Bengaluru, Hyderabad power half of India's urban growth momentum: Report

Tech hubs of the south, Bengaluru and Hyderabad, power over half of India's urban growth momentum, creating jobs, boosting consumption, mobility and the future of Indian cities, according to a data report released on Wednesday.

The two cities together accounted for about 53 per cent of all Grade A office space added across India's top cities in the last five years, the "WeAreCity 2026" report added.

"WeAreCity 2026", is the second edition of UnboxingBLR's flagship data report on Indian cities, unveiled at the Indiaspora Global AI Summit 2026.

UnboxingBLR, titled "A Tale of Two Cities", said that the report presents a data-led comparison of Bengaluru and Hyderabad, which have emerged as the two fastest growing tech hubs and have challenged the dominance of Delhi NCR and Greater Mumbai.

'Punching above weight'

The two cities are "punching above their weight" despite having significantly lower populations than Delhi NCR and Greater Mumbai, it added.

"They (Bengaluru and Hyderabad) have contributed nearly 50 per cent of new domestic flight movements among India's top eight cities in just the last two year. In 2024-25, one in every four new companies formed across India's major cities was registered in either Bengaluru or Hyderabad. This is not incremental growth, it is structural momentum," the report stated.

Startup hub vs GCC hub

The data also highlights how the two cities function despite being guided by technology-led growth. Bengaluru leads as India's start-up capital, with an upper hand in funding, innovation and emerging tech-related jobs. The city also shows higher higher bank deposits and mutual fund participation, indicating greater disposable income and financial maturity.

Meanwhile, Hyderabad is emerging as a Global Capability Centre (GCC) hub, narrowing the gap with Bengaluru in enterprise tech jobs. The growth has been quicker in retail credit and housing loans, building core assets.

Liveability front

Contrary to popular belief, the commute time in both cities are nearly identical, the report added. In Bengaluru one way travel to work place averages 59 minutes, while it is 58 minutes in Hyderabad. The difference is attributed to distance, planning and infrastructure design, offering a key insight for urban policymakers.

On the liveability front, Bengaluru showed higher adoption to gig economy, side hustles and experiential consumption, while Hyderabad records stronger indicators on infrastructure delivery and safety perceptions, especially for women.

Both cities dominate entry-level hiring across IT, manufacturing, pharma and BFSI sectors, outpacing Delhi and Mumbai combined in several segments, the report added.

The report also introduced three indices, including Economic Heft, Liveability, and Workforce Pull, to rank India's top eight cities.

Delhi NCR, Greater Mumbai and Bengaluru ranked highest in Economic Heft, while Hyderabad topped the Liveability Index, followed by Bengaluru and Kolkata.

Bengaluru led the Workforce Pull Index, followed by Greater Mumbai and Delhi NCR.

Speaking at the event, Prashanth Prakash, Chairman and Co-Founder of UnboxingBLR, said, "Bengaluru and Hyderabad represent two different but equally powerful playbooks for urban growth in India. Bengaluru thrives on dense innovation, risk capital and entrepreneurial energy, while Hyderabad demonstrates how long-term planning and infrastructure-led execution can accelerate scale."

"What this report does exceptionally well is move the conversation from perception to proof, using data to show how cities compete, complement and ultimately shape India's economic future," he added.

Founded in 2023, UnboxingBLR is a Bengaluru-focused collaborative platform dedicated to celebrating and shaping the city's culture and identity.

(With PTI inputs)