South India’s two major tech hubs, Bengaluru and Hyderabad, are now driving more than half the growth of the country’s urban economy. According to the VRCity 2026 report, about 53% of the A grade office space built in big cities in the last five years is in these two cities.
Giving challenge to Delhi-Mumbai
The report, which was released at the Indiaspora Global AI Summit 2026, suggests that both these cities are now challenging traditional economic centers like Delhi NCR and Mumbai. Despite their low population, their economic influence is increasing rapidly.
Dominance in aviation and startup also
In the last two years, these two cities contributed about 50% of the new activities of domestic flights in the top 8 cities of the country. At the same time, in 2024-25, one out of every four new companies will be registered in these cities, which shows their increasing business importance.
Bengaluru: Hub of startups and innovation
Bengaluru is still considered the startup capital of India. There is abundance of innovation, funding and new technology jobs here. Additionally, bank deposits and mutual fund investments are also high here, which shows strong income and financial stability.
Hyderabad: Fast Emerging Tech Hub
On the other hand, Hyderabad is becoming a major center of Global Capability Centers (GCC). Enterprise tech jobs are growing rapidly here and the city is expanding rapidly in the infrastructure and housing sectors.
Two different models, same goal
According to the report, while Bengaluru is progressing on the basis of innovation and startup ecosystem, Hyderabad is achieving growth through better planning and infrastructure. Both the cities together are giving a new direction to the economic future of India.
Cities changing the urban landscape of the future
The report says that both these cities are creating new models of employment, consumption, transport and urban development. Their role is expected to become even more important in the coming times.