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Bengaluru Economy Positions for Next Phase With Steady Growth Indicators
Officials weigh steps to maintain momentum from the 2023 GDP level and MSME performance recorded in the latest state survey.
How we reported this
Bengaluru's metropolitan GDP reached $359.9 billion in 2023, the highest among South Indian metro areas according to figures compiled by Invest India.
The city's standing as one of India's most productive metro economies gives local planners a clear baseline as they consider policies that could carry forward through the coming decade. The 2025-26 Economic Survey places Bengaluru Urban district at the centre of Karnataka's MSME activity, where 6.3 lakh enterprises support 51 lakh jobs.
IT Sector Scale and Funding Trends
Bengaluru accounts for 98 percent of Karnataka's software exports and employed approximately 3.5 million people in IT, ITES and BPM sectors as of 2020. Startups based in the city have raised $70.1 billion since 2010, with $15.1 billion arriving in 2025 alone, per data tracked on the Economy of Bengaluru page.
These inflows coincide with an annual GDP growth projection of 8.5 percent through 2035 listed in the same compilation. In 2025-26 Bengaluru recorded the second-highest GDP per person nationally at ₹8.93 lakh, behind only Gurugram.
Choices on Sustaining the Base
With the MSME sector already generating the largest job count in the state, attention now centres on how existing programmes can support further expansion of the 6.3 lakh enterprises. The 8.5 percent growth path through 2035 will depend on continued coordination between the district administration and state agencies that oversee software exports and small-business registration.
Planners will next examine how the current per-person GDP figure of ₹8.93 lakh and the accumulated startup capital can translate into wider participation across the 51 lakh jobs already anchored in Bengaluru Urban district.