The Karnataka Cabinet has approved the Startup Policy 2025–2030, setting an ambitious target to establish 25,000 startups across the state over the next five years. Of these, at least 10,000 will be based outside Bengaluru, as part of a broader push to decentralize innovation and strengthen regional entrepreneurship.
Announcing the policy on November 6, Priyank Kharge, Minister for IT & BT, said the initiative will play a key role in shaping the next generation of startups in emerging technologies such as artificial intelligence, blockchain, quantum computing, and semiconductor design. The policy carries a total outlay of ₹518.27 crore and is positioned as one of India’s most comprehensive state-level innovation frameworks.
DeepTech, Funding, and Statewide Startup Inclusion
The new policy adopts a holistic approach to accelerate growth through funding, incubation, mentorship, and research collaborations. It also emphasizes extending startup activity beyond the capital, with Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi identified as key regional innovation hubs.
Between 2014 and 2024, startups in Bengaluru attracted $71.19 billion in funding, accounting for nearly half of India’s total startup investments, according to media reports. The government now intends to replicate that success across the state through targeted financial assistance for early-stage ventures, women-led startups, and rural entrepreneurs.
The plan includes grants, innovation vouchers, and incubation programs, as well as the creation of Centres of Excellence and R&D hubs in partnership with academia and industry.
Simplifying Business and Expanding Global Collaboration
The policy also outlines measures to reduce regulatory friction for entrepreneurs. It promises one-stop clearances, streamlined compliance processes, and better communication between startups and state agencies. By enhancing ease of doing business, the government aims to position Karnataka as a national leader in startup-friendly governance.
“The policy will strengthen the entire lifecycle of a startup—from funding and incubation to market access and global partnerships,” Kharge said. “We are expanding our Global Innovation Alliances to open doors for Karnataka startups in more than 30 countries.”
The document highlights support for women founders and grassroots innovators, aligning with the state’s larger goal of inclusive growth through technology. It also encourages collaboration with venture capital firms and corporate accelerators to boost funding access and market linkages.
Positioning Karnataka as India’s Startup Capital 2.0
With the new policy, Karnataka seeks to sustain its leadership in India’s innovation ecosystem while addressing regional disparities. By blending government support with private sector collaboration, the initiative sets the stage for a balanced, innovation-driven economy that extends far beyond Bengaluru’s established startup corridors.
The five-year roadmap is expected to catalyse entrepreneurship in DeepTech, climate tech, and advanced manufacturing, reinforcing Karnataka’s position as a key contributor to India’s digital economy.
