It is well-established that Karnataka leads the race in attracting global capability centres (GCCs), even as other states are working to catch up.
According to reports from the consulting firm Zinnov, Karnataka is home to 50% of India’s GCCs and employs a third of the national GCC workforce.
What is perhaps less often discussed but more impressive is the state’s emerging success in decentralising this growth. This has been powered by a structured push to build tech-driven economic ecosystems beyond its capital city.
In an interview with AIM, Priyank M. Kharge, Karnataka’s minister for Electronics, Information Technology & Biotechnology, and Rural Development & Panchayat Raj, detailed this vision.
“We are creating plug-and-play facilities in Mangaluru, Hubballi, Belagavi, Dharwad, Kalaburagi, and Ballari so that we are able to build a very solid pyramid of innovation,” he said.
Kharge described a ‘pyramid’ strategy, emphasising the importance of a strong skills foundation at the bottom, supported by incubation hubs, centers of excellence for innovations, and policy and budget backing at the top. This creates a policy-driven, skill-based structure.
It is supported by institutions like the Centre of Excellence for IoT & AI, which aims to foster innovation through collaboration with startups and the industry, according to Karnataka’s Department of Electronics, IT, and Biotechnology.
Creating Regional Tech Powerhouses
Through plug-and-play infrastructure and cluster-based development, the state is nurturing regional innovation hubs. Kharge noted that clusters in cities like Hubballi-Dharwad, Belagavi, Udupi-Manipal, Mangaluru, and Kalaburagi are emerging as viable alternatives to metro-based operations.
To facilitate this, the government has introduced the concept of Nano GCCs. “If somebody wants to see how the ecosystem is in Mysuru, we have a building. We’ll give you all the infrastructure that is required,” Kharge explained.
These smaller, more agile GCCs typically focus on niche services or innovation-driven projects. This pragmatic approach helps decongest Bengaluru while creating new economic gravity centres across the state.
The impact is already visible in export numbers. “Mangaluru exports close to around ₹3,000–4,000 crore annually in IT exports. Mysuru is exporting close to ₹3,000 crore. Belagavi is exporting close to ₹1,200 crore. So we have created these clusters,” the minister said.
Data from a Zinnov-Nasscom report supports this trend, showing that tier-2 and tier-3 cities housed about 7% of total GCC units in FY2024, an increase from 5% in FY2019. These Nano GCCs are projected to grow by 15-20% by 2025, with a surge of 25-30% anticipated in subsequent years.
The Competitive Edge
While Hyderabad hosts 355 plus GCCs, Mumbai and Pune together continue to host 720 plus GCCs reportedly, Karnataka is confident in its leadership.
Also, GCC policies across other states, such as Madhya Pradesh, Uttar Pradesh, Telangana and Andhra Pradesh, reveal distinct sectoral strengths shaped by each state’s economic priorities and ecosystem maturity.
“Competition is increasing. We love competition. It keeps us on the edge, keeps us on our toes,” Kharge said. He explained that Karnataka has set benchmarks by leading with comprehensive policies across sectors like IT, Biotech, EV, GCC, Space, AVGC, and R&D.
The data speaks for itself. “Last year, my IT exports were ₹4.5 lakh crore. The closest is my neighbour Telangana with ₹2.1 lakh crore,” Kharge stated.
Indeed, Karnataka’s 875+ GCCs outpace every other Indian state. The strategy to embed growth across districts may be its most transformative move yet.
Kharge stated that over the next three years, the government plans to implement a significant local economic acceleration initiative, aiming to establish region-specific anchors in every sector to promote their activities
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