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Is Bengaluru's time up? Andhra courts IT companies to shift from India's Silicon Valley amid infra woes

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Amid growing frustration over Bengaluru’s crumbling infrastructure, Andhra Pradesh has entered the spotlight as a potential alternative for multinational companies (MNCs). Nara Lokesh, General Secretary of the Telugu Desam Party (TDP) and a state minister, extended an open invitation to companies looking to move out of Bengaluru, pitching Andhra Pradesh as a destination with business-friendly policies and superior infrastructure. This appeal comes at a critical moment, as MNCs voice concerns over Bengaluru's poor drainage, traffic congestion, and mismanagement, especially following recent floods.

Bengaluru, India’s renowned tech hub, faced public outrage when several areas were submerged due to heavy rains, exposing the city’s inadequate infrastructure. Infosys CFO and prominent industry leader TV Mohandas Pai added to the criticism, warning that MNCs are considering relocating operations outside Bengaluru. He cited ongoing issues like blocked drains, crumbling roads, and severe traffic bottlenecks on the Outer Ring Road (ORR), an area home to several tech parks and global offices. Pai expressed disappointment with the Karnataka government’s inaction, pointing out that repeated promises by Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar remain unfulfilled.

Pai’s remarks struck a chord with many citizens on social media, who echoed similar frustrations. ORR commuters described the situation as a “daily nightmare,” lamenting the government’s neglect of Bengaluru’s infrastructure despite its status as a premier technology hub. Pai also urged city authorities to act swiftly by clearing debris from drains and initiating a large-scale cleanup to prevent future waterlogging, stressing the urgent need for visible progress on the ground.




In the wake of these concerns, Nara Lokesh seized the opportunity to position Andhra Pradesh as a solution for companies looking to weigh options outside India's Silicon Valley. Highlighting the state’s commitment to providing world-class infrastructure and streamlined business policies, Lokesh emphasized that Andhra views industries as key stakeholders in its development. He assured companies that Andhra offers not only ease of doing business but also a swift regulatory process, using the hashtags #SpeedOfDoingBusiness and #AndhraPradesh to underline the state’s proactive approach.

How Mohandas Pai responded to Nara Lokesh's post
However, Pai responded to Lokesh’s invitation with cautious skepticism, stating that Andhra Pradesh still has significant challenges to address. He referred to the decline in Andhra’s reputation under the previous state government, specifically criticizing the abandonment of Amaravati as the state’s capital. Pai pointed out that the damage caused by the previous administration needs to be reversed before the state can attract major investments. He emphasized that visible work in Amaravati would be essential to restore trust and build confidence among potential investors.

Pai also noted that Andhra faces challenges in terms of human capital, as relocating talent from other regions could be difficult without improving infrastructure and connectivity. He stressed the need for significant progress on these fronts,

Netizens weighed in on the debate, acknowledging Andhra's potential. They pointed out to Hyderabad’s transformation under former Chief Minister Chandrababu Naidu, who successfully positioned the city as a global business hub.
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