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A Karnataka powered by many economic engines

Karnataka’s next chapter must be about creating several cities and regions in the State that can become strong economic centres in their own right

A Karnataka powered by many economic engines
A State’s development story cannot be the story of its capital alone. Bengaluru is indeed India’s pride and the city that has placed Karnataka on the global map. From Information Technology (IT), startups, aerospace and biotechnology to global corporations and new-generation entrepreneurs, Bengaluru has everything that makes it the pillar of India’s economy.

But when opportunities are concentrated in one city, so is the pressure. With a population of around 12.5 million and over 11.5 million vehicles, Bengaluru is already facing enormous pressure on its roads, housing and infrastructure. We need to change the pattern of people from rural areas and other cities migrating to Bengaluru in search of opportunities. This is why cities such as Delhi and Mumbai have developed alternative growth centres such as Gurugram and Noida, and Navi Mumbai and Thane, respectively.

The next steps being taken

Karnataka’s next chapter cannot depend on one city. It must create several cities and regions that can become strong economic centres in their own right. Taking investments beyond Bengaluru is not an alternative to strengthening Bengaluru; it is, alongside it, an economic strategy for balanced regional development, local employment, new investments, technology and better opportunities across Karnataka. Through Karnataka Digital Economy Mission (KDEM), key clusters including Mysuru, Mangaluru, Hubballi-Dharwad-Belagavi, Tumakuru, Kalaburagi and Shivamogga are being developed to take Karnataka’s digital and knowledge economy beyond Bengaluru.

If a young person can find a technology job in Mysuru, there is less need for him/her to move to Bengaluru. If a Global Capability Centre comes up in Mangaluru, employment can remain within coastal Karnataka. If advanced manufacturing grows across Hubballi-Dharwad-Belagavi, young people from North Karnataka can find opportunities closer home.

The process is already visible. In June 2026, 55 industrial projects worth ₹7,506 crore were approved, with the potential to create more than 28,000 jobs. Of these, 41 are planned outside Bengaluru Urban and Bengaluru Rural districts. In August 2026, another 83 projects worth around ₹6,253 crore were approved, of which 69 are planned outside Bengaluru, with the potential to create more than 30,000 jobs.

These are approved projects and projected employment figures, not completed investments. But they demonstrate that investment is increasingly being directed beyond Bengaluru. The Local Economy Accelerator Programme (LEAP) has been allocated ₹1,000 crore over five years to promote startups, entrepreneurship and emerging technology clusters beyond Bengaluru, with a target of creating five lakh employment opportunities.

Building around each region’s strengths

Under the 2026-27 Budget, LEAP Labs are proposed in Hubballi, Kalaburagi, Hoskote and Mysuru, along with a K-Combinator accelerator and stronger industry-academia linkages. Crucially, the aim is not to copy Bengaluru elsewhere. It is to build ecosystems around the distinct strengths of each region.

For instance, coastal Karnataka has strong foundations in ports, maritime connectivity, education, health care, banking, fisheries and tourism, along with a growing knowledge economy. The next step is to connect these strengths with technology and the digital economy. Similarly, Mysuru already has strong foundations in education, tourism and technology. The government has set the goal of developing it as Karnataka’s second IT city under the 2026-27 Budget. Mysuru should not be Bengaluru’s replacement; it should become another major technology and knowledge-economy engine for Karnataka.

The Hubballi-Dharwad-Belagavi cluster has strong foundations in engineering, manufacturing, education and entrepreneurship. It is being developed as an emerging cluster for Artificial Intelligence (AI), machine learning, Internet of Things and advanced manufacturing. Available KDEM data indicate more than 400 startups and over 80 funded startups in the cluster, with more than 4,500 jobs added. The next step is to build on this foundation through AI, data science, drones, electric vehicles (EV), Software as a Service (SaaS), agritech and advanced manufacturing. Tumakuru and Doddaballapura have been identified as an industrial node with the potential to attract around ₹7,000 crore in investment and create more than 88,000 jobs.

So, clearly, ‘Beyond Bengaluru’ does not mean giving every district the same development model. It means identifying each region’s strengths and building the right economic ecosystem around them.

The ‘Beyond Bengaluru’ model

The goal is also not simply to build IT parks or factories. Education, skills, health care, connectivity, housing and employment must grow together. When industries come, local Micro, Small, and Medium Enterprises (MSME) must benefit. When jobs are created, local youth must have the necessary skills. As cities expand, workers need quality housing, while their families need schools and health care. Tourism must create income for local communities.

That is why the ‘Live Near Work’ approach, with quality housing close to industrial areas, is important. Industry and human development are two parts of the same economic system. Agriculture must also be part of this transformation. Drones, satellite imagery, digital technology and AI can support crop surveys, crop-health assessment, pest and disease monitoring and real-time agricultural intelligence. Value addition, food processing and stronger supply chains can further strengthen rural economies.

This ‘Beyond Bengaluru’ model is one that spreads Bengaluru’s success across Karnataka. Bengaluru should remain the crown of Karnataka. But the brilliance of that crown must be visible in every district. It means taking the success of Bengaluru and creating new centres of success across the State — a Karnataka powered by many economic engines.

D.K. Shivakumar is the Chief Minister of Karnataka

The Hindu Verified Source

Reported by D.K. Shivakumar · Syndicated via official news feed

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