Hyd, B’luru fuel India’s urban engine

Bengaluru: Southern tech hubs Bengaluru and Hyderabad are driving over half of India’s urban growth momentum, reshaping jobs, consumption, mobility and city dynamics, according to the “WeAreCity 2026” report by UnboxingBLR.

The two cities accounted for 53 per cent of Grade A office space added across top Indian cities over the past five years, signalling a structural shift in urban expansion.

Unveiled at the Indiaspora Global AI Summit 2026, the report, titled ‘A Tale of Two Cities’, highlights how Bengaluru and Hyderabad are increasingly challenging the dominance of Delhi NCR and Greater Mumbai despite smaller populations.

Together, they contributed nearly 50 per cent of new domestic flight additions among India’s top eight cities in the past two years. In 2024-25, one in four new companies across major cities was registered in either of the two hubs. Bengaluru continues to lead as India’s startup capital, with strengths in innovation, funding and emerging tech jobs. It also records higher bank deposits and mutual fund participation, reflecting stronger disposable incomes.

Hyderabad, meanwhile, is fast emerging as a Global Capability Centre (GCC) hub, narrowing the enterprise tech jobs gap. It has seen faster growth in retail credit and housing loans, indicating ongoing asset creation. Commute times remain nearly identical, 59 minutes in Bengaluru and 58 in Hyderabad, highlighting infrastructure and planning challenges.

On liveability, Bengaluru shows higher gig economy participation and experiential spending, while Hyderabad scores better on infrastructure delivery and safety perceptions. Both cities dominate entry-level hiring across IT, manufacturing, pharma and BFSI sectors, outperforming Delhi and Mumbai. The report ranks Delhi NCR, Mumbai and Bengaluru highest in Economic Heft; Hyderabad tops Liveability, while Bengaluru leads Workforce Pull.