Karnataka is facing significant challenges in its efforts to build technology ecosystems beyond Bengaluru, with infrastructure gaps and fragmented ecosystems continuing to slow down the growth of emerging regional industrial clusters.
Infrastructure Deficits
Many tier-2 cities in Karnataka, such as Mysuru, Mangaluru, and Hubballi, lack the robust infrastructure required to attract and retain tech companies. Poor road connectivity, unreliable power supply, and inadequate internet bandwidth are common complaints among businesses operating in these areas.
Fragmented Ecosystems
Unlike Bengaluru, which has a well-established network of startups, venture capitalists, and skilled talent, other regions suffer from a lack of collaboration between industry, academia, and government. This fragmentation makes it difficult for new tech hubs to gain momentum.
The state government has launched several initiatives to promote regional development, including tax incentives and land subsidies. However, implementation has been slow, and bureaucratic hurdles remain a major obstacle.
Experts believe that without addressing these core issues, Karnataka's ambition to create multiple tech hubs will remain unfulfilled. They recommend focused investments in infrastructure, skill development, and ecosystem building to replicate Bengaluru's success elsewhere.
The article originally reported by Uma Kannan on June 6, 2026, highlights the ongoing struggle and the need for a more coordinated approach to decentralize the state's tech industry.
