Karnataka Unveils Ambitious 2600 Crore Push To Fuel Technology Growth Beyond Bengaluru

As Karnataka marks a pivotal moment in its journey towards innovation and growth, the state government has announced several initiatives worth ₹2,600 crores as part of its broader strategy to expand its technological landscape beyond Bengaluru. These announcements were made at the Bengaluru Tech Summit 2025 on November 19, marking an exciting new chapter for the state’s burgeoning tech industry.

Among these initiatives are six new letters of intent (LoIs) signed with various companies and startups across key sectors such as electronics manufacturing, EV systems, battery recycling, biotechnology, and drone technology. The government has also launched a range of skilling partnerships to support the growth of its innovation ecosystem.

One of the most significant LoIs is for a new unit in electronics manufacturing, which will be established by Global HDI on an 84-acre plot in Tumakuru with an investment of ₹1,500 crores. This project is expected to create over 1,000 jobs and solidify Karnataka’s position as a leading hub for electronics manufacturing in the country.

Another major announcement was made by TSUYO Manufacturing, which has signed an LoI worth ₹250 crores to set up an EV powertrain unit in Dharwad. The company plans to produce powertrain systems and generate 700 jobs, further underscoring Karnataka’s commitment to sustainable energy solutions.

In addition to these large-scale investments, the government has also introduced a range of skilling initiatives aimed at supporting the growth of its innovation ecosystem. Marvell Semiconductor and the Electronics Sector Skills Council of India have signed an MoU to train 90 women in VSLI design and embedded systems, with training sessions being offered in Tier 2 and Tier 3 cities.

Furthermore, the state has launched a new program called Nipuna Karnataka, which aims to train 4,000 youth in fields such as AI, cybersecurity, and data science. The first phase of this program will open up access to 2,800 job opportunities with partner companies, providing vital support for young entrepreneurs looking to launch their own startups.

The government’s strategy is centered around supporting innovation clusters across the state, rather than just focusing on Bengaluru. Mysuru region has been identified as a key hub for IT/ITeS, startups, semiconductors (ESDM), and global capability centers (GCCs). The Karnataka Digital Economy Mission (KDEM) aims to create a $10 billion digital economy in Mysuru by 2030, generating 1.5 lakh digital jobs.

The Beyond Bengaluru initiative, launched in 2024, is designed to attract investments and create jobs in regional clusters across the state. These clusters are expected to reduce business costs by 25-30% while generating local employment opportunities. The Hubballi-Dharwad region has also been identified as a key area for growth, with the government announcing plans to develop advanced infrastructure and support startups in this sector.

The new IT Policy for 2025-2030 is another significant initiative aimed at supporting innovation and entrepreneurship across the state. The policy positions Karnataka at the intersection of rapid global tech shifts and India’s own deep tech boom, with an intentional focus on expanding innovation beyond Bengaluru. The policy aims to attract large-scale investments in AI, quantum computing, cybersecurity, and other emerging technologies.

To support these initiatives, the government has announced an investment of ₹967 crores in incentives under the new IT Policy for 2025-2030. This investment is expected to boost software exports to ₹11.5 lakh crore, creating over 3 million jobs in the process.

The policy also focuses on nurturing future-ready companies in areas such as AI, blockchain, quantum computing, semiconductor design, and other deep-tech domains. Cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi will play a key role in this initiative, with the government launching advanced incubation centers, research and development hubs, and other support mechanisms to foster innovation.

Overall, Karnataka’s recent announcements represent a significant step forward for the state’s technology industry. By supporting innovation clusters across the state, investing in skilling programs, and introducing new policies aimed at attracting large-scale investments, the government is confident that it can create a more balanced and sustainable growth model.

The policy also highlights customised funding, grants for women-led and rural enterprises, and support for grassroots entrepreneurship. It aims to simplify business operations by promoting easier compliance, one-stop clearances, and proactive communication with relevant authorities.

As IT Minister Priyank Kharge stated, “The policy will strengthen the entire lifecycle of a startup from funding and incubation to market access, global partnerships, and regulatory support.” The government has also expanded its Global Innovation Alliances to open doors for Karnataka startups in international markets across 30+ countries.

With these initiatives, Karnataka is poised to take its place as a leading player in India’s technology landscape. By supporting innovation clusters across the state and investing in skilling programs, the government is confident that it can create a more balanced and sustainable growth model.