With the aid of a task force including stakeholders in the industry, government, and experts from various fields, the Karnataka government is gearing up to encourage IT companies to start looking at tier 2 cities to establish themselves. The government is looking forward to expanding the IT sector in the state by looking at geographical areas outside of Bangalore. The ‘Beyond Bengaluru ‘ initiative will provide companies with incentives if they wish to locate themselves in cities like Mangalore, Mysore, Belagavi, Hubbali, and Shivamogga. The main intention behind launching such an ambitious project is to ‘build innovation and a technology ecosystem.’
The Deputy Chief Minister unveiled the plan and remarked how as a result of the pandemic work from home has gone from being temporary to somewhat permanent. In times such as these, developing a technology ecosystem in these cities will help locate and tap talent pools.
As of now, the state relies on Bengaluru, the capital city for capital as the city produces 90% of the revenue required. Therefore, if the number of technology hubs are increased in the state, the distribution will begin to look much more balanced than it does now. The government is also anticipating reverse-migration once the project comes into effect as it will become easier than it is now for people to work from tier 2 and 3 cities and is therefore in talks with telecom companies to ensure a seamless network. Some other facilities that come with the project are that the government will be providing workspaces with plug and pay facilities, tax rebates for companies, marketing expense reimbursements, and patent expense reimbursements.
While similar initiatives were taken a few years back with the intention of decongesting Bangalore, none of them proved to be successful. Therefore, the government plans to start afresh, and this time ensure the success of this project.