I have a hard time believing that your team who were mostly from Kerala asked you not to set up a development centre there, as IT is pretty immune to militant trade unionism. A lot of companies have development centres in Trivandrum, some were set up more than twenty years ago.
I don't disagree that Kerala was known for being rather unfriendly to big industries, but things are changing. The Union Ministry of Commerce and Industry ranked Kerala at the top in 2024 for "Ease of Doing Business Reforms".
https://www.newindianexpress.com/states/kerala/2024/Sep/06/e...
As for the clothes manufacturer, I believe you are talking about Kitex. They didn't go anywhere and their factories are still there in Kerala. They did set up a new factory recently in Telengana though, which, along with the rest of the company, is going through a rough phase now because of Trump's tariffs.
Believe whatever you want, it's a free country.