Karnataka’s 'beyond-Bengaluru push' attracted 15 firms, created over 1,600 jobs in FY25

As part of its "Beyond Bengaluru" initiative, Karnataka attracted more than 15 new companies to its emerging tech clusters in Mysuru, Hubballi-Dharwad and Belagavi in the previous financial year, creating around 1,600 jobs in these tier-2 cities.

“All the companies that have expanded to these clusters have found it to be valuable, both in terms of scale-up opportunities and workforce quality,” Karnataka’s IT-BT secretary Ekroop Caur said at the Global Innovation Alliance (GIA) Partners Meet at BTS 2025.

The cluster development strategy, focused on cost arbitrage, talent access, and lower attrition appears to be paying off, with startups and tech firms increasingly looking at these cities as alternatives or complements to Bengaluru, she said.

The state is promoting three large and three mid-sized clusters in the first phase. Delegations from countries such as the US and Belgium have already visited these regions. Some also signed letters of intent (LoIs) at the last year’s Bengaluru Tech Summit (BTS) and are expected to enter into a formal MoUs with the state soon.