The government of Karnataka has announced an ambitious plan to transform Mysuru into the state’s second major information technology hub after Bengaluru. The proposal was presented in the state’s 2026 budget by Chief Minister Siddaramaiah, who stated that the initiative aims to expand the technology ecosystem beyond the capital city and support balanced regional development across the state.
For decades, Bengaluru has served as India’s primary technology and startup hub, hosting thousands of IT companies, and global technology firms. However, the rapid growth of the city has also created major challenges such as heavy traffic congestion, rising infrastructure pressure, and high operational costs for businesses. The state government believes that developing Mysuru as an alternative technology centre will help reduce this pressure while creating new economic opportunities in other regions of Karnataka.
Mysuru already has a growing technology ecosystem with more than 100 IT companies and over 30,000 professionals working in the sector. The government plans to build on this existing base by attracting new technology investments, expanding IT parks, and encouraging companies to establish development canters in the city. Officials believe that Mysuru’s relatively lower living costs, better urban planning, and improving infrastructure make it an attractive destination for technology companies and skilled professionals.
The initiative is also linked to the state’s broader technology policy aimed at strengthening Karnataka’s global leadership in the IT industry. Karnataka already contributes a significant share of India’s software exports, and the government expects the state’s technology exports to grow substantially in the coming years. Under its long-term digital economy strategy, the state aims to expand the IT sector into multiple cities instead of concentrating growth in a single metropolitan area.
Several infrastructure and development projects have been announced to support Mysuru’s transformation into a technology hub. These include proposals to build industrial clusters, technology parks, and specialized facilities that support emerging industries such as aerospace manufacturing and advanced research. For instance, the government has proposed establishing an aerospace park near Mysuru Airport to attract companies involved in aircraft components and advanced engineering manufacturing.
The state budget also includes investments in social and urban infrastructure to support the expected growth in employment and population. Projects such as expanded healthcare facilities, working women’s hostels, and student accommodation have been proposed to support professionals and students who may move to the city as new technology companies establish operations there. Authorities believe these investments will help create a well-rounded ecosystem that supports both economic growth and quality of life.
Another important objective of the initiative is to strengthen the regional innovation ecosystem. By encouraging collaboration between universities, research institutions, startups, and established technology firms, the government hopes to create a knowledge-driven economy in Mysuru like what has developed in Bengaluru over the past two decades. Such collaborations could promote innovation in fields such as artificial intelligence, robotics, advanced manufacturing, and digital services.
The development of Mysuru as a second IT hub also aligns with Karnataka’s broader strategy of maintaining its leadership in India’s technology sector while ensuring sustainable urban development. As technology industries continue to expand and new digital services emerge, policymakers believe that creating multiple technology clusters across the state will be essential for supporting long-term economic growth.
If the initiative succeeds, Mysuru could emerge as a major technology destination in southern India, complementing Bengaluru’s role as the country’s leading innovation and startup ecosystem while helping distribute economic development more evenly across the region.
