Mangaluru [Karnataka]: Minister for electronics, IT/BT, and rural development & panchayat raj, Priyank Kharge, has said that Mangaluru, Udupi, and Manipal clusters hold massive potential to emerge as the next major digital economy hub after Bengaluru. He was speaking at Technovanza 2025, where Xpheno, in partnership with the Karnataka Digital Economy Mission (KDEM), released the ‘Silicon Beach Skills’ report.
Silicon Beach talent report highlights growth prospects
The report provides an in-depth analysis of the Udupi–Mangaluru region’s talent pool, branding it as “Silicon Beach”. According to the findings, the region has a talent base of over 3.1 lakh people, of which around 90,000 professionals have more than one year of work experience.
The study emphasised the need to make this talent pool visible to Global Capability Centres (GCCs) worldwide and highlighted the region’s positioning as a “Talent Triangle”, extending beyond the coastal belt into emerging knowledge hubs.
The objective is to attract global businesses, promote innovation, and harness the region’s skills for India’s growing digital economy.
Karnataka’s rise in skills and startups
Minister Kharge stressed Karnataka’s leadership in the knowledge and technology sector, saying that the state has steadily moved up the value chain to cater to global aspirations.
“We are the only state government positioning ourselves as a destination for skills and knowledge. Through the **3 Ps—policy, people, and participation—**we are building sustainable solutions for the world,” he said.
He also pointed out that Karnataka has:
- The highest skill penetration in India
- A strong AI and startup ecosystem
- Over 45 unicorns, making it the fifth-largest unicorn hub globally
- Nearly 28% of Indian startups in deep tech
International perspective on Mangaluru’s potential
Peter Winther-Schmidt, Consul General of Denmark in Bengaluru, said Mangaluru is emerging as a promising hub for both manufacturing and digital engineering. He highlighted opportunities for collaboration under the India–Denmark Green Strategic Partnership, particularly in renewable energy, smart grids, green hydrogen, and sustainable waste management.
He also pointed to the potential of AI and IoT-driven innovation, citing the example of Mashmakes, a company in Udupi working on sustainable solutions.
Support for AI and BPO growth in coastal Karnataka
Sanjay Tyagi, jurisdictional director (Scientist G) of STPI Karnataka, said that under the India BPO Promotion Scheme (IBPS), tier-2 and tier-3 cities like Mangaluru could receive significant support. He noted that funds are still available and could be leveraged to accelerate the growth of IT-enabled services in the region.
Similarly, BV Naidu, chairman of KDEM, emphasised that AI will not lead to job losses, as vast amounts of data analysis will continue to create new opportunities. He added that the so-called “Trump effect” in restricting talent movement would eventually ease, creating a chance for India to attract skilled workers.
During a roundtable with CEOs, discussions centred on establishing Mangaluru as an AI corridor and positioning it as a FinTech Centre of Excellence.
Conclusion
With a rapidly expanding talent pool, strong government support, and growing international interest, Mangaluru is poised to emerge as Karnataka’s next big digital hub. The collective push from policymakers, industry leaders, and global stakeholders could see the region evolve into a vibrant technology and innovation corridor, bridging India’s coastal strengths with global digital opportunities.