Bengaluru’s Innovation Mojo, Now Shifting to Mysuru?

Mysuru region is taking the lead among the six clusters marked out under Karnataka government’s Beyond Bengaluru initiative, aimed at promoting balanced growth across the state. Mysuru is achieving this growth by becoming a hub for IT/ITeS, startups, semiconductors (ESDM), and global capability centres (GCCs). 

The Karnataka Digital Economy Mission (KDEM) has set a bold target for Mysuru to achieve by 2030 — a $10 billion digital economy that creates 1.5 lakh digital jobs.

Karnataka, in 2024, launched the ‘Beyond Bengaluru’ initiative to attract investments and create jobs in regional clusters for the state’s overall economic development. These clusters have been designed to reduce business costs by 25–30% while generating local employment.

The Hubballi–Dharwad–Belagavi cluster focuses on IT services and advanced manufacturing, while Mangaluru is driving growth in port and logistics technology, fintech, IT, and deep-tech sectors. 

Shivamogga is emerging as a centre for tech infrastructure, Kalaburagi is nurturing startups and innovation, and Tumakuru is building momentum around skills development, IT/ITeS, GCCs, and plug-and-play infrastructure. 

‘Next Engine of Innovation’

Namita Adavi, partner, Zinnov, a strategic management consulting firm based out of Bengaluru, said that Mysuru is no longer a quiet neighbour to Bengaluru. “It is fast becoming the state’s next engine of innovation. Its proximity to India’s tech capital gives it the advantage of access, while its own academic and industrial depth gives it identity.” 

The city is home to over 2,800 startups and is attracting significant investments. Under the EMC 2.0 initiative, Mysuru has seen ₹1,591 crore invested across 235.5 acres for semiconductors, OSAT, and embedded systems. 

Another ₹1,250 crore is being invested by Vayu Assets in a large PCB (printed circuit boards) manufacturing plant, while a 150-acre PCB Park is being developed to boost component manufacturing. Mysuru also hosts a 500,000 sqft Global Technology Centre with over 10,000 plug-and-play seats.

According to KDEM data, Chamarajanagar has emerged as a notable example of how strategic talent development and policy support can enable IT/ITeS growth beyond Bengaluru. In the last 12–18 months, two Mysuru-based firms, rProcess and Forefront Healthcare Pvt Ltd, successfully expanded their operations into the district.

rProcess now employs over 350 people at its Chamarajanagar and Santhamarahalli centres, with more than 70% of its workforce being women. Notably, all recruits are from within a 15 km radius of the facilities, and attrition rates stand at less than 1%, highlighting a correlation between local engagement and retention.

Forefront Healthcare Pvt Ltd began with a 50-seater centre and has grown to a team of over 100 employees, also sourcing talent locally.

Both companies attribute their successful expansion to the area’s robust on-ground talent ecosystem, proactive collaboration with local educational institutions, and a Taluka Talent Profile initiative developed by KDEM and the local partner specifically for Chamarajanagar. Together, these efforts have enabled a scale-up from an initial 100-seat footprint to 450+ employees in the region.

Growth Drivers

Several programs are driving growth and innovation in Mysuru. LEAP (Leading Entrepreneurs to Actionable Progress) aims to create over 50,000 jobs annually, while Mysuru BLUE nurtures more than 40 deep-tech startups. At the same time, initiatives like Women@Work and the Cluster Seed Fund are promoting inclusivity and supporting early-stage innovation.

The city’s rising investment confidence is reflected in the establishment of 10 new company offices, including 3 GCCs, 1 ESDM firm, and 6 IT/ITeS companies such as Vayu Assets, MiPhi Semiconductors, McLaren Strategic Solutions, Omni Logistics, HOPTEKAI Technologies, and Cloud Seven. 

Between FY 2021–22 and FY 2025–26, Mysuru recorded 47 new companies and the expansion of 11 existing ones, showing a clear upward trend from just five new companies in FY 2021–22 to 16 in FY 2024–25.

Adavi added that Mysuru produces over 40,000 graduates every year, including 10,000 engineers from institutions like the National Institute of Engineering, SJCE, and the University of Mysore. “This talent is fueling high-value digital and engineering work.”

She mentioned that  leading companies such as IBM Labs, Schneider Electric, Marlabs, ArisGlobal, Freudenberg, Infosys, and Wipro have already invested in the city.

Mysuru is also known for ensuring balance between innovation and livability. Modern office spaces, a vibrant social ecosystem, and strong government support are making it a self-sustaining tech hub.

“As enterprises embrace the Bengaluru+1 strategy, Mysuru stands out not as an alternative but as an evolution, a place where engineering excellence, digital capability, and quality of life converge to define the next frontier of India’s innovation economy,” Adavi added.

The post Bengaluru’s Innovation Mojo, Now Shifting to Mysuru? appeared first on Analytics India Magazine.

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