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Karnataka has long been at the forefront of the innovation and technology economy. In fact, it dominates India’s Global Capability Centre (GCC) landscape, attracting around US$51.03 billion in FDI between 2019 and 2024. While Bengaluru remains the poster child of India’s tech landscape, home to over 875 GCCs, the state government is now pushing for more balanced, inclusive growth through its ‘Beyond Bengaluru’ initiative.

When the Karnataka Digital Economy Mission (KDEM) announced last month its ambitious goal to turn Mysuru into a US$10 billion digital economy by 2030—creating over 1.5 lakh digital jobs—it sent a clear signal: the state is serious about transforming its tier-2 cities into emerging innovation hubs.

IT-services major Infosys on Wednesday announced the launch of the Infosys Center for Advanced AI, Cybersecurity, and Space Technology at its Hubballi Development Center. This state-of-the-art facility marks a significant step in strengthening the city’s position as a growing hub of innovation. 

The new center is part of ‘Infosys Living Labs’, a global network of over 12 established centers designed to help clients accelerate innovation and leverage emerging technologies. It will serve global clients across industries including manufacturing, financial services, retail and healthcare.

With over 1,000 professionals operating from the Hubballi campus, Infosys is investing heavily in local talent and infrastructure. The company is also deepening its collaboration with institutions such as IIIT Dharwad and KLE Tech to drive research and innovation. 

With large corporations and strong academic and startup ecosystems, cities like Hubballi-Dharwad-Belagavi, Mangaluru, Mysuru, Kalaburagi, Tumakuru and Shivamogga are becoming prime candidates for the next big frontier of tech expansion in the state. Let’s take a closer look.

Hubballi-Dharwad-Belagavi (HDB): The cluster is a major industrial hub attracting sectors like automobile, SaaS, edtech, agritech, and AVGC (Animation, Visual Effects, Gaming, and Comics). Its strong connectivity to major metro cities like Chennai, Bengaluru, and Mumbai via road, along with the presence of an airport, ensures seamless logistics. The region is a talent powerhouse, boasting 30 engineering colleges and 20 MBA colleges, including prestigious institutions like IIT Dharwad, IIIT Dharwad, and Visvesvaraya Technological University, which together produce over 35,000 graduates annually.

Mangaluru: Emerging as a prominent fintech and industrial hub, Mangaluru offers robust digital infrastructure that makes it a prime location for Global Capability Centers (GCCs). The city’s impressive educational ecosystem, comprising 20 engineering and 15 medical colleges, supports a large student population of 60,000, guaranteeing a steady supply of a diverse and skilled workforce.

Mysuru: This city uniquely blends cultural heritage with a dynamic business environment. Mysuru is becoming a promising destination for GCCs, with strong growth in the IT/ITeS, Semiconductor, and Cybersecurity sectors. Its rich presence of renowned educational institutions ensures a continuous influx of skilled professionals.

Tumakuru: Located just 70 km from Bengaluru, Tumakuru is a crucial industrial gateway to northern Karnataka and a vital part of the Chennai-Mumbai Industrial Corridor. Its focus on food processing and manufacturing industries provides ample opportunities for businesses looking to expand their footprint.

Shivamogga: A promising location for Spacetech, offering a strategic advantage with its proximity to neighboring hubs. Davanagere is a global center for nutraceuticals, agro-processing, and textiles; Chikkamagaluru is known for its plantations; and Hassan houses the master control facilities for ISRO. The recent inauguration of the Shivamogga airport, combined with strong road links, further enhances its connectivity and growth potential.

Kalaburagi: This industrial cluster is rapidly growing as a cement and startup hub, home to more than 250 startups. Kalaburagi’s economy is diversified with a strong presence of industries such as agro-food processing, petrochemicals, thermal power, textiles, steel, and power.

Karnataka’s economic vitality extends far beyond Bengaluru. The development of diverse industrial and innovation hubs—each with unique strengths, from robust talent pipelines and strategic connectivity to specialized sector focuses—collectively positions the state as a dynamic and multifaceted economic powerhouse. By leveraging these regional advantages, Karnataka is not only fostering balanced growth but also unlocking a wide range of opportunities across a diverse and expanding economic landscape.