Karnataka unveils plan for Bengaluru region growth, aims for $390 billion economy by 2037

The Karnataka government is developing a long-term economic strategy for the Bengaluru Metropolitan Region (BMR), targeting an expansion to a $390–$420 billion economy and the creation of up to 3 million new jobs by 2037. The proposal was reviewed at a steering committee meeting chaired by the Chief Secretary on Tuesday.

The plan is being prepared by the Institute for Sustainability, Employment and Growth Foundation (ISEG Foundation) following an agreement signed with the state government in May this year. The BMR, spanning approximately 8,000 sq. km and with a population of nearly 15 million, currently contributes over 43% of Karnataka’s Gross State Domestic Product and has an estimated economic output of $149 billion.

According to the presentation, the region recorded an average annual growth rate of 9.7% between 2015 and 2025, outpacing Karnataka’s overall growth of 8.5% and Hyderabad’s 7.5%, making it India’s fastest-growing metropolitan economy. The BMR currently accounts for about 3.8 million jobs.

The plan proposes the development of new growth centres both within and outside Bengaluru’s existing urban limits. These centres are intended to accommodate industrial, technology, manufacturing, logistics, commercial, and residential activities. The aim is to reduce development pressure on the core city and spread growth to surrounding areas.

Several transport projects have been envisaged to support this expansion. These include a 287-km circular rail network, an additional 400–500 km of Metro rail corridors, four Regional Rapid Transit System corridors, and an expansion of the suburban rail network. Upgrades to road infrastructure and airport connectivity are also part of the proposal.

As part of the planning process, the government will hold consultations with industry representatives, investors, academic institutions, and infrastructure experts over the coming months. An ideas workshop with industry stakeholders is scheduled for late June, followed by another consultation in July. The steering committee is expected to meet again on July 28. Financial and implementation strategies are proposed to be finalised in August, and the completed plan will be presented to the Chief Minister and Deputy Chief Minister in September.