modi-led central authorities has been sending away corporations to locations with none ecosystems.

“It is vitally clear that the central authorities is arm-twisting, poaching corporations and diverting them to states the place there are not any ecosystems, and locations that require, not less than, 5 to 10 years extra to construct an ecosystem,” he advised ThePrint.

“If they’re actually serious about getting issues carried out, locations like Bengaluru, Telangana, and Tamil Nadu are the pure decisions from an funding perspective.”

He has doubled down on his allegations that the Modi-led union authorities was pushing buyers away from non-BJP-ruled states.

Kharge advised ThePrint that this was occurring throughout sectors.

“Whereas some corporations submitted in writing to the Centre choosing Karnataka and Tamil Nadu, how are they lastly establishing store elsewhere. How is that this occurring?” he mentioned.

Final month, Nara Lokesh took a agency stand on attracting investments to Andhra Pradesh, saying, “If different states are inefficient, what can I do?”

He urged them to concentrate on fixing points like pothole-ridden roads and energy cuts. Highlighting Andhra’s growth mission, he added, “We’re the one double-engine bullet practice authorities in India, working to make the state and the nation proud.”

ThePrint reached out to Lokesh for touch upon WhatsApp, however didn’t obtain a response. This report might be up to date if and when he responds.

Each Naidu and Lokesh thanked Modi profusely when Google introduced its $15 billion funding in Andhra Pradesh final month.

Talking on the event, Lokesh mentioned that Google’s Vizag information centre turned doable with the assist of Prime Minister Narendra Modi.

When the opposition AIADMK in Tamil Nadu focused the ruling DMK, saying that Sundar “Pichai, a Tamilian nonetheless selected Andhra”, Lokesh responded saying, “He selected Bharat”.

Andhra officers say that going by the motivation logic, corporations ought to be going to Odisha, Uttar Pradesh and Maharashtra first, “as these states supply the best industrial subsidies within the nation.”

“Nearly all of the industries these days interact consultants who analyse the state of affairs, alternatives in numerous states and supply them recommendation based mostly on which the respective state governments are approached,” N. Yuvaraj, secretary of the Andhra Pradesh Industries division, advised ThePrint.

“Some companies additionally cut price for higher incentives like one photo voltaic cell agency is presently evaluating the advantages provided by each Odisha and us to resolve on its plant location,” he added.

Locational benefits are additionally driving funding from neighbouring states to Andhra Pradesh.

AP officers say that the state has enormous tracts of cheaper land for industrial use which might be strategically situated near the economic hubs of Bengaluru and Chennai.

Anantapuram district in south Rayalaseema, as an example, is nearer to Bengaluru than locations like Mysore and Tumkur in Karnataka. Equally, Sri Metropolis, Nellore and Kuppam aren’t removed from Chennai, an vehicle and manufacturing hub, the place land is much costlier.

Because of this, whereas Bengaluru has a strong defence and aerospace ecosystem, companies searching for reasonably priced land want to go to Anantapuram as a substitute.

Andhra Pradesh officers cite the instance of Agneyastra Energetics—integrated via Bharat Forge’s wholly-owned subsidiary, Kalyani Strategic Methods—which signed an settlement with the Andhra Pradesh Industrial Infrastructure Company to amass a 950-acre land parcel in Madakasira in Anantapur district at about Rs 7 lakh per acre.

For now, Andhra Pradesh appears to have an edge with NDA ally Naidu within the driving seat and its locational benefit. Will the neighbouring southern states be capable to match Andhra Pradesh and entice buyers?

With inputs from Sharan Poovanna

(Edited by Sugita Katyal)

---

Additionally Learn: Naidu matches Jagan’s Rs 13L crore funding playbook, with a ‘velocity of doing enterprise’ caveat

---