Karnataka Minister Parameshwara assures aerospace investors the state will retain them despite Andhra Pradesh’s 8,000‑acre land offer near Bengaluru.

Karnataka Minister Assures Aerospace Firms Won’t Slip Away Despite Andhra’s Lucrative Land Offer

Andhra pitches 8,000 acres; Karnataka promises alternative sites

Date: July 16, 2025

Facing a new challenge from neighbouring Andhra Pradesh, Karnataka’s Industries Minister G. Parameshwara has dismissed fears about losing aerospace investment, pledging that the state will secure space for firms within its own borders.

Andhra’s Land Offer Sparks Inter‑State Aerospace Rivalry

Following the Karnataka government’s decision to shelve its ambitious plan to acquire 1,777 acres in Devanahalli for an aerospace hub—after protracted farmer protests—Andhra Pradesh seized the moment. IT & HRD Minister Nara Lokesh publicly invited aerospace investors to AP, touting attractive policies and 8,000 acres of “ready-to-use” land just over 80 km from Bengaluru.

His combative message on X read:

“Dear Aerospace industry, sorry to hear about this. […] We have an attractive aerospace policy … over 8,000 acres of ready-to-use land (just outside Bengaluru)! Hope to see you soon to talk across the table.”

The proposal drew praise from BJP MP Tejasvi Surya, who applauded Andhra’s business-first approach

Karnataka Replies in Kind—Won’t Let Investors Slip Through Its Fingers

In response, Minister G. Parameshwara emphasized that Karnataka remains fully capable of providing land and will not allow aerospace investment to migrate:

“If we are not able to give land in Devanahalli, we will give it at some other place. We will definitely not let the other investors go to other states, such as Andhra Pradesh, Maharashtra, and Tamil Nadu.

The sentiment was echoed by Industries Minister M.B. Patil, asserting Karnataka is home to 65% of India’s aerospace output and ranks third globally — a robust ecosystem that transcends mere land availability. He emphasized:

“Not a single industry will move out of Karnataka due to land shortage. … Land will be provided to industrialists wherever they need it.”

1. Investor Confidence

Companies weigh not just land, but also policy stability, infrastructure, talent pools, and established ecosystems. Karnataka boasts decades of aerospace and defence credentials.

2. Regional Competition

Andhra’s bold move comes amid its broader industrial push—rolling out aerospace and space policies, proposing “Space Cities” near Tirupati and Sriharikota, and courting halops from HAL. Karnataka is responding vigorously to protect its lead.

3. Political Messaging

While Andhra uses its offer to highlight its pro-business stance, Karnataka counters with a show of resolve—not giving up easily in the face of external overtures.

• Karnataka plans voluntary land acquisition efforts elsewhere in the state, offering more favourable terms to landowners.
• Andhra Pradesh, meanwhile, stands ready to host new aerospace units and leverage its proximity to Bengaluru for strategic advantage .
• Investors could watch both states closely, weighing Andhra’s incentives and land availability against Karnataka’s infrastructure and ecosystem maturity.

The aerospace investment standoff between Karnataka and Andhra Pradesh is much more than a land dispute—it is a strategic tussle rooted in ecosystem strength, state ambition, and industrial leadership. While Andhra’s offer is seductive, Karnataka remains confident that its entrenched advantages and quick pivot strategies will keep aerospace businesses grounded firmly within its borders.

Tags: Karnataka aerospace | Andhra Pradesh offer | land acquisition | inter-state investment

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