Karnataka vs Andhra

This is a sub-plot of a larger narrative of states fiercely competing for investments

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The face-off between Karnataka and Andhra Pradesh to attract aerospace companies exemplifies the fierce competition between states to attract foreign and domestic investments. This should be welcomed provided it does not entail a subsidy race to the bottom that seriously strains their finances. This spat is reminiscent of Maharashtra's angst over losing out to Gujarat for a big-ticket semiconductor facility a few years ago. Karnataka similarly is miffed by Andhra's invitation to aerospace companies to consider shifting their operations as plans for a proposed park near Bengaluru's Kempegowda International Airport ran into land acquisition problems from protesting farmers. Andhra's minister for human resources development, information technology and real-time governance, Nara Lokesh—who is also the son of the chief minister—indicated that 8,000 acres of ready-to-use land just outside Bengaluru was available, besides an attractive aerospace policy with best-in-class incentives. Karnataka accused Andhra's minister of fishing in troubled waters and declared that not a single industry will move out of