The Karnataka government has approved a new Startup Policy worth Rs 518 crores to support more than 25,000 startups across the state. This policy focuses on the latest technologies, including AI (Artificial Intelligence), Blockchain, Semiconductors, Quantum Computing, and EVs (Electric Vehicles).
The new Karnataka Startup Policy (2025–2030) is designed to position Karnataka among the best innovation hubs in Asia. It aims to provide employment opportunities and encourage entrepreneurs by creating a supportive environment for startups to grow. The Government stated it wishes to develop an ecosystem that supports both tech-based startups and social impact startups.
The policy will include the creation of startup parks, AI innovation labs, and research centres. It will provide young founders with greater access to finance, mentorship, and international markets, enabling them to turn their ideas into products that compete globally.
The IT/BT Minister of Karnataka stated that the initiative will ensure that Karnataka remains at the forefront of innovation and India’s startup ecosystem. Since Bengaluru is currently the city with the most startups in India, the new policy should further solidify its position as a startup hub. The policy will also emphasise Tier 2 and Tier 3 Cities, enabling entrepreneurs throughout the State of Karnataka (not just in Bengaluru) to grow their businesses.
Approximately 6,000 startups will receive either direct financial assistance or education/training each year from these programs. The plan also calls for the creation of a long-term entrepreneurial ecosystem for founders through partnerships with venture capital firms, corporate sponsors and other non-governmental organisations.
The government will use the Rs 518 crore fund to support startup incubators, university programs, and innovation grants. Every year, around 6000 startups will receive either direct financial support or training. The plan also includes collaborating with private investors and corporate partners to build a sustainable network of founders.
This policy encourages startups in AI, blockchain, green energy and agritech to create over 10 lakh jobs by 2030. It also promotes women-led startups through special funding and mentoring programs. Additionally, by developing an environment that supports innovation and entrepreneurship, Karnataka can position itself as one of the world’s top destinations for Tech Entrepreneurs and potentially be home to future “unicorns.”
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