Daijiworld Media Network - Mangaluru
Mangaluru, Mar 23: Earlier, hundreds of IT professionals graduating from colleges in Mangaluru and Udupi had no option but to migrate to metropolitan cities, including Bengaluru, in search of jobs. However, the situation has now completely changed. The Mangaluru–Udupi belt, now being referred to as the ‘Silicon Beach of India’, is witnessing the creation of employment opportunities closer to home, with coastal Karnataka gradually transforming into a new technology hub.
For years, the region’s economy had been influenced by communal politics amid challenges such as religious tensions, moral policing and agitations. Now, the region is witnessing renewed economic momentum. Undeterred by past setbacks, entrepreneurs, high-net-worth individuals (HNIs), start-ups and the business community have come together to re-establish the region’s economic prominence.
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Over the past two years, IT revenue in the Mangaluru–Udupi region has grown rapidly from around Rs 3,200 crore to nearly Rs 5,000 crore. Of this, an estimated Rs 3,000 crore is flowing directly into the local economy in the form of salaries. This growth has boosted sectors such as real estate, services, education, healthcare and tourism. The IT community has set an ambitious target of reaching Rs 45,000 crore in revenue by 2034, along with increasing the number of technology professionals from 50,000 to 2 lac during the same period.
Global acquisitions and legacy
In the last three years, three technology firms from the region have been acquired by global corporations in deals valued at around $100 million. This reflects the growing quality and capability of the technology ecosystem developing in coastal Karnataka.
Historically, the present Dakshina Kannada district was part of the erstwhile South Canara district. The region has a rich legacy in entrepreneurship and education, and a strong foundation in the banking sector, often being referred to as a 'land of banks'. With well-equipped medical facilities and a reputed education ecosystem, the region produces around 60,000 graduates every year.
Although IT major Infosys has had a presence in Mangaluru since the early 1990s, the city did not initially grow on par with Bengaluru. However, the scenario has changed significantly. Infosys currently employs around 5,000 people in Mangaluru, and more than eight IT companies with over 1,000 employees each are operating in the city.
Beyond Bengaluru initiative
Due to traffic congestion and the high cost of living in Bengaluru, IT employees and multinational companies are increasingly turning towards coastal Karnataka. Under the Karnataka government’s ‘Beyond Bengaluru’ initiative, Mangaluru is emerging rapidly as a growing technology centre. Subsidies for IT park construction and rental concessions are attracting companies. IT minister Priyank Kharge and deputy chief minister D K Shivakumar have identified Mangaluru as a key future tech hub.
During the Covid period, around 1 to 1.5 lac IT professionals from the Mangaluru–Udupi region returned to their hometowns. Owing to a better quality of life and proximity to family, many have chosen to remain. Even as companies recall employees to Bengaluru, several professionals are opting to continue working from Mangaluru, with some even changing jobs to find local employment.
Compared to Bengaluru, operational costs in Mangaluru are lower, and more than 40 IT companies have started operations in the region over the past two years. As a result, the number of IT employees has risen from 15,000 in 2023 to 30,000 today. By 2035, Mangaluru is expected to emerge as the state’s second-largest IT hub.
Cultural similarities and convenient connectivity are also attracting professionals from Kerala. Consequently, Mangaluru is becoming a preferred choice over Bengaluru for professionals from the neighbouring state as well. Overall, the Mangaluru–Udupi belt has begun a new chapter in the IT sector, offering a strong ray of hope for the economic future of coastal Karnataka.