The Karnataka government is considering the development of comprehensive transport grids for tier 2 and tier 3 cities to meet growth requirements over the next 25 years, Deputy Chief Minister D K Shivakumar said on Sunday. The move comes amid growing interest from foreign companies looking to invest beyond the state’s major urban centres.

Speaking to the media after returning from Davos, which hosted the World Economic Forum, Shivakumar said several companies had shown interest in investing in smaller cities, which already have a basic level of infrastructure. He said the government is examining the creation of transport grids that would include ring roads in all cities, keeping in view planned development over the next 25 years. He stressed that forward-looking planning is essential given the pace of urban growth.

Citing expert projections, the Deputy Chief Minister said urbanisation in India could reach around 70 per cent over the next 25 years, making it critical to prepare cities for future mobility demands. He added that while 45 companies expressed interest in investing in Karnataka, the government chose not to sign agreements at Davos. Instead, potential investors will be encouraged to visit the state and assess factors such as human resources, infrastructure, climate and overall business environment first-hand. He noted that South Indian states are increasingly being seen as attractive investment destinations globally.

On urban infrastructure, Shivakumar said he had discussed tunnel road projects with Devendra Fadnavis, as Maharashtra has undertaken several such projects. He said suggestions were received on aspects such as parking facilities near tunnel portals, and that Karnataka officials plan to visit ongoing tunnel projects in Maharashtra to study best practices.

He also referred to the Maharashtra government’s agreement with Japan International Cooperation Agency for tunnel projects, adding that he intends to travel to Japan to hold discussions on Karnataka’s proposed tunnel road initiatives.

Holding the Bengaluru Development portfolio, Shivakumar said the state government plans to invest around Rs 2.5 trillion over the next five years to develop core infrastructure in Bengaluru. The investment will cover projects such as tunnel roads, elevated corridors and buffer roads, aimed at supporting the city’s long-term growth and its position as a major global business hub.