Karnataka is moving forward with a revised IT policy that introduces a ₹50 crore investment to create a Center for Applied AI. The 2020–2025 plan, which is expected to be completed by July, will be replaced by this policy. Priyank Kharge, the state minister of IT, affirmed that the new course will broaden the startup ecosystem.
Additionally, it will shift focus from Bengaluru to Tier 2 and Tier 3 cities and promote the growth of deep tech. Nasscom is among the stakeholders actively consulted by the policy in order to reinterpret Karnataka’s place in India’s digital future. Thus, Karnataka’s approach reflects its objective to lead the nation’s technological transformation through decentralized innovation.
Funding Next-Gen IT Outside Bengaluru’s Shadow
Karnataka’s upcoming IT policy marks a major transition from traditional IT-enabled services to emerging technologies. The policy includes a ₹50 crore budget over 5 years for a Centre for Applied AI that will build scalable tech solutions.
Additionally, a fund-of-funds of ₹300 crore will be utilized to support startups. On the other hand, ₹100 crore is allocated for deep tech innovations. These funds aim to promote industrial transformation across industries through the use of AI, blockchain, big data, and IoT.
Government policies are also being modified to promote investment in global capability centers and engineering R&D hubs. With the help of these programs, the state hopes to attract more multinational corporations looking for highly skilled tech workers. As a result, the dual focus aims to guarantee a sustainable and competitive digital economy.
Expanding the Startup Map Across Karnataka’s Cities
The state recognizes Bengaluru’s inadequate infrastructure and plans to expand the startup ecosystem in cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi. In recent consultations, Nasscom and IT Secretary Ekroop Caur stressed the importance of regional expansion.
Nasscom suggested that the deep tech fund adhere to global scaling standards by using an investment ticket size of ₹50 to ₹200 crore. Additionally, they suggested that the government serve as a sustainability anchor investor.
The new policy will act as a lighthouse, guiding other sectoral policies. Additionally, it will cover data infrastructure, global capability centers, cybersecurity, and engineering R&D. According to officials, this methodical approach will build strong digital ecosystems in underprivileged communities. Additionally, Karnataka is considering offering incentives to startups that relocate or expand into Tier 2 cities to facilitate these changes.
Applied AI at the Core of New Vision
The Centre for Applied AI is a strategic move to integrate AI into industrial and public service solutions. It will promote collaboration between research institutions and tech companies to solve real-world challenges.
The government encourages organizations to use IT tools like blockchain, 5G, and AI as technology permeates every industry. Therefore, the objective is to establish Karnataka as a regional center for innovation as the startup ecosystem grows more inclusive and diverse.
The IT Vision Group is currently reviewing the evolving policy, which is still in draft form. Kharge mentioned that it would be completed before the annual CEO meeting in July, which is a significant policy rollout milestone. Additionally, Karnataka wants to develop policy models that other states can follow.
Karnataka Backs Future with Applied AI Push
Karnataka’s renewed focus on applied AI addresses inclusive growth and regional equity in ways that go beyond technology. Thus, by boosting the startup ecosystem and making strategic investments in deep tech, the state is laying the groundwork for an innovative economy. Furthermore, because technology is being incorporated into every industry, this initiative has the potential to be revolutionary.
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