From Castings to Coding: Kolhapur’s ₹4,500 Crore Blueprint for Global IT Services

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KOLHAPUR, Feb 27, 2026 — While global investors traditionally look to India’s Tier-1 metros, a strategic industrial pivot is occurring in the heart of Maharashtra. At the ‘Maha-Niryat’ (Mega Export) Conference, Mr. Pratap Patil, President of the IT Association of Kolhapur (ITAK), and Secretary Mr. Rahul Mench presented a grounded roadmap to transform the city’s IT export revenue from ₹300 crore to ₹4,500 crore ($540M).

The Industrial Shift: Diversifying a Powerhouse

Kolhapur has long been the backbone of India’s foundry and textile sectors. However, the data presented by ITAK to the District Industries Centre (DIC) highlights a structural evolution toward high-value services:

• The Current Scale: 372 registered IT units are already operational in the district.
• The Talent Pool: 9,000 engineers are currently employed locally, with a target to scale to 70,000 as infrastructure improves.
• The Goal: A 15-fold increase in export value by leveraging lower operational overheads and high employee retention.

Strategic Value for Global Importers & Business Partners

For international trade partners and business strategists, Kolhapur represents a “high-yield, low-risk” secondary hub:

1. Cost Arbitrage: Operating costs remain 30-40% lower than in Pune or Bangalore, offering global partners better margins without a dip in technical expertise.
2. Infrastructure Readiness: The ongoing ₹290 crore airport expansion is set to facilitate direct business travel and high-value cargo movement, bridging the gap between Tier-2 and global markets.
3. Policy Incentives: Under the Maharashtra IT-ITES Policy 2023, Kolhapur (Zone II) offers fiscal benefits—including stamp duty exemptions and power subsidies—that are no longer available in saturated Tier-1 cities.

The ITAK Vision

President Pratap Patil emphasized a critical shift in strategy: “Empower the 372 local units already on the ground rather than waiting for external MNCs.” By strengthening these homegrown entities, Kolhapur aims to reverse the “Brain Drain,” ensuring that local talent builds global solutions from within the city.

The Business Take:

Kolhapur is positioning itself not as a competitor to Silicon Valley, but as the world’s most reliable and cost-effective Secondary Global Service Hub. For importers seeking long-term stability and sustainable growth, the numbers in Kolhapur have finally arrived.

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