Tech hubs dominate, Bengaluru-Hyderabad challenge Delhi-Mumbai

Bengaluru and Hyderabad, two major tech hubs in South India, now drive more than half of the growth in the country's urban economy. 

According to the VRcity 2026 report, these two cities accounted for approximately 53% of the A-grade office space added in major cities over the past five years.

Challenging Delhi-Mumbai

The report, released at the Indiaspora Global AI Summit 2026, shows that these two cities are now challenging traditional economic hubs like Delhi NCR and Mumbai. Despite their smaller populations, their economic influence is growing rapidly.

Dominance in aviation and startups too

These two cities have contributed nearly 50% of new domestic flight activity to the top eight cities in the country over the past two years. In 2024-25, one in four new companies will be registered in these cities, reflecting their growing business importance.

Bengaluru: The Hub of Startups and Innovation

Bengaluru is still considered the startup capital of India. Innovation, funding, and new technology jobs are plentiful here. Bank deposits and mutual fund investments are also high here, reflecting strong income and financial stability.

Hyderabad: A fast-growing tech hub

Hyderabad, on the other hand, is becoming a major hub for Global Capability Centers (GCCs). Enterprise tech jobs are growing rapidly here, and the city is rapidly expanding in the infrastructure and housing sectors.

Two different models, same goal

According to the report, while Bengaluru is leading the way thanks to its innovation and startup ecosystem, Hyderabad is achieving growth through better planning and infrastructure. Together, the two cities are shaping India's economic future.

Cities changing the urban landscape of the future

The report states that these two cities are creating new models for employment, consumption, transport, and urban development. Their role is expected to become even more important in the future.