Not Gurgaon, not Hyderabad, not Pune, CA says one city could rival Bengaluru as the India’s IT hub in future: ‘Rent is 30% cheaper…’

A noticeable shift may soon reshape India’s technology landscape, with a rising coastal city positioning itself as a strong contender to challenge Bengaluru as the country’s leading IT hub. According to insights shared on LinkedIn by chartered accountant Sarthak Ahuja, professionals in the tech sector are gradually exploring opportunities beyond Bengaluru, drawn by promising growth in emerging locations.

He highlighted that one such city is witnessing rapid expansion in its technology workforce, with projections suggesting a jump from roughly 20,000 IT employees today to nearly 200,000 within the next eight years. Alongside this surge in talent, the region’s IT revenue has climbed significantly, rising from approximately ₹3,200 crore to close to ₹5,000 crore in just a two-year span.

Ahuja explained that a major driver behind this growth is the increasing presence of global companies establishing research and development centres, commonly known as Global Capability Centres. Firms like Bose Corporation have already set up such facilities, encouraged by government-backed incentives that reimburse a substantial portion of R&D expenditure, capped at high limits.


Beyond policy support, several practical advantages are accelerating this transformation. Office spaces in this city are considerably more affordable, with rental costs estimated to be about 30 percent lower than those in Pune, Hyderabad, and Bengaluru. Employee retention is another strong point, with attrition rates reportedly far below those seen in major metropolitan centres. The city is also emerging as a talent hub, supported by around 25 engineering institutions producing nearly 10,000 graduates each year.

Infrastructure and lifestyle factors further enhance its appeal. Traffic congestion remains minimal, allowing residents to commute across the city in a short time, often within 15 minutes. Housing is also relatively affordable, with a typical two-bedroom apartment priced between ₹50 lakh and ₹1 crore. Compared to Mumbai and Bengaluru, both rental costs and overall living expenses are significantly lower, making it easier for families to maintain a comfortable lifestyle at reduced monthly budgets.

This rapidly developing destination, Mangalore, is increasingly being referred to as India’s “Silicon Beach.” The Government of Karnataka is actively promoting the city by offering a range of incentives, including subsidies on rent, tax relief, reduced utility costs, and financial support for advanced research in emerging technologies such as artificial intelligence, blockchain, and quantum computing.

Mangaluru, formerly referred to as Mangalore, is a significant port and industrial center located in the Indian state of Karnataka along the country’s western shore. Nestled between the Arabian Sea and the Western Ghats, it is situated approximately 352 kilometers to the west of Bengaluru. The city also lies around 14 kilometers north of the Karnataka–Kerala boundary and nearly 297 kilometers south of Goa.

Mangaluru plays a crucial role as an important port city and industrial hub in the region. A distinctive feature of the city is its access to all four primary modes of transportation—air, road, rail, and sea—making it the only location in Karnataka with such comprehensive connectivity. This advantage positions it as a key center for commerce, logistics, and regional trade.