Hyderabad, Bengaluru drive India’s tech growth

India’s urban economy is being rapidly reshaped by the twin engines of Bengaluru and Hyderabad, which together are powering more than half of the country’s growth momentum across jobs, infrastructure and consumption patterns, according to a new data report released on Wednesday.

The findings, part of the “WeAreCity 2026” report by UnboxingBLR, highlight how these two southern tech hubs are increasingly challenging the long-standing economic dominance of Delhi NCR and Greater Mumbai.

The report reveals that Bengaluru and Hyderabad together accounted for nearly 53 per cent of all Grade A office space added across India’s top cities over the past five years. Despite having smaller populations compared to Delhi NCR and Mumbai, both cities are outperforming expectations and emerging as key drivers of structural growth.

Their influence is also evident in mobility and business formation trends. The two cities contributed nearly half of the new domestic flight movements among India’s top eight cities over the past two years. In 2024-25, one out of every four new companies registered in major Indian cities was based in either Bengaluru or Hyderabad, underlining their growing dominance in enterprise activity.

While both cities are anchored in technology-led growth, their development paths differ significantly. Bengaluru continues to hold its position as India’s startup capital, leading in areas such as innovation output, venture funding and emerging technology jobs. The city also reflects higher financial maturity, with stronger bank deposits and mutual fund participation indicating greater disposable income among residents.

Hyderabad, on the other hand, is rapidly emerging as a hub for Global Capability Centres (GCCs), closing the gap with Bengaluru in enterprise technology employment. It has also recorded faster expansion in retail credit and housing loans, suggesting a city in the midst of building its core economic and residential infrastructure.

Interestingly, daily commute patterns in both cities are nearly identical. Office travel averages around 59 minutes in Bengaluru and 58 minutes in Hyderabad. The marginal difference is attributed more to urban planning, distances and infrastructure design rather than congestion alone, offering valuable insights for policymakers.

The report also sheds light on liveability trends. Bengaluru shows higher adoption of gig work, side hustles and experiential consumption, reflecting a dynamic and entrepreneurial urban culture. Hyderabad, meanwhile, scores better on infrastructure delivery and safety perceptions, particularly for women.

In terms of employment, both cities dominate entry-level hiring across sectors such as IT, manufacturing, pharmaceuticals and banking, outperforming Delhi NCR and Mumbai in several categories.

Using three indices—Economic Heft, Liveability and Workforce Pull—the report ranks India’s top cities. Delhi NCR, Greater Mumbai and Bengaluru lead in Economic Heft, while Hyderabad tops the Liveability Index, followed by Bengaluru and Kolkata. Bengaluru ranks highest in Workforce Pull, ahead of Mumbai and Delhi NCR.

According to UnboxingBLR Chairman Prashanth Prakash, the two cities represent distinct yet equally powerful models of urban growth. While Bengaluru thrives on innovation and entrepreneurial energy, Hyderabad demonstrates the strength of long-term planning and infrastructure-led expansion.