Hubballi: Industry experts in North Karnataka say the 'Beyond Bengaluru' initiative has largely remained on paper, with a wide gap between policy announcements and outcomes on the ground.
They argue that most tier-II cities still lack the ecosystem to thrive, including access to venture capital, experienced founders, angel investors, skilled talent and large anchor companies. Infrastructure gaps have also limited the expansion of major firms beyond Bengaluru.
Ashok Shettar, Pro-Chancellor of KLE Technological University, Hubballi, says while multiple governments have publicised the initiative, there is hardly any visibility on the ground.
"Over the last decade or so, there has hardly been any major IT industry that has set up its base outside Bengaluru," he says, adding that land is one of the most sought-after incentives for any industry.
Lack of clarity blurs plan for Mysuru as Karnataka's second IT hub"Hubballi-Dharwad and Belagavi have quality educational institutions and a growing start-up culture, but the ecosystem is still evolving. Companies seek assurance that they can scale operations, recruit experienced talent and retain employees over the long term," he says.
Hubballi-Dharwad has five incubation centres, yet few startups have scaled into large businesses due to limited market opportunities.
Ashok Shettar, who was also Chairman of the Karnataka R&D Policy Task Force, says the time has come to diversify in IT. Each region should be developed keeping in mind that IT will soon influence the manufacturing sector.
Despite the state government announcing and establishing IT parks in cities such as Hubballi, Belagavi, Kalaburagi, Mangaluru and Mysuru over the years, the results have been mixed. While Mysuru and Mangaluru have attracted IT firms, many of the parks in other cities either remain underutilised or have been diverted to non-IT uses.
IT parks struggling
Belagavi Technology Companies Association (BeTCA) president R K Patil says the IT park on the outskirts of Belagavi has failed to attract investment due to poor infrastructure.
"I had purchased half an acre of land in the IT park, but later returned it because basic facilities were absent. There are no proper roads, bus connectivity or supporting infrastructure," he says.
Patil says bureaucratic red tape is another major hurdle for the 40-odd IT companies operating in Belagavi and entrepreneurs looking to set up startups there. Tier-II cities do not have a single-window clearance system, forcing firms to navigate multiple departments, endure long approval delays and deal with cumbersome compliance requirements.
BeTCA founding member Hitesh Dharmdasani says another challenge is the Bengaluru-centric approach to planning and decision-making. "Policies are often framed without adequately accounting for the needs of regions such as Kalyana Karnataka and the Hubballi-Belagavi belt," he says.
"The lack of incentives has forced tier-II cities to compete with Bengaluru for investments and talent, instead of complementing it as satellite hubs," he adds.
Santosh Nargund, who led the #StartInfosysHubli campaign, says North Karnataka has the potential to become a major technology hub, but companies look beyond land and policy announcements. "We need better branding, improved urban infrastructure, closer industry-government coordination and sustained policy implementation support on ground to attract both companies and talent," he says.
A citizens' campaign played a key role in operationalising the Infosys campus in Hubballi, which now employs over 1,500 people. Yet, basic infrastructure remained a challenge. "Even securing a dedicated bus service and a bus shelter for the campus was difficult," says an employee.