'Karnataka Investors Summit not a roaring success': Mohandas Pai blasts Siddaramaiah, urges him to fix Bengaluru

Former Infosys CFO Mohandas Pai has criticised the Karnataka government, calling the Global Investors Meet "not a roaring success", and accusing the administration of ignoring Bengaluru's worsening infrastructure. 

"The government tried very hard. The minister traveled all over the world and tried to get people to come, but I think the response was very lukewarm," Pai said in an interview with ThePrint. He compared Karnataka's ₹10.27 lakh crore investment commitments to other states, stating, "Madhya Pradesh got ₹25 lakh crore. Gujarat got something. I wouldn’t go by the total commitment; I would go by the kind of jobs that have been created. Even on the job front, I think they need to do more."

Pai warned that Karnataka’s brand equity has taken a hit, with global investors expressing concern over the state's capital. "Wherever I travel, people ask me what is happening to Bengaluru. Why is the government ignoring Bengaluru? Why such a high level of corruption? The chief minister’s indifference over the last two years is costing Karnataka heavily," he said.

‘Bengaluru is key, but mismanaged’

Pai noted that Bengaluru remains the top choice for investors due to its massive talent pool. "Bengaluru has 25 lakh people in software, 65,000 IT companies, and 15,000-20,000 startups. California has only 15 lakh people in software. That’s why people come here," he said.

However, he cautioned that infrastructure issues were driving frustration among residents and businesses. "The pain point of people living in Bengaluru is increasing. If you spend 3-4 hours in traffic daily, your productivity is gone. IT employees are complaining. Our Metro is three years behind schedule. The work is very slow, they didn’t order enough trains, and now commuters have to bear the burden of mismanagement," Pai said.

He slammed the 100%-120% fare hike on the Bengaluru Metro, calling it insensitive and poorly planned. "You can’t raise fares like that in one shot. I told them not to increase it beyond 35-40%. Now, 1-1.5 lakh people have stopped using the Metro, and pollution has increased because more people are taking two-wheelers instead," he added.

‘Govt is focused only on freebies’

Pai accused the government of prioritising freebies over economic growth, stating, "The biggest priority for Karnataka should be high-quality jobs for young people. And what is the Chief Minister doing about this? Nothing." He claimed that ₹56,000 crore was being spent on freebies in a single budget, while capital expenditure had remained stagnant for three years. "₹1 lakh crore of subsidies is being paid out. The revenue deficit is around ₹20,000-₹25,000 crore. There’s no money for development," he said.

The former CFO warned that the state government must act fast to restore Bengaluru’s reputation, which is critical for Karnataka’s economy. "Bengaluru is the biggest economic engine for Karnataka. 60% of the state's taxes come from here, 50-55% of its GDP is generated here. If you don’t invest in Bengaluru, what do you expect?" he asked.

Pai insisted that "we want more jobs for young people, and that won’t happen unless the government focuses on fixing Bengaluru first."