Karnataka plans $400 billion Bengaluru region economy by 2037

Bengaluru: Karnataka has drawn up an Economic Master Plan to develop the Bengaluru Metropolitan Region (BMR) as a global growth hub and expand its economy to $400 billion by 2037, the year Bengaluru completes 500 years.

The plan, prepared by the Institute for Sustainability, Employment and Growth (ISEG) Foundation in collaboration with the state government and presented to Chief Minister D K Shivakumar on Wednesday, envisages creating 2-2.5 million jobs and strengthening the region’s position in technology, advanced manufacturing, healthcare, education and tourism, according to an official statement.

The plan seeks to drive private investment, use land value capture to finance urban transformation, and ensure inclusive and sustainable growth.


BMR, as defined in the report, is currently a $149 billion economy spread across three districts and home to about 16 million people. It accounts for around 40% of Karnataka’s gross state domestic product, despite having about a quarter of the state’s population. Its per capita income is nearly twice the state average.

The plan proposes developing BMR as a global hub for IT, global capability centres, artificial intelligence and technology startups, with dedicated IT and GCC hubs, deep-tech sandboxes and an AI mission.

It also seeks to position the region as a deep-tech manufacturing hub across seven priority sectors, including aerospace and defence, electronics, automotive, biopharma and medical devices. Tertiary healthcare, higher education and high-end tourism have also been identified as key growth areas.

The plan targets increasing public transport’s modal share from 35% to 75% through the expansion of metro, suburban rail and regional rapid transit corridors. It also proposes a second airport, stronger ring, radial and chord roads, and multi-modal hubs.

For water security, it recommends supply augmentation, greater reuse of treated water and optimisation of distribution networks.

The plan also calls for planned cities, services-led business districts, integrated private townships and transit-oriented development. It proposes expanding affordable and shared rental housing for industrial, gig and services workers, along with a slum rehabilitation programme.

Bengaluru Development Minister Krishna Byre Gowda, Home and IT/BT Minister Priyank Kharge, Chief Secretary Shalini Rajneesh and Advisor to the Chief Minister L K Atheeq were among those present at the meeting. The ISEG Foundation was represented by Shirish Sankhe, Rasagya Kabra and Aditi Vyas.

The government will discuss the recommendations with stakeholder departments before finalising an actionable growth plan for BMR, the statement said.