Karnataka Unveils Ambitious Startup Policy To Fuel 25000 New Businesses

Karnataka Unveils Ambitious Startup Policy To Fuel 25000 New Businesses

Karnataka Cabinet Approves Startup Policy to Establish 25,000 Startups Over Five Years

The state cabinet of Karnataka has approved the new Karnataka Startup Policy for 2025-2030, aiming to establish up to 25,000 startups over the next five years. The policy focuses on nurturing future-ready companies in areas such as Artificial Intelligence (AI), blockchain, quantum computing, semiconductor design, and other DeepTech domains.

Announced by IT Minister Priyank Kharge on November 6, the policy has an outlay of ₹518.27 crore and is designed to enhance the state’s startup landscape through targeted efforts in key sectors. The government recognizes the significant contributions that startups have made to the state’s economy over the years, with half of all startups that received funding in India originating from Bengaluru.

To build on this momentum, the new policy aims to expand this achievement throughout the state by offering financial support for early-stage startups and establishing advanced incubation centers, Centres of Excellence, and research and development hubs. The government also intends to simplify business operations by promoting easier compliance, one-stop clearances, and proactive communication with relevant authorities.

The policy highlights customised funding, grants for women-led and rural enterprises, and support for grassroots entrepreneurship. It recognizes the importance of nurturing startups in regions outside Bengaluru and aims to establish 10,000 startups in these areas over the next five years. Cities such as Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi will play a key role in this initiative.

The policy adopts a holistic approach to enhance the state’s startup ecosystem by targeting key sectors that require innovative solutions and cutting-edge technologies. This includes areas such as AI, blockchain, quantum computing, semiconductor design, and other DeepTech domains. By providing support for startups in these areas, the government aims to create a vibrant innovation ecosystem that can drive economic growth and improve the quality of life for citizens.

Customised funding is one of the key features of the policy. The government has announced plans to provide customised funding for startups in various sectors, including AI, blockchain, quantum computing, and semiconductor design. Additionally, the policy aims to provide grants for women-led and rural enterprises, as well as support for grassroots entrepreneurship.

The policy also recognizes the importance of mentorship and acceleration programs for startups. Advanced incubation centers, Centres of Excellence, and research and development hubs will be established to provide startups with access to cutting-edge technologies, innovative solutions, and expert mentors.

In addition to funding and grants, the policy aims to simplify business operations by promoting easier compliance, one-stop clearances, and proactive communication with relevant authorities. A single window clearance system is being established to facilitate startup registration, intellectual property filing, and other regulatory requirements.

The Karnataka government has also expanded its Global Innovation Alliances to open doors for Karnataka startups in international markets across 30+ countries.

The new policy is an important step towards establishing Karnataka as a national leader or champion in the startup domain. By providing targeted support and resources for startups, the government aims to create a vibrant innovation ecosystem that can drive economic growth and improve the quality of life for citizens.

Regional development is also a significant focus of the policy. The government has announced plans to establish 10,000 startups in regions outside Bengaluru over the next five years, with cities such as Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi playing a key role in this initiative.

The policy’s emphasis on AI, blockchain, quantum computing, and other DeepTech domains is particularly noteworthy. These areas are critical to driving innovation and entrepreneurship in various sectors, including healthcare, finance, and education. By providing support for startups in these areas, the government aims to create a vibrant innovation ecosystem that can drive economic growth and improve the quality of life for citizens.

As the policy unfolds, it will be interesting to see how it impacts the startup ecosystem in Karnataka. With its focus on AI, blockchain, quantum computing, and other DeepTech domains, this policy has the potential to drive innovation and entrepreneurship in various sectors. The government’s emphasis on regional development is also significant, as it aims to create a vibrant innovation ecosystem that can drive economic growth and improve the quality of life for citizens.

The Karnataka Startup Policy for 2025-2030 is an important step towards establishing the state as a hub for innovation and entrepreneurship. By providing targeted support and resources for startups, the government aims to create a vibrant innovation ecosystem that can drive economic growth and improve the quality of life for citizens.

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