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Bengaluru: Karnataka is preparing a major technology expansion with plans for a new IT city in Bidadi, positioning Bengaluru for its next phase of growth. With global investors increasingly looking at the state, officials believe the new hub will help ease pressure on the capital while reinforcing Bengaluru’s status as India’s leading technology centre.
The move comes ahead of the Bengaluru Tech Summit 2025, where representatives from 60 countries are expected to explore investment opportunities and partnerships. The government views this rising international participation as a strong endorsement of Bengaluru’s talent, innovation capacity and start-up energy. Officials say the state is working to create more space for the tech sector, strengthen infrastructure and support investors who want to scale their operations in Karnataka.
The plan aims not only to sustain Bengaluru’s leadership in technology but also to distribute growth more evenly across the state.
The proposed IT city in Bidadi is part of a broader effort to reduce congestion in Bengaluru while enabling new high tech clusters to flourish. International companies have shown interest in larger, purpose built campuses, and the state believes a new hub will help meet future demand. At the same time, Karnataka is actively encouraging companies to explore options outside the capital through its new IT Policy for 2025 to 2030.
Recent industry discussions have highlighted the government’s push to shift part of the technological expansion to tier II cities such as Mysuru and Mangaluru. This decentralisation strategy is intended to create more sustainable urban growth, unlock new talent pools and ensure that the benefits of the tech economy reach beyond Bengaluru.
The policy provides a wide range of financial benefits for start ups and technology firms willing to expand outside Bengaluru. These include:
The application system is expected to open in early or mid December once detailed guidelines are released. Eligible companies must establish or expand operations in cities such as Mysuru, Mangaluru, Hubballi Dharwad, Belagavi, Kalaburagi, Shivamogga, Davanagere and Tumakuru. This forms the core of the Beyond Bengaluru strategy, which seeks to ease pressure on the capital’s infrastructure while creating new technology corridors across Karnataka.
The state has also welcomed the Supreme Court’s recent decision on the Mekedatu project, which declined to entertain Tamil Nadu’s objection to Karnataka’s plan for a dam on the Cauvery River. The ruling is seen as an important development in the long running inter state dispute.
Officials are scheduled to meet again to assess the next steps following the judgement.
