A case for the Industrialisation of North Karnataka
1. Introduction
North Karnataka, once the seat of powerful dynasties such as the Chalukyas of Badami, the Rashtrakutas of Manyakheta and the Vijayanagara Empire of Hampi, has been central to the history of Kannada civilisation.
From the political legacy of the Chalukyas and Rashtrakutas, to the literary contributions of Pampa, Ranna and Ponna, and the social reforms of the Vachana movement, North Karnataka has long been a guiding force in the region's cultural and intellectual history.
Yet, today, the region often finds itself overlooked, with inadequate infrastructure and limited economic opportunities compared to the more prosperous Old Mysore region. The North–South economic divide has become increasingly pronounced and warrants urgent attention from policymakers.
Regional disparities are an inherent feature of developing economies. Economists and geographers have developed several theories to explain this phenomenon, many of which offer useful insights into Karnataka's own development trajectory.
2. Cumulative causation: Gunnar Myrdal
Gunnar Myrdal's theory of cumulative causation helps explain how an initial economic advantage can reinforce itself over time.
- The Old Mysore region enjoyed an early institutional and political advantage, including relative political stability during British rule and the legacy of the Wodeyar period.
- This enabled economic activity and infrastructure to accumulate in the region. Subsequently, the post-1991 liberalisation and the IT boom further strengthened Bengaluru's position as the state's principal growth centre.
- Consequently, North Karnataka experienced the backwash effects of this concentration, as economic activity, investment and opportunities increasingly gravitated towards Bengaluru.
- More recently, Tumakuru has begun benefiting from the spread effects of Bengaluru's expansion.
3. Core–periphery model: John Friedmann
John Friedmann's core–periphery model provides another useful framework for understanding Karnataka's regional imbalance.
Bengaluru functions as the state's economic core, while much of North Karnataka remains on its periphery.
North Karnataka supplies migrant labour to Bengaluru, helping sustain its economy, while the region itself continues to struggle to generate comparable employment opportunities.
Meanwhile, Bengaluru faces mounting urban governance and civic infrastructure challenges. Its transport, housing and public utility systems are increasingly stretched. Yet, the prevailing policy response appears to be further expansion of the metropolitan region, rather than adequately developing alternative growth centres.
The proposed renaming of districts surrounding Bengaluru as Bengaluru North, Bengaluru South and so on is symbolic of this Bengaluru-centric approach. It reflects a broader tendency to organise the state's development around its capital and the interests concentrated there.
The way forward is to develop North Karnataka's Tier 2 and Tier 3 cities into independent centres of economic activity.
4. The economic divide: Some key indicators
4.1 Share of Karnataka's NDDP
Bengaluru Urban alone contributes 42.12% of Karnataka's NDDP (2024–25).
By comparison:
- Belagavi contributes 3.64%.
- Bagalkote contributes just 2.22%.
- Tumakuru contributes 3.36%.
4.2 Per capita income
| District | Per capita income |
|---|---|
| Bengaluru Urban | ₹8.75 lakh |
| Tumakuru | ₹3.34 lakh |
4.3 Per capita income of selected North Karnataka districts
| District | Per capita income |
|---|---|
| Belagavi | ₹1.83 lakh |
| Bagalkote | ₹2.79 lakh |
| Vijayapura (Bijapur) | ₹1.87 lakh |
These figures illustrate the substantial differences in economic prosperity between Bengaluru and several districts of North Karnataka.
5. Industrial distribution
The 2024–25 Economic Survey provides some interesting insights into the geographical distribution of Karnataka's industrial economy.
| District | Industry as % of district GDDP | Share of Karnataka's industrial GDP |
|---|---|---|
| Bagalkote | 27.7% | 3.2% |
| Belagavi | 22.8% | 4.4% |
| Bengaluru Urban | 13.9% | 28.4% |
| Tumakuru | 30.1% | 5.3% |
| Mysuru | 16.5% | 2.8% |
Two important observations emerge:
- Industry constitutes a relatively larger share of the economies of districts such as Bagalkote and Belagavi than it does in Bengaluru Urban. However, their individual contributions to Karnataka's total industrial economy remain considerably smaller.
- A substantial part of North Karnataka's industrial base is concentrated in relatively lower-value-added activities, particularly agro-processing. Belagavi and Dharwad, however, have a more diversified industrial presence.
5.1 Historical comparison: District NDDP as a share of state NDDP
| District | 2004–05 | 2024–25 |
|---|---|---|
| Bengaluru | 28.78% | 42.12% |
| Belagavi | 5.87% | 3.64% |
| Bagalkote | 2.20% | 2.22% |
| Tumakuru | 3.19% | 3.36% |
The data indicate that Bengaluru's growing economic dominance has not been confined to North Karnataka's relative decline. Even other southern districts have lost relative ground as economic activity, particularly in the services sector, has become increasingly concentrated in Bengaluru.
6. Tamil Nadu: A case of comparatively distributed growth
Tamil Nadu also experiences regional disparities. However, its economic geography is characterised by multiple substantial industrial and commercial centres.
Some illustrative regional clusters include:
- Chennai metropolitan belt (4 districts): 31.66% of state GSDP
- Chennai, Chengalpattu, Tiruvallur and Kancheepuram.
- Western industrial belt (6 districts): 22.4% of state GSDP
- Coimbatore, Tiruppur, Erode, Salem, Namakkal and Karur.
Unlike Karnataka's pronounced Bengaluru-centric concentration, Tamil Nadu has developed multiple centres of economic activity across its geographical expanse.
7. Karnataka: The extent of regional concentration
The contrast within Karnataka is particularly striking.
Southern belt of Bengaluru Urban, Bengaluru Rural, Mysuru, Tumakuru and Mandya together account for: 51.1% of Karnataka's GSDP
North Karnataka — all 14 districts – together, these districts account for: 24.4% of Karnataka's GSDP.
North Karnataka — core four districts – Bagalkote, Belagavi, Dharwad and Vijayapura together account for: 10.3% of Karnataka's GSDP.
The disparity is substantial. The five selected southern districts alone contribute more than twice the economic output of all 14 North Karnataka districts combined. The four core districts contribute only about one-tenth of the state's economy.
8. The case for an industrial corridor
A Belagavi–Hubballi–Vijayapura industrial corridor could serve as the backbone of a broader industrialisation strategy for North Karnataka.
The corridor should generate spread effects across neighbouring districts, particularly Bagalkote, Gadag, Haveri and Uttara Kannada.
Why this geographical belt?
- Krishna basin
- A major source of surface water for the region.
- Existing reservoirs and irrigation infrastructure.
- Potential for groundwater recharge, subject to local hydrogeological conditions.
- Existing thermal and hydroelectric infrastructure
- Major power-generation facilities such as Kudgi, Hotgi and Almatti are located within or near the broader region.
- Considerable solar and wind energy potential
- Established wind-energy parks in the Gadag and Vijayapura belts.
- Significant scope for further renewable-energy development.
- Established road connectivity
- NH-48 connects Belagavi and Hubballi, forming part of the Bengaluru–Pune–Mumbai highway corridor.
- NH-52 connects Hubballi with Bagalkote and Vijayapura, providing an important north–south road link.
- These existing highways provide a foundation for industrial logistics and access to markets in Karnataka, Maharashtra and beyond.
- Existing railway network and electrification
- Hubballi serves as the headquarters of South Western Railway and is a major railway junction.
- Belagavi, Dharwad, Bagalkote and Vijayapura are connected to the broader railway network.
- Railway electrification has advanced substantially across South Western Railway, providing an important foundation for more efficient freight and passenger movement.
- Further improvements in line capacity, doubling and freight-handling infrastructure can strengthen industrial connectivity.
- Existing airport infrastructure
- Hubballi Airport and Belagavi Airport already provide scheduled domestic air connectivity.
- These facilities can support business travel, movement of skilled personnel and time-sensitive commercial activity.
- Their presence provides an existing foundation for strengthening regional air connectivity as industrial activity expands.
9. Resource availability and development potential
The region possesses several important resources and infrastructure assets that could support industrial expansion.
9.1 Land
- Combined fallow land across the four core districts: 1,06,347 hectares.
9.2 Solar energy
- Estimated solar potential: approximately 26 GW.
- Commissioned solar capacity: approximately 550 MW.
Potential development belts:
- Vijayapura–Indi–Sindagi.
- Bagalkote–Badami–Mudhol.
9.3 Water
- The region falls within the Upper Krishna basin.
- Despite the presence of major river and reservoir infrastructure, the districts are predominantly semi-arid.
- Efficient water management and sustainable allocation will therefore be essential for industrial expansion.
9.4 Wind energy
- Existing installed wind capacity: approximately 3.2 GW.
9.5 Thermal power
- Kudgi Thermal Power Station: 2.4 GW.
9.6 Transport and logistics infrastructure
- National highways provide road connectivity between the major urban and industrial centres.
- An established railway network connects the region to major markets, with substantial electrification already completed.
- Operational airports at Hubballi and Belagavi provide regional air connectivity.
- This existing transport infrastructure can be leveraged to develop an integrated industrial and logistics network, rather than requiring an entirely new transport backbone.
9.7 Technical institutions and skill development
- The region already has several technical and educational institutions.
- Literacy levels remain relatively lower than in some southern districts.
- Stronger industry–academia collaboration, specialised training centres and skill-development programmes can help improve the employability of local graduates and create a skilled industrial workforce.
9.8 Female workforce participation
- Female Worker Population Ratio (WPR): approximately 30–35%, compared to the state average of approximately 43.1%.
- This indicates considerable untapped potential in the female workforce.
- Employment-oriented schemes, skill development and better access to industrial employment can help unlock this potential.
10. The way forward
Hubballi–Dharwad and Belagavi already have a presence of relatively high-value-added industries. These existing industrial ecosystems provide a foundation upon which a wider manufacturing base can be developed.
It is time to broaden the geographical distribution of industrial activity and diversify Karnataka's industrial base.
Bengaluru should not have to remain the centre of everything. North Karnataka's Tier 2 and Tier 3 cities must be given the opportunity to emerge as independent engines of growth.
Manufacturing activity should be encouraged to expand northwards, while new technology and IT hubs should be developed in cities such as Mangaluru and Hubballi–Dharwad.
Such a strategy would not only create employment and economic opportunities across the state but also help ease the mounting infrastructural pressure on Bengaluru.
North Karnataka deserves more than recognition for its historical legacy. It deserves better socio-economic conditions to be proud of its future and it's role in the nation's growth. So, on the occasion of Rajyotsava, can the state finally make this region it's priority and promise a better future to the Uttara Kannadigas?
Sources 1. Government of Karnataka, Directorate of Economics and Statistics. (2025). Economic Survey of Karnataka 2024–25. Government of Karnataka. 2. Government of Karnataka, Directorate of Economics and Statistics. (2026). Economic Survey of Karnataka 2025–26: District-wise GDDP, NDDP and per capita income. Government of Karnataka. 3. Government of Tamil Nadu, Department of Economics and Statistics. (2026). District Level Gross Domestic Product Data, 2023–24. Government of Tamil Nadu. 4. Ministry of New and Renewable Energy, Government of India. (2025). Solar PV Potential of India (Ground Mounted) 5. Office of the Registrar General and Census Commissioner, India. (2011). District Census Handbook: Karnataka. Census of India. 6.Rao, M. Govinda. (2007). Intra-State Economic Disparities: Karnataka and Maharashtra. Table 3.2: Net District Domestic Product: Karnataka (2004–05), at current prices.