The statue of Kempegowda, the 16th-century local leader who founded Bengaluru, was unveiled by Indian Prime Minister Narendra Modi (Bangalore).
The 33m (108ft) bronze statue weighs 220 tonnes and is located at the international airport in the southern Karnataka state’s capital city.
According to media reports, the statue cost 850 million rupees ($10.5 million; £8.9 million).
The state government set aside 1 billion rupees for the statue and a theme park in 2019.
According to a state minister, the statue will be called “the statue of prosperity” to reflect Bengaluru’s progress.
The city is known as “India’s Silicon Valley” because it is home to some of the country’s largest IT companies and start-ups.
The inauguration of Kempegowda’s statue comes months ahead of assembly elections in the state.
Political analysts say the event is an attempt by the governing Bharatiya Janata Party (BJP) to woo the upper-caste Vokkaliga community, to which Kempegowda belonged.
The Vokkaligas are dominant in the state’s Old Mysore region – which covers eight districts, including Bengaluru. While the BJP has won elections from this area, opposition parties Congress and Janata Dal (Secular) still have an upper hand here.
Kempegowda is a hugely revered figure in Karnataka. He was part of the Vijayanagar empire, which ruled parts of southern India from the 14th Century to early 17th Century.
According to historian Suryanath Kamath, there is evidence of him ruling over areas that include present-day Bengaluru from 1513 to 1569.
But others say they have unearthed evidence that he was alive until 1608.
“Much about Kempegowda is known from folklore rather than epigraphy,” says Prof M Jamuna, former chair of history at Bangalore University.
Prof Jamuna said research had established that Kempegowda was “not the big moustachioed warrior with a sword and a shield as he is presented in statues nowadays”.
“He did fight wars but he was known to be a diplomat who worked to bring about peace among local chieftains,” he added.