
Mangaluru, Sept 25: Karnataka's push to diversify its digital economy is gaining serious traction, with a newly released report highlighting the "massive potential" for the Mangaluru-Udupi-Manipal coastal belt—dubbed 'Silicon Beach'—to emerge as the nation's next major IT and talent hub. Minister for Electronics, IT/BT, and Rural Development & Panchayat Raj, Priyank Kharge, firmly stated, "We can make Mangaluru the next Bengaluru."
The declaration came during Technovanza 2025, where the 'Silicon Beach Skills' report was unveiled by Xpheno in partnership with the Karnataka Digital Economy Mission (KDEM). The comprehensive analysis details the region's burgeoning talent pool, designed to shine a spotlight on its potential for Global Capability Centres (GCCs) and new businesses.
The 'Talent Triangle' Advantage
According to the report, the region boasts an impressive talent pool of over 310,000 individuals. Minister Kharge emphasized the state's strategic approach, focusing on the '3 Ps'—policy, people, and participation—to solidify its position as a global destination for skills and knowledge.
"We are the only state government in the country positioning Karnataka as a destination for skills and knowledge, focused on delivering sustainable solutions for the world," he said, citing Karnataka's leading position in skill penetration, its strong performance in AI and the startup ecosystem, and its status as the fifth-largest unicorn hub in India.
However, the report also underscores the need for strategic intervention to fully harness this potential, noting that currently, only 90,000 professionals in the 'Talent Triangle' possess more than one year of work experience.
Focus on AI, FinTech, and Green Innovation
International and national experts echoed this optimism, pointing to specific growth areas. Peter Winther-Schmidt, Consul General of Denmark in Bengaluru, highlighted Mangaluru's rapid emergence as a hub for both manufacturing and digital engineering. He stressed the region’s potential for a greener future, noting Denmark’s commitment to innovation in areas like renewable energy, smart grids, and green hydrogen, along with digital innovation, including AI and IoT.
Sanjay Tyagi, Jurisdictional Director (Scientist G) at STPI Karnataka, noted that Mangaluru is primed to become a hub for AI and encouraged the utilisation of funds still available under the India BPO Promotion Scheme (IBPS) for tier-2 and tier-3 cities.
Meanwhile, B.V. Naidu, Chairman of the Karnataka Digital Economy Mission, addressed concerns about AI-led job losses, asserting that AI will instead create new opportunities, especially in data analysis. He revealed discussions with CEOs about positioning Mangaluru as an 'AI corridor' and establishing it as a FinTech Centre of Excellence, suggesting the region could even attract tech talent returning from the US.







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