Karnataka’s government launched the 2025-2030 Startup Policy with a bold mission: empower 25,000 startups across the state and transform entrepreneurship into a tool for balanced regional growth. With an outlay of ₹518.27 crore, the policy builds on Karnataka’s long-standing reputation as India’s innovation capital while expanding opportunities beyond Bengaluru.
Building the Next Wave of Entrepreneurs
The government aims to create 10,000 startups outside Bengaluru, a clear shift from the city-centric model that dominated earlier policies. Bengaluru already leads India’s startup ecosystem, but rural and tier-2 cities still wait for their share of innovation-driven growth. The policy intends to change that narrative.
Officials in the Department of Electronics, IT, BT, and Science & Technology (DEITY) designed this policy after months of consultations with founders, investors, and academia. The plan outlines programs that fund, mentor, and connect startups to global networks.
Chief Minister Siddaramaiah and IT Minister Priyank Kharge unveiled the policy at the Bengaluru Tech Summit, describing it as a “commitment to democratise innovation.” They said the new framework puts every district on Karnataka’s startup map, ensuring that talent from Mysuru, Hubballi, Belagavi, Mangaluru, and Kalaburagi receives equal access to capital and mentorship.
A Decentralised Approach to Innovation
The government will establish startup clusters in secondary cities, each specialising in a unique technology vertical. For example:
- Mysuru will focus on semiconductors and electronics design.
- Mangaluru will nurture blue economy and marine tech.
- Hubballi-Dharwad will strengthen agritech and manufacturing startups.
- Belagavi will develop aerospace and defence innovation.
By aligning clusters with local strengths, Karnataka aims to build mini innovation hubs that complement Bengaluru rather than compete with it.
Minister Priyank Kharge said during the launch, “We cannot concentrate all innovation in one city. The new policy allows a young founder from Ballari or Raichur to build globally scalable startups without leaving home.”
Direct Funding and Faster Access to Capital
The ₹518-crore fund will flow through three channels: seed support, venture funding, and infrastructure development.
- Seed Support Scheme: Early-stage startups can receive grants up to ₹10 lakh to validate their ideas. The state plans to disburse at least ₹100 crore through this channel over five years.
- Venture Fund Partnership: Karnataka will co-invest with private venture capital firms to expand access to Series A and B funding rounds. The government expects to mobilise nearly ₹1,000 crore in private investment through this approach.
- Infrastructure Grants: The policy allocates ₹150 crore for new incubators, accelerators, and innovation labs in universities and industrial zones.
Instead of waiting for lengthy approvals, the new policy ensures one-window clearance for funding applications. The Startup Karnataka portal already integrates digital application, tracking, and disbursement features to cut bureaucracy.
Focus on DeepTech and Future Industries
The 2025-2030 plan pushes startups to enter deep technology sectors — areas that drive the next industrial wave globally.
The focus areas include:
- AI and Machine Learning
- Semiconductors
- Quantum Computing
- Robotics and Automation
- SpaceTech and Defence
- CleanTech and Energy Storage
The government will launch a DeepTech Innovation Fund within this fiscal year to support startups developing high-risk, high-impact products. It will also connect these startups to public research labs and corporate R&D centres.
In addition, the policy encourages universities to convert research into commercial startups. The government will fund technology transfer offices and provide innovation credits for patent filings and prototype development.
Strengthening the Startup-Industry Bridge
Karnataka’s policymakers recognise that startups grow faster when they collaborate with large enterprises. The policy, therefore, builds a “corporate-connect program” where established companies adopt early-stage ventures and help them integrate into supply chains.
Manufacturing giants like Toyota Kirloskar, Bosch, and Bharat Electronics have already signed up for the program. They will mentor startups in mobility, energy, and materials technology.
The government also plans to organise “Innovation Challenges” in partnership with corporate players. Through these challenges, startups can win pilot contracts, funding, and international exposure.
Expanding Global Reach
The 2025-2030 policy doesn’t limit ambition to local markets. It creates a Global Startup Bridge Program that connects Karnataka-based startups to ecosystems in Japan, the U.S., Germany, and Singapore.
Under this program, the government will subsidise travel, networking events, and soft-landing facilities in foreign accelerators. Karnataka already maintains MoUs with global partners like Silicon Valley Innovation Center and Japan External Trade Organization (JETRO) to help startups access global customers and investors.
Empowering Women and Underrepresented Entrepreneurs
The government also intends to make entrepreneurship inclusive. The policy sets aside 25% of all grants for women-led startups and introduces a special fund for rural innovators and social enterprises.
Karnataka will train 50,000 women entrepreneurs in digital business skills and connect them to mentors. The government will also create a “Rural Innovation Fund” worth ₹50 crore to support problem-solving in agriculture, sanitation, and renewable energy.
Minister Priyank Kharge said, “We don’t want a startup ecosystem that only celebrates elite founders from big cities. We want to empower farmers’ daughters, small-town dreamers, and college students who believe they can change the world.”
University Partnerships and Talent Development
The government wants to transform universities into innovation playgrounds. It has identified 40 institutions that will host new incubators or innovation labs.
Each incubator will train students to build prototypes, pitch investors, and file patents. The policy mandates that every government engineering college must include a Startup Cell by 2026.
The government also plans to collaborate with IISc Bengaluru, IIIT Dharwad, and NITK Surathkal to create joint DeepTech centres for space, quantum, and robotics research.
Simplifying Regulations and Building Infrastructure
To reduce friction for founders, the policy establishes a Startup Facilitation Cell within the Department of IT-BT. This cell will handle everything from company registration to intellectual property filing and export clearances.
The government will also expand Startup Karnataka Hubs — co-working and lab spaces designed to lower the cost of starting up. New hubs will open in Mysuru, Mangaluru, and Belagavi within the next year.
Additionally, the policy integrates with the Karnataka Innovation Authority Act, allowing regulatory sandboxes for new technologies such as fintech, drones, and EVs. These sandboxes will let startups test products under real-world conditions before full-scale commercial launch.
Expected Impact and Long-Term Vision
The government expects the new policy to create over 200,000 new jobs and attract ₹10,000 crore in cumulative investment by 2030. Officials forecast that Karnataka’s startup ecosystem could double in value, surpassing $200 billion by the end of the decade.
By spreading innovation to every region, the policy hopes to reduce urban migration and strengthen local economies. Startups will not only solve technology challenges but also address regional problems such as waste management, water scarcity, and agricultural inefficiency.
Chief Minister Siddaramaiah summed up the vision: “We want a Karnataka where innovation belongs to everyone — not just to Bengaluru.”
Conclusion
Karnataka’s 2025-2030 Startup Policy shows clear intent, sharp execution strategy, and inclusive ambition. Instead of waiting for markets to evolve on their own, the state government now drives entrepreneurship as a structured mission.
It funds young founders directly, builds local ecosystems, and trains universities to produce innovators. It connects startups to industry and global partners while encouraging women and rural entrepreneurs to lead.
Every rupee of the ₹518-crore policy aims to turn innovation into livelihood, equality, and pride. Karnataka no longer treats startups as city-centric experiments; it treats them as the foundation for the state’s next decade of growth.
The policy doesn’t just promise a startup revolution — it creates the conditions for one.
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