Nasscom Deloitte has recently published a report on the emerging technology hubs of India, which includes Tier 2 and Tier 3 cities. These cities were selected and assessed based on specific key parameters. The report aims to provide a brief profile of each city, highlighting their strengths and discussing what the future holds for them.
The survey discusses how tier-2 cities in India are becoming important tech hubs, influencing the future of work and innovation. It serves as a detailed guide for businesses looking to set up tech centers in these growing cities. The report includes profiles of 26 emerging tech hubs in India, analysis of 5 key factors for establishing tech hubs, insights into location strategies, and case studies of successful companies in these areas.
Potential for Growth and Innovation
According to the report, these selected locations have the potential to establish themselves as emerging hubs for technological growth and innovation. Factors such as a large and highly skilled workforce, advanced infrastructure, and a supportive business environment have contributed to the growth of technology and operations companies in these areas. Additionally, government investments in education and training programs have equipped the talent in these cities to meet the demands of the modern economy.
One significant advantage of these emerging cities is their cost-to-value ratio, as companies can access high-quality talent at 25–30 percent lower costs compared to major centers, making them attractive for cost-conscious businesses while maintaining productivity levels.
Many of these emerging cities boast strong startup ecosystems, with numerous incubators and accelerators providing essential support and resources to help businesses initiate their operations.
Another advantage of certain emerging cities is their proximity to major technology hubs in various centers. These locations are within easy commuting distance of major cities, making them accessible to a wide range of businesses and employees.
Also Read: Articles of Karnataka Section
Nascomm Deloitte Methodology for Selection
The Nascomm Deloitte report outlines the methodology used for selecting these emerging hubs, which includes the following criteria:
- Elimination of Tier 1 Cities-Tier 1 cities were excluded from the list due to their already developed technology ecosystems.
- Connectivity-Locations with good connectivity to both domestic and international technology hubs were shortlisted.
- Presence of Talent-The presence of abundant experienced and fresh talent conducive to the tech industry was considered.
- Population-Cities with a considerable population were filtered out.
- Smart City Initiatives-Locations prioritized for the development of smart cities were given preference.
- Strategic Relevance-Locations possessing a natural competitive edge were considered.
Key Pillars for Analysis
The shortlisted cities were analyzed based on five key pillars for establishing technology hubs
- Risk and Regulatory Environment
- Strategic Relevance
Nascomm Deloitte Report: Karnataka with Three Emerging Tech Centers
Three cities in Karnataka state are emerging tech hubs namely Mysuru, Hubballi, and Mangaluru.
Some Highlights from the Nasscom Deloitte report pertaining to the above cities.
Skills Assessment Highlights
- Mysuru ranks high in the digital skill talent pool.
- Mysuru, Madurai, and Nagpur are witnessing talent skilled in emerging technologies like blockchain and cybersecurity.
- Mangaluru and Mysuru are experiencing a rise in cybersecurity talent, with the potential to become the next cybersecurity hub due to the establishment of the Cyber Security Centre of Excellence in Mysuru in 2022.
- Emerging skills in Blockchain and Web 3.0 are gaining significance in Mangaluru, Tiruchirappalli, and Visakhapatnam.
- Mysuru is recognized for its institutes that train candidates in semiconductor technology, making it suitable for the Electronics System Design and Manufacturing (ESDM) Industry.
- Coimbatore, Jaipur, Chandigarh, and Indore are leading locations in the Business Process Management (BPM) sector.
The survey assessed the real estate attractiveness and the inter- and intra-city connectivity of emerging tech centers.
- Real Estate Attractiveness: This factor evaluates the cost and availability of both Grade A and Grade B offices.
- Inter- and Intra-city Connectivity: This includes assessing air, rail, and road connectivity with other cities and the overall transport infrastructure.
Among the South Indian cities, Kochi and Trivandrum rank the highest in both categories.
The survey also notes that cities such as Mysuru, Vijayawada, Tiruchirappalli, Hubballi, Tirupati, Warangal, and Vellore currently have relatively nascent infrastructure. Nevertheless, several projects are in progress to enhance the quality of their infrastructure. These developments will help these cities establish a stronger foundation in the near future.
Real Estate Assessment
According to the Nascomm Deloitte report, one of the key requirements enabling urbanization and economic development in a city is its real estate sector. Over the years, commercial and residential real estate has significantly improved in all emerging cities.
The survey conducted an assessment of emerging centers based on two primary aspects:
- Real Estate Cost: This refers to the rental cost of commercial property, measured in rupees per square foot per month.
- Real Estate Availability: This pertains to the availability of ready-to-move-in commercial property for lease or purchase.
Among these emerging cities, Ahmedabad, Bhopal, and Coimbatore stand out as leaders in terms of real estate availability. Affordable rates, ample property availability, and the presence of dedicated Special Economic Zones (SEZs) are the characteristics.
Upcoming Challenger Locations
Chandigarh, Lucknow, Madurai, Kanpur, and Nagpur are considered significant and emerging challenger locations. These cities are making considerable investments in upgrading their infrastructure and improving connectivity to other cities across the country.
Mysuru, Vijayawada, and Tiruchirappalli are showing a steady increase in real estate activity. They hold good growth prospects in the near future. However, it’s worth noting that they may have certain shortcomings compared to other cities in this regard.
Ease of Doing Business (EODB)
|Andhra Pradesh||Tirupati, Visakhapatnam, Vijayawada||90%|
|Karnataka||Hubbali, Mangaluru, Mysuru||90%|
|Tamil Nadu||Coimbatore, Madurai, Tiruchirappalli, Vellore||90%|
|Madhya Pradesh||Bhopal, Indore||80-90%|
|Uttar Pradesh||Lucknow, Kanpur||80-90%|
The ease of doing business is a crucial factor for cities aiming to attract businesses and promote economic growth.
Visakhapatnam, Vijayawada, Tirupati, Hubballi, Mangaluru, Mysuru, Ahmedabad, Warangal, Coimbatore, Tiruchirappalli, Madurai and Vellore have high scores of EODB.
These cities have established favorable business environments, making them attractive destinations for both local and international businesses.
Profiles of the Emerging Tech centers from Karnataka – Hubballi, Mangaluru & Mysuru as per the Nascomm Deloitte Report
Here is the brief summary from the Nasscom Deloitte Emerging Tech Survey
Hubballi: Emerging Tech and Innovation Hub
- Tech and BPM Businesses: The city hosts more than 36 technology and BPM-related businesses, with Infoedge as a major player.
- Education Excellence: The city is home to prestigious institutions like IIT, IIIT, KLE Technological University, and Karnataka University, providing a quality talent pool for the growing tech industry.
- Innovation Initiatives: Two incubators have established, opening the path for the city to enter the technology innovation space.
- Industrial Corridor: The city is part of the Mumbai–Bengaluru industrial corridor and is a hub for agro-based, manufacturing, and logistics companies.
- Cost Advantage: Land prices in the city are lower than nearby tech hub Bengaluru, attracting tech giants to set up standalone Special Economic Zones (SEZs) in the region.
- Smart City Initiatives: The city is undertaking the construction of smart roads to alleviate congestion.
- Airport Connectivity: The city’s operational airport offers flights connecting to major cities such as Mumbai, Bengaluru, Kochi, Goa, and Hyderabad.
Also Read: Articles of Hubballi Section
Mangaluru: Emerging Tech and Innovation Hub
- Tech and BPM Businesses: Mangaluru is home to over 50 technology and BPM-related businesses, including major players like Cognizant and Infosys.
- Startup District: Declared as India’s first Start-up District, Mangaluru houses the first government-established incubator for start-ups, contributing to its innovation ecosystem.
- Incubators: With more than six incubators, the city is rising in the innovation index among other Tier 2 cities.
- Infrastructure: Mangaluru boasts high availability of Grade A office infrastructure, including the dedicated Technology SEZ Mangaluru Special Economic Zone Limited (MSEZL). MSEZ has seen approximately US$ 2 billion in investments.
- Ease of Doing Business: The city offers a moderate ease of doing business environment.
- Port and Logistics: Mangaluru’s major industry is its port, with thriving logistics and businesses such as shipbuilding and maintenance.
- Connectivity: The city enjoys good connectivity to the major technology hub, Bengaluru, via road, and to other cities in India by air through an international airport.
Also Read: Articles of Mangaluru Section
Mysuru: Emerging Tech and Innovation Hub
- Tech and BPM Presence: Mysuru is home to over 200 technology and BPM-related businesses and training centers of Indian tech companies.
- Cybersecurity Hub: The city is on track to become a cybersecurity hub with the establishment of the Cyber Security Centre of Excellence.
- Startup Ecosystem: Mysuru is becoming a hotspot for innovative start-ups, with more than five incubators and ideation labs, including private players’ involvement.
- Infrastructure: In terms of infrastructure, there exists moderate availability of Grade A office infrastructure, with plans for establishing mega industrial zones on the city outskirts.
- Ease of Business: Mysuru offers a moderate ease of doing business environment, supported by the Karnataka Industrial Policy 2020 and Karnataka state IT policy.
- Startup-Friendly: The city provides a favorable ecosystem for start-ups with initiatives like ‘KDEM’ and the ‘New Age Innovation Network.’
- Connectivity: Mysuru enjoys excellent connectivity to the major tech hub, Bengaluru, via a 10-lane expressway.
Also Read: Articles of Mysuru Section
You can download the entire Nascomm Deloitte report here by logging in – Emerging Technology Hubs Of India