Big bucks for Bangalore

Bangalore:The preferred destination for investors

By Habib Beary in Bangalore

The southern Indian state of Karnataka has attracted billions of dollars worth of foreign investment.

At the end of a two-day global investors conference the Karnataka Government says it has attracted deals worth about $1.7bn.

Prominent among the long list of overseas investors is News Corporation, owned by media tycoon Rupert Murdoch.

On Tuesday the state government officially welcomed a Newscorp announcement that it was setting up a digital software facility in Bangalore for its global networks.

SM Krishna has been wooing investers

The Newscorp investment includes the construction of a television studio in what has become known as the Silicon Valley area of Karnataka.

Chief Minister SM Krishna told the BBC that the state had re-established its leadership as India's top state for overseas investment.

Rival neighbours

His comments are almost certain to re-ignite Karnataka's ongoing struggle with the neighbouring state of Andhra Pradesh as India's top location for high-tech businesses.

Both Mr Krishna and Andhra Chief Minister, Chandrababu Naidu, have been successful over the last few years in attracting foreign investment.

It is no doubt with this rivalry in mind that Mr Krishna described the announcement by Murdoch and other foreign investors as an epoch-making event.

That may be a claim that is somewhat exaggerated, but the Karnataka conference has successfully showcased the state as one of the main destinations for global investors in India.