Mangaluru Poised to Become a ‘Silicon Beach City’ with State Government Backing
Mangaluru: In a bid to decentralize economic activity and foster innovation outside of Bengaluru, the Karnataka government has announced plans to develop Mangaluru into a “Silicon Beach City.” Minister for Rural Development and IT-BT, Priyank Kharge, revealed the ambitious initiative during a press conference held at the Zilla Panchayat office on Wednesday.
Minister Kharge emphasized Mangaluru’s significant contribution to the state’s economy, currently standing at 5.4% of Karnataka’s GDP, second only to Bengaluru, which accounts for nearly 40%. Kalaburagi, in comparison, contributes 1.9%. Addressing the concentration of IT-BT companies in the state capital, Kharge stated that efforts are underway to stimulate private investments and nurture startups in other regions. While Kalaburagi will be positioned as an agri-tech hub, the focus for the Mangaluru cluster will be on leveraging the blue economy and marine-based industries to stimulate local economic growth.
The state government has earmarked a substantial Rs 1,000 crore for research and startup-related projects across six innovation clusters, with the Mangalore-Udupi-Manipal region forming one of these key hubs. Of this total allocation, ₹250 crore has already been disbursed. Minister Kharge announced upcoming consultations with local educational institutions and industry leaders next month to comprehensively assess specific needs and tailor government interventions accordingly.
The government’s strategic vision includes incentivizing companies that offer innovative solutions to challenges within marine life and aquaculture. The region witnessed IT services exports worth Rs 3,500 crore last year, and there is a concerted effort to double this figure. “We want to retain local talent by supporting startups and innovation here,” Kharge stated, highlighting the presence of 81 startups in the Mangaluru-Udupi-Manipal cluster, including 30 led by women, out of the 400 startups in Karnataka.
Responding to a question regarding opportunities for Non-Resident Indians (NRIs) considering returning home in light of recent tax policy changes in the United States, Minister Kharge commented on the lack of supportive central government policies. “We have no control over U.S. policy. Our Prime Minister once campaigned with slogans like ‘Namaste Trump’ and ‘Ab Ki Baar, Trump Sarkar’, but today our people are facing up to 50% taxation, and even H1B visas are coming under tax implications.” He drew a contrast with countries like China, which have implemented clear strategies to integrate returning professionals into their workforce and research sectors. Kharge expressed disappointment that the Central government had not adopted similar policies despite receiving suggestions. He affirmed Karnataka’s commitment to fostering a conducive environment for local innovation and expressed hope for support from the central government.
ZP CEO Narvade Vinayak Karbari and Minister’s Private Secretary Bhimashankar were also present at the press conference, underscoring the collaborative effort behind this initiative. The development of Mangaluru as a ‘Silicon Beach City’ marks a significant step towards balanced regional development and leveraging local strengths for economic prosperity in Karnataka.