The Mangaluru Cluster: Growing Nexus

June 19, 2024


Infographic for Mangaluru Cluster, highlighting a thriving talent pool with 20K+ STEM graduates, cost-effective infrastructure with 25% lower relocation costs, and a strong ecosystem with 200+ startups and INR 3000+ crore export revenues, all under the Karnataka Digital Economy Mission banner.
In the past decade, the Mangaluru cluster (Mangaluru and Dakshina Kannada, Udupi, Uttara Kannada, and Kodagu districts) has grown into a strong contender in India’s IT/BT landscape. The cluster boasts lower operational costs, a resource rich ecosystem for start-ups, and a prime location for talent acquisition. With its sustained growth, Mangaluru is likely to emerge as a technology powerhouse in the next decade. 
Mangaluru has a strong foundational support system. The city boasts over 10,000 engineers graduating per year and over 20,000 STEM graduates per year, with over 150 graduation colleges and over 25 engineering colleges. The cluster also offers a vibrant ecosystem of startup incubators and innovation centres, with some prominent ones including STPI, CEOL, K–Tech and more. Its IT infrastructure continues to expand, and the general ease of doing business (EoDB) reflects the policies that have ranked Karnataka highly in EoDB. 
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Image – 1: Mangaluru Cluster: A Hub of Talent, Innovation, and Cost Efficiency

Mangaluru’s growth and potential already promises advantages to early movers. The cluster thrives as a ‘happening’ site in Fintech, BFSI, Agritech, Healthtech, and AVGC. Mangaluru’s talent pool and cumulative potential have prompted many established players, including Infosys, Cognizant, and Adani Power, to establish operations. Mangaluru’s lower operational costs further the city’s appeal. Infrastructure costs are relatively lower, and hiring costs tend to be at a minimum in addition to the government incentives and subsidies in the cluster. Mangaluru is also a well-connected city by Air, Rail, Road and Sea. 

The Mangaluru cluster is already home to the incredible successes of companies like Robosoft Technologies, Niveus Solutions, and GlowTouch. Companies like Novigo Solutions have succeeded and emerged as industry leaders, operating at less than 3% attrition. With over 200 startups, over INR 3000 crore export revenues, and some of the highest ranked engineering colleges, the growth of the Mangaluru cluster promises to make it an IT/BT nexus in India’s

While Start-ups in Karnataka need to focus on capturing the innovation quotient of their business to succeed in the highly competitive start-up ecosystem, developing an IP strategy and understanding the valuation process of their IP assets is crucial for start-ups to capture the full value of their innovation quotient. The Karnataka Digital Economy Mission (KDEM) is keen to assist start-ups in achieving their goals by providing access to resources, mentorship, and funding. By leveraging the resources and expertise provided through KDEM start-up grid, start-ups in Karnataka will be better poised to capture the innovation quotient of their business and create a roadmap for future growth and success.

Author- Nikita Tatachar, Intern at KDEM

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