Karnataka Targets USD 420 Billion Economy for Bengaluru Region by 2037

Karnataka has initiated work on a comprehensive economic development roadmap for the Bengaluru Metropolitan Region (BMR), targeting an economy worth USD 390-420 billion and the creation of 2.5 to 3 million new jobs by 2037 , officials said on Wednesday.

The ambitious plan was reviewed during a high-level Steering Committee meeting chaired by Karnataka Chief Secretary Shalini Rajneesh on June 16. The roadmap has been prepared by the Institute for Sustainability, Employment and Growth (ISEG) Foundation as part of a strategic partnership with the state government.

The initiative follows a Statement of Intent signed between the Karnataka government and the ISEG Foundation on May 5, 2026, to jointly develop a long-term Regional Economic Development Plan for the Bengaluru Metropolitan Region.

Spread across nearly 8,000 square kilometres and home to around 1.5 crore people , the BMR currently has an economy valued at USD 149 billion and contributes more than 43 per cent of Karnataka's Gross State Domestic Product (GSDP).

Officials highlighted the region's strong economic performance, noting that BMR's per capita GDP of approximately USD 9,700 is nearly twice the state average and about four times the national average. Between 2015 and 2025, the region recorded a real Gross Value Added (GVA) compound annual growth rate of 9.7 per cent , surpassing both Karnataka and Hyderabad.

To support future growth and ease pressure on Bengaluru's urban core, the government plans to establish new growth centres within and beyond existing city limits. These hubs will integrate sectors such as information technology, biotechnology, manufacturing, logistics, research, residential development and commercial activities.

The roadmap also outlines major infrastructure upgrades, including a 287-km circular rail network , an additional 400-500 km metro network , new greenfield metro corridors, four Regional Rapid Transit System (RRTS) corridors, expansion of suburban rail services, and improvements to road, multimodal transport and airport infrastructure.

The state government is seeking participation from domestic and international investors to drive development across the proposed growth centres. A series of stakeholder consultations and workshops are scheduled through July and August, with the final master plan expected to be presented to the Chief Minister and Deputy Chief Minister in early September.