Mangalore Emerges as India's Next IT Hub, Challenging Bengaluru
Not Gurgaon, not Hyderabad, not Pune, CA says one city could rival Bengaluru as the India’s IT hub in future: ‘Rent is 30% cheaper...’
The Economic TimesImage: The Economic Times
Mangalore, a coastal city in Karnataka, is positioning itself as a potential rival to Bengaluru in the IT sector. With a projected increase in IT employees from 20,000 to nearly 200,000 in eight years and significantly lower living costs, Mangalore is attracting tech professionals and companies alike.
- 01Mangalore's IT workforce is projected to grow from 20,000 to 200,000 in eight years.
- 02IT revenue in Mangalore has increased from ₹3,200 crore to nearly ₹5,000 crore in two years.
- 03Rental costs in Mangalore are about 30% lower than in major cities like Bengaluru and Pune.
- 04The city boasts low employee attrition rates and a strong pipeline of engineering graduates.
- 05Government incentives are further driving growth in Mangalore's tech sector.
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Mangalore, a coastal city in Karnataka, is rapidly emerging as a significant contender to Bengaluru's status as India's leading IT hub. Chartered accountant Sarthak Ahuja highlighted that the city is set to increase its technology workforce from 20,000 to nearly 200,000 over the next eight years. This growth is fueled by a surge in IT revenue, which has risen from approximately ₹3,200 crore to close to ₹5,000 crore within two years. Ahuja noted that the establishment of Global Capability Centres by global firms, including Bose Corporation, has been a major catalyst for this transformation, supported by government incentives that reimburse a significant portion of R&D expenditures. Additionally, Mangalore offers practical advantages such as 30% lower rental costs compared to other major cities and a low attrition rate, making it an attractive destination for tech professionals. The city is also home to around 25 engineering institutions producing nearly 10,000 graduates annually, further enhancing its talent pool. With minimal traffic congestion and affordable housing options, Mangalore is increasingly being dubbed India’s “Silicon Beach,” as the Government of Karnataka promotes it through various incentives for emerging technologies.
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The growth of Mangalore as an IT hub could lead to increased job opportunities and economic development in the region, making it an attractive place for tech professionals and their families.
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