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Bengaluru’s Economic Landscape: Growth and Industry Diversity
An analysis of the city’s economic foundation, from software leadership to the expansion of small and medium-sized enterprises in Bengaluru Urban.
How we reported this
Bengaluru’s economic footprint remains a significant pillar of the Indian economy. As of 2023, the city’s metropolitan GDP was estimated at $359.9 billion, a figure that highlights its role as a key productivity hub. This economic output is driven by a diverse sectoral distribution, where services account for 39.5% of the GDP, followed by a manufacturing sector representing 36%, and a smaller agricultural contribution of 2.3%.
The Software Export Engine
The city serves as the heart of India's technology sector, maintaining a dominant position in the global export market. According to available data, Bengaluru contributes over one-third of India’s total IT exports. In 2024, the value of these IT exports reached $64 billion. Furthermore, the city is responsible for 98% of all software exports originating from Karnataka, underscoring its concentration of digital infrastructure and talent.
Small Enterprise Growth and Local Impact
Beyond large-scale technology firms, the Bengaluru Urban district is experiencing significant development in its small and medium-sized enterprise (MSME) sector. The 2025-26 Economic Survey reports that the district hosts 6.3 lakh enterprises, which together generate approximately 51 lakh jobs. This represents the highest level of MSME-related employment in the state of Karnataka.
These developments directly influence local wealth distribution and individual economic circumstances. Data for the 2022-23 period shows that the per capita income in Bengaluru Urban was Rs. 7,60,362. This figure stands as the highest among all districts in Karnataka and remains significantly above the state average of Rs. 3,04,474. For many residents and stakeholders involved in these sectors, the data reflects the structural importance of the city’s ongoing industrial and services-led activity.
As these sectors continue to operate, the focus for the business community remains on sustaining the growth of the MSME ecosystem and maintaining the competitiveness of the software export sector. Further updates on regional economic performance are expected to emerge as official departments continue to monitor job generation and sectoral contributions across the district.
Produced with AI assistance and reviewed against our editorial standards. Sources are linked where available. Spotted an error or need a correction? Contact [email protected].