Karnataka cements lead as India’s innovation and GCC hub amid strong funding and office market momentum

Government of Karnataka said the State continued to strengthen its position as India’s leading innovation and global capability centre (GCC) hub in 2025, driven by robust startup funding and sustained demand for high-grade office space, according to recent industry data and the latest FICCI–ANAROCK report.

Data shared by the Department of Electronics, IT, Biotechnology and Science & Technology shows Karnataka’s technology ecosystem attracted USD 3.8 billion in funding during 2025. The momentum was led largely by early-stage investments, signalling continued investor confidence in the State’s startup pipeline. FinTech emerged as a key contributor, reflecting both the maturity and diversity of Karnataka’s innovation landscape.

Alongside startup funding, Bengaluru’s dominance in the GCC segment became more pronounced during the year. The FICCI–ANAROCK report indicates that GCCs accounted for nearly 40 per cent of total office leasing across India’s top cities in 2025, with Bengaluru alone capturing over one-third of the country’s GCC-related leasing activity.

The city recorded more than 12 million square feet of GCC office leasing—more than double that of Pune and nearly three times the volumes seen in Hyderabad and the National Capital Region. Bengaluru now has an estimated 215 million square feet of Grade A office stock, with 13.5 million square feet added in a single year. Net absorption stood at close to 15 million square feet, almost a quarter of the national total, underscoring sustained demand from global enterprises.

Shri Priyank Kharge, Hon’ble Minister for Electronics, IT, Biotechnology and Science & Technology, said the performance reflected years of consistent policy direction and ecosystem development. “Karnataka’s growth as India’s leading innovation and GCC hub is the outcome of focused policymaking, strong execution and deep collaboration with industry,” he said. “Our emphasis on nurturing startups, attracting global technology investments and building world-class, sustainable infrastructure continues to inspire confidence among enterprises and investors.”

The IT-BT Department said it would continue to work closely with startups, academia, industry bodies and global partners to deepen Karnataka’s leadership in emerging technologies, digital innovation and high-value GCC operations, while ensuring growth remains inclusive, sustainable and aligned with long-term economic priorities.

GCCGovernment of Karnataka
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