Karnataka Budget 2026 pitches Mysuru as second IT city after Bengaluru

Karnataka CM Siddaramaiah and Deputy CM DK Shivakumar during the Budget session.

The Karnataka government has proposed positioning Mysuru as the state’s second major IT city after Bengaluru, as part of its strategy to expand the technology sector beyond the state capital.

Presenting the the Budget for FY27 on March 6, chief minister Siddaramaiah said the government will develop infrastructure and policy support to encourage technology companies to set up operations in Mysuru, which has been emerging as a preferred alternative destination for IT and IT-enabled services firms.

The move is aimed at easing pressure on Bengaluru’s infrastructure while creating new growth centres for the technology industry. Mysuru, which is 140 km from Bengaluru, already hosts delivery centres of several IT companies and has seen steady growth in the technology workforce over the past few years.

By strengthening the ecosystem in the city, the government hopes to attract more investments from technology companies looking to expand operations in Karnataka but seeking locations outside Bengaluru due to rising costs and congestion.

The proposal is part of a broader push by the state to develop technology corridors beyond the capital and distribute economic activity more evenly across Karnataka.

With improved infrastructure, talent availability and connectivity, Mysuru is expected to play a bigger role in the state’s technology sector, which continues to be a key contributor to Karnataka’s economy.