Karnataka, the southern state that hosts India’s undisputed tech capital, Bengaluru, is at the cusp of a significant economic and geographic transformation. For decades, the “Silicon Valley of India” has been the singular engine driving the state’s digital economy, leading to incredible growth but also to challenges like urban congestion and infrastructure strain. In a strategic push to decentralize this prosperity, the state government, through the ‘Beyond Bengaluru’ initiative led by the Karnataka Digital Economy Mission (KDEM), is systematically nurturing Tier 2 and Tier 3 cities to emerge as credible, specialized technology hubs. This move is not merely about replicating Bengaluru’s success but about fostering unique, localized ecosystems that leverage regional strengths, creating a more balanced and resilient statewide digital economy.
The Rise of Mysuru: Karnataka’s Second Tech Pillar
Among the emerging clusters, Mysuru stands out as the most advanced and successful example of this decentralization strategy. Its inherent advantages—a high quality of life, rich educational heritage, and proximity to Bengaluru—have positioned it as a frontrunner. The city is rapidly evolving into a hub for DeepTech R&D, Electronics System Design and Manufacturing (ESDM), and the establishment of Global Capability Centres (GCCs) and nano-GCCs. Mysuru is already the state’s second-largest IT exporter, and with a strategic focus on attracting investments in the semiconductor and cybersecurity sectors, it aims to contribute significantly to Karnataka’s ambitious $300 billion digital economy target by 2030.
The city is actively developing an ecosystem to support this growth. The 235.5-acre Electronics Manufacturing Cluster (EMC 2.0) at Kochanahalli is a clear indication of the state’s commitment to ESDM. Furthermore, Mysuru’s burgeoning cybersecurity cluster is leveraging its academic institutions to excel in research, development, and innovation, attracting specialized companies and professionals. This concerted push towards advanced manufacturing and niche technology services is paving the way for Mysuru to become a truly diversified and sustainable technology powerhouse.
Mangaluru: The Fintech and Coastal Innovation Corridor
On the western coast, Mangaluru is carving out a niche for itself as the “Silicon Beach of India.” This city’s strength lies in its exceptional educational institutions, which provide a ready supply of high-quality talent, particularly in IT, FinTech, and allied services. The coastal city’s unique position, with a major port and excellent connectivity, makes it ideal for industries requiring logistical access and a strong knowledge base.
Mangaluru has been identified as a major FinTech cluster, with the government actively supporting the growth of startups in this domain to drive digital transformation in financial services and promote financial inclusion. The region boasts a significant existing IT presence and is currently witnessing the development of new, Grade-A technology parks under the Public-Private Partnership (PPP) model, a key component of the Local Economic Acceleration Programme (LEAP). The availability of a strong talent pool, coupled with the city’s comparatively lower operational costs and a superior work-life balance near the coast, is attracting major technology firms to expand their base here. This dynamic growth is set to substantially increase the local IT workforce, transforming the city into a vibrant innovation corridor on the country’s western seaboard. The development of infrastructure like the airport runway expansion and improved expressways will further cement Mangaluru’s role as a major tech hub.
Hubballi-Dharwad-Belagavi: Corridor for Emerging Technologies
The Hubballi-Dharwad-Belagavi (HDB) cluster in North Karnataka is emerging as a corridor dedicated to advanced manufacturing and cutting-edge digital technologies. This region is strategically positioned to become a hub for Artificial Intelligence (AI), Machine Learning (ML), IoT (Internet of Things), and advanced manufacturing. Belagavi, in particular, is being developed as an Engineering Tech hub, leveraging its industrial base and engineering colleges.
The government’s focus is on developing robust infrastructure and providing targeted support through initiatives like the Cluster Seed Funds to stimulate local innovation and entrepreneurship. The presence of premier educational institutions and a supportive ecosystem, including industry associations and incubators, is helping to cultivate a talent pipeline proficient in future-ready digital skills. By clustering these emerging technologies in the HDB region, Karnataka is not only decentralizing IT but is also ensuring that the growth is aligned with global trends in smart manufacturing and Industry 4.0. This diversification into complex, high-value sectors promises to generate substantial high-quality employment opportunities and anchor the region firmly on India’s technology map.
Strategic Imperatives and the Focus on ಆರೋಗ್ಯ (Aarogya)
The success of the ‘Beyond Bengaluru’ mission hinges on several strategic imperatives: robust infrastructure development, a continuous supply of skilled talent, and supportive government policies. The state is actively working on all fronts, including fast-tracking IT park construction, offering incentives for companies to set up in Tier 2 cities, and collaborating with academic institutions to align curricula with industry needs.
A key area where these new tech hubs are expected to make a significant impact is in the Healthcare (ಆರೋಗ್ಯ) sector. The distributed model of technology growth allows for the development and deployment of specialized tech solutions closer to the end-users. Mysuru and Mangaluru, with their strong existing medical and educational infrastructure, are uniquely positioned to become centres for HealthTech innovation. This includes developing software for efficient hospital management, AI-driven diagnostics, telemedicine platforms to serve remote rural areas, and technology-enabled medical devices (MedTech). By leveraging AI, IoT, and data analytics capabilities being nurtured in the HDB cluster, Karnataka can spearhead digital transformation in public and private healthcare. This focus on Aarogya is a direct way for the state’s burgeoning tech industry to address critical societal needs, moving beyond commercial IT services to create impactful, life-changing applications. It positions the emerging hubs as creators of solutions for a more equitable and technologically advanced healthcare delivery system, proving that decentralized growth can also drive social progress.
Conclusion: A Balanced and Resilient Future
The journey Beyond Silicon Valley is a testament to Karnataka’s long-term vision for a geographically balanced and economically resilient future. By fostering specialized clusters in Mysuru, Mangaluru, and the Hubballi-Dharwad-Belagavi region, the state is strategically mitigating the risks associated with over-concentration and unlocking the vast, untapped potential of its hinterland. This paradigm shift—from a single-city dominance to a multi-city tech network—promises to broaden the base of the digital economy, generate large-scale employment across different regions, and ensure a higher quality of life for tech professionals. Karnataka is building a new, decentralized model for India’s technological future, where every major city contributes a unique strength to the national digital narrative, cementing its status not just as the leader of India’s tech growth, but as an architect of inclusive economic prosperity.