Karnataka's 2026 budget: Mysuru will become the second IT hotspot in Karnataka

Siddaramaiah, Chief Minister of Karnataka, announced that Mysuru will be developed as the state’s second major IT hub to reduce pressure on Bengaluru and promote economic growth outside the capital. While presenting the state budget, he said Mysuru already has more than 30,000 technology professionals working in nearly 100 companies.

The government also plans to strengthen Bengaluru’s role in emerging technologies by building a new robotics and artificial intelligence campus. The facility, called the Bengaluru Robotics and AI Innovation Zone (BRAINz), will be set up by the Indian Institute of Science through its AI and Robotics Technology Park in partnership with Indian Space Research Organisation and Karnataka State Electronics Development Corporation.

The AI and Robotics Technology Park was created in 2020 within the IISc campus and is considered India’s first hub focused on artificial intelligence and robotics research. Siddaramaiah said Bengaluru is already among the world’s top five hubs for AI and big data development.

To further support innovation, the government will establish two Centres of Excellence in Bengaluru in collaboration with Institute of Bioinformatics and Applied Biotechnology, Centre for Cellular and Molecular Platforms, and NASSCOM with a funding allocation of ₹16 crore. Another Centre of Excellence will be set up at IIIT Raichur with a ₹5 crore investment.

The state also plans to expand AI education by setting up artificial intelligence laboratories in 50 government colleges across tier-2 and tier-3 cities, supported by the central government’s IndiaAI Mission. Around ₹10 crore has been allocated for this initiative.

Karnataka is also focusing on attracting more Global Capability Centres (GCCs). The state currently hosts more than 550 GCCs and aims to bring in 500 additional centres by 2029. These are expected to create around 3.5 lakh jobs and generate about $50 billion in economic output.

The budget also includes plans to boost the deep-technology ecosystem. These initiatives include developing an advanced surgical-assistant robot in partnership with IIIT Bangalore and National Institute of Mental Health and Neurosciences to improve neurosurgery outcomes.

Additionally, the Centre for Human Genetics will be expanded to include a new institute focused on genome editing and gene therapy along with additional biotechnology labs. The government has also allocated ₹10 crore to start implementing its quantum technology roadmap to train skilled professionals in the sector over the next five years.

Another major proposal includes building a new science city in Adinarayana Hosahalli in Bengaluru at an estimated cost of ₹233 crore. The project proposal has been submitted to the central government, and development will begin once approvals are received.

The budget also includes the creation of a government analytics cell with an investment of ₹1 crore to support data-driven decision-making and policy development across departments.