The Karnataka GCC expansion strategy aims to add 500 global capability centres by 2029, Chief Minister Siddaramaiah announced during the state budget on March 18, 2026. The plan targets 3.5 lakh jobs and $50 billion in economic output while expanding technology investment beyond Bengaluru.
Karnataka economy growth plan focuses on new tech hubs
The Karnataka GCC expansion builds on the state’s existing network of global capability centres. Karnataka already hosts around 550 GCCs operated by multinational firms. These centres manage technology, research and operational work for global companies.
However, the government now wants technology investments to spread beyond Bengaluru. The strategy places new infrastructure in emerging cities. Officials expect this approach to support the broader Karnataka economy growth plan.
Infrastructure push supports Karnataka GCC expansion
The government plans to develop a new IT park in Mangaluru through the Karnataka State Electronics Development Corporation (KEONICS). The facility aims to attract multinational companies looking to establish GCC operations.
Meanwhile, smaller innovation units known as “nano GCCs” have begun appearing in regional cities. These centres run smaller teams and focus on experimentation and product development. The GCC expansion strategy supports these flexible operating models.
Karnataka GCC Expansion Drives Economy Growth Plan
Cities outside Bengaluru already show early momentum. Nearly 100 IT companies now operate in Mysuru and employ more than 30,000 people. State leaders say such locations can absorb future technology investment.
Former ISRO chairman Sreedhara Panicker Somanath recently suggested turning Mysuru into a “startup laboratory.” The idea aligns with the Karnataka economy growth plan, which encourages distributed innovation ecosystems across the state.
Growing GCC ecosystem reshapes India’s tech operations
Industry analysts report that mid-sized companies now account for almost half of India’s GCC ecosystem. Many firms choose captive centres to manage engineering, data, and digital services.
The Karnataka GCC expansion could strengthen the state’s role in India’s technology sector. The plan also spreads investment across multiple cities rather than concentrating operations in one location.
