In a major push to strengthen its technology ecosystem, Karnataka has announced plans to set up 500 new global capability centres (GCCs) by 2029. The move is expected to generate around 3.5 lakh jobs and contribute nearly $50B to economic output.
The announcement was made by Chief Minister Siddaramaiah during the state budget presentation. Karnataka already hosts 550+ GCCs, making it one of India’s leading hubs for multinational captive centres. The new plan aims to expand this ecosystem beyond Bengaluru, long seen as the country’s primary tech hub.
Karnataka building its IT infrastructure
The strategy aligns with the state’s focus on developing infrastructure outside the capital. The Karnataka State Electronics Development Corporation is planning a new IT park in Mangaluru. The goal is to attract global companies and support the growth of GCCs.
Early success is already visible in smaller cities. In Mysuru, nearly 100 IT companies employ more than 30,000 people. The Chief Minister highlighted the potential of Tier-2 cities to attract future technology investments as companies look to reduce costs and access talent.
Industry experts note that MSMEs now account for over half of India’s GCC ecosystem. Smaller innovation-driven centres, often called “nano GCCs”, are also rising in Karnataka. These centres are typically based in developing cities and help companies without strong in-house R&D capabilities.
Mysuru to become startup laboratory
The push for decentralisation also reflects growing demand from academia and industry to strengthen regional innovation hubs. Sreedhara Panicker Somanath has proposed turning Mysuru into a startup laboratory, highlighting the role of smaller cities in shaping India’s tech future.
Karnataka’s GCC strategy shows a shift in how global companies choose locations. There is a stronger focus on decentralised operations, lower costs, and access to diverse talent pools. If successful, the plan could further strengthen the state’s position in India’s IT sector and expand tech-driven growth to new regions.
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