Karnataka is betting that the Hubballi-Dharwad-Belagavi (HDB) cluster can evolve into a high-value technology and AI hub while retaining skilled graduates. The cluster comprises Hubballi, Dharwad, Gadag, Haveri, Bagalkot, and Belagavi.
The region sees more than 35,000 graduates entering the workforce annually from over 200 institutions. The Karnataka Digital Economy Mission (KDEM) is connecting this talent with industry and real-world projects spanning AI, advanced engineering, and deeptech.
Santosh Huralikoppi, Lead Industry Anchor – HDB and MD and CEO of BPO company N. S. Infotech Limited, tells AIM that the HDB region has a strong foundation on which to build specialised capabilities. “HDB is steadily moving from being a source of talent to becoming a destination for high-value technology work,” he comments.
Currently, more than 30 companies across the HDB cluster are developing, offering, or using AI-led products and services—in agritech, medtech, fintech, industrial vision, and embedded systems.
Here, the Karnataka Digital Economy Mission’s (KDEM) approach centres on a “triple helix” involving government, industry, and academia. The focus is experiential learning, apprenticeships, and industry-aligned curricula.
From Campus Innovation to Funded Startups
NAIN 2.0 (New Age Innovation Network), a K-Tech initiative, places innovation centres inside engineering institutions across Belagavi, Dharwad, and Bagalkote. Students receive milestone-based grants to turn local problem statements into prototypes.
The pipeline extends through ELEVATE, the Karnataka government’s initiative to back early-stage startups. Of 60 Beyond Bengaluru ELEVATE winners, 21 are from HDB, the highest share among Karnataka’s clusters.
“This tells us the region is not only producing graduates; it is producing fundable ideas,” he shares.
ELEVATE NxT also provides non-dilutive deeptech grants covering AI, robotics, quantum, green energy, and advanced biotech.
“The next priority is to deepen the talent pipeline across AI/ML, data science, cloud, VLSI, embedded systems and digital engineering. Industry-academia initiatives are already moving in that direction—the Super 100 programme now covers 17 government engineering colleges, NAIN 2.0 innovation centres are funding student prototypes across Belagavi, Dharwad and Bagalkote, IIIT Dharwad has launched a BTech in AI & Computing alongside an online MTech for working professionals, and EDPs (entrepreneurship development programmes) are running across seven colleges—collectively building a more industry-ready workforce,” Huralikoppi notes.
Industry Needs to Move Beyond Bengaluru
HDB’s existing industrial base is another advantage, the case in point being Aequs and Vega in Belagavi.
Aequs has developed an aerospace manufacturing ecosystem serving global customers, while Vega has built a globally competitive helmet manufacturing business. Their presence provides a foundation for skills in advanced engineering, Industry 4.0, automation, and AI-led manufacturing.
“As AI adoption expands across manufacturing, MSMEs, agritech, and other sectors, HDB can evolve into a hub where specialised talent, technology adoption, and high-value engineering come together. Through KDEM’s Beyond Bengaluru initiative and stronger industry collaboration, we can create an ecosystem where talent stays, companies scale, and globally competitive technology capabilities emerge from the region,” Huralikoppi says.
The state’s talent strategy includes Nipuna Karnataka, Super 100, NAIN 2.0, ELEVATE, and industry-linked EDP programmes. Super 100 currently covers 17 government engineering colleges and aims to expand to 100. More than 250 students across seven colleges are part of EDP programmes spanning retail, logistics, HR, e-commerce, and BFSI.
E V Ramana Reddy, Chairman, Karnataka Skill Development Authority, believes the HDB region has a strong talent advantage when it comes to experiential capacity building. “HDB has a strong foundation, with 35,000+ graduates entering the talent pool annually, but for Gen Z, employability must go beyond academic qualifications to include problem-solving, industry exposure, and the ability to continuously learn and adapt as technology reshapes jobs,” he says
He adds, “Through initiatives such as the SUPER 100 Industry-Academia Adoption Programme, which brings 17 government engineering colleges into closer engagement with industry, we are creating pathways for students to gain practical exposure to emerging technologies and workplace requirements.”
The state is also targeting greater participation by women.
“ This transition must also be inclusive, particularly for women, by creating pathways for them to upskill and reskill and participate meaningfully across the services, manufacturing, and entrepreneurship sectors. We are aiming at 30% enrollment in ITIs over the next five years,” Reddy shares.
Beyond Incentives
Beyond talent, HDB’s growth depends on whether companies choose the region organically. Karnataka has introduced the ₹1,000 crore LEAP (Local Economy Acceleration Programme), alongside GCC and nano-GCC incentives.
The region is also exploring EVs, VLSI, R&D, startups, and GCCs. Industry discussions have focused on adapting auto-component and foundry capabilities to EVs, while Industry 4.0 could modernise manufacturing.
Education is also viewed as regional infrastructure, influencing whether professionals return from Bengaluru and build long-term careers in HDB.
The region is seeking stronger startup infrastructure through centres of excellence, incubators, specialised facilities, mentors, and follow-on funding. The objective is to build scalable companies and commercialise intellectual property.
AI could become a decisive factor. Cloud infrastructure and distributed work could allow HDB to participate in technology value chains. Karnataka’s proposed AI University with regional centres could further extend advanced AI education across Karnataka’s regional technology clusters without forcing talent relocation.
Ultimately, HDB’s test is whether it can become more than an alternative to Bengaluru. The ambition is a self-sustaining cluster where students encounter industry problems, startups emerge locally, and professionals choose to stay.
“As technology and AI continue to reshape jobs, our focus must be on continuous learning, industry exposure, and adaptable skills. Through industry-led programmes and stronger industry-academia partnerships, we aim to ensure that women and young people across Karnataka’s emerging clusters are not just trained for existing jobs, but are prepared to participate in the opportunities of tomorrow,” Reddy signs off.
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