Karnataka's top 5 GDP drivers powering 2026 growth

Bengaluru Urban leads with IT, HAL, FDI. Mangaluru via ports, MRPL. Belagavi, Tumakuru, Mysuru drive autos, SEZs, tourism for balanced growth

Karnataka eyes a GSDP of Rs 30.70 trillion ($359.45 billion) by FY26, growing at 11.38% CAGR since FY16, propelled by five key districts that dominate IT, manufacturing, ports, and tourism. These powerhouses contribute over 40% of state exports worth Rs 2.32 lakh crore, with Bengaluru Urban alone accounting for 37-40% of GDP at Rs 9.98 lakh crore ($111 billion).

Bengaluru Urban reigns as India's Silicon Valley, generating over a third of state software exports through giants like Infosys, TCS, and Wipro. Aerospace via HAL, biotech parks, and EV policies fuel FDI of Rs 4.27 lakh crore since 2019. Metro GDP nears $360 billion (PPP), though congestion spurs Rs 48,686 crore road investments including the Peripheral Ring Road.

Mangaluru (Dakshina Kannada) ranks second at Rs 1.37 lakh crore ($15.25 billion), leveraging its port for 25% of engineering exports and 24% electronics. Banking hubs, MRPL refinery, fisheries, and Gulf remittances bolster resilience, with new SEZs targeting chemicals amid 7.2% manufacturing surge and a top composite economic index.

Belagavi secures third, thriving on engineering, textiles, autos, and mining led by Toyota Kirloskar and Raymond. Rs 3,300 crore expansions, NH-748A upgrades (Rs 2,675 crore), and proximity to Maharashtra draw Rs 42,915 crore MoUs, creating 22,600 jobs under Karnataka Industrial Policy 2020-25.

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Tumakuru follows with Rs 99,000 crore ($10.97 billion) from NH-48 SEZs in autos, pharma, and food processing as Bengaluru's decongestant. Rs 8,000 crore infra and irrigation investments, plus 31 projects worth Rs 3,830 crore, advance agri-chains and balanced growth.

Mysuru rounds out the list, blending 28.45 crore tourists with silk, IT parks, and Toyota's third plant (Rs 3,300 crore). Heritage sites like Mysore Palace, Vande Bharat links, and biotech hubs align with ‘Beyond Bengaluru’ goals; expanded metropolitan limits to 341 sq km signal urban push.

These districts anchor Karnataka's 8.2% national GDP share, renewables (23 GW), and Rs 54,427 crore FDI. Start-up Policy 2025-30 allocates Rs 518 crore for 25,000 ventures, prioritizing 10,000 outside Bengaluru via grants and deeptech clusters, tackling urban-rural gaps en route to a $3.7 trillion vision.

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