The Karnataka Cabinet has approved the new Karnataka Startup Policy 2025–2030 on November 6, aiming to establish up to 25,000 startups over the next five years, including 10,000 ventures outside Bengaluru.
The policy allocates ₹518.27 crore to strengthen the startup ecosystem across sectors such as artificial intelligence, blockchain, and emerging technologies through funding, incubation, and mentorship support.
As IT Minister Priyank Kharge shared on LinkedIn, the policy carries an outlay of ₹518.27 crore and focuses on nurturing future-ready companies in areas such as AI, blockchain, quantum computing, semiconductor design, and other DeepTech domains. Cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi are expected to play a pivotal role in this initiative.
The policy takes a holistic approach to strengthen the state’s startup ecosystem through targeted initiatives in key areas, including funding, incubation, infrastructure, mentorship, acceleration, research and development, and industry collaboration.
From 2014 to 2024, startups in Bengaluru secured $71.19 billion in funding. Notably, half of all funded startups in India originate from the city, according to media reports.
The Karnataka government now aims to extend this success across the state by providing financial support for early-stage startups and establishing advanced incubation centres, Centres of Excellence, and research and development hubs.
“Karnataka’s startup ecosystem continues to thrive, driven by sustained government efforts to foster innovation and entrepreneurship through targeted initiatives. Aligning with this, the new policy aims to make the state a national leader or a champion in the startup domain,” the proposal stated, as reported by The New Indian Express.
The policy emphasizes customised funding, grants for women-led and rural enterprises, and support for grassroots entrepreneurship. It also aims to simplify business operations by promoting easier compliance, one-stop clearances, and proactive communication with relevant authorities.
“The policy will strengthen the entire lifecycle of a startup from funding and incubation to market access, global partnerships, and regulatory support. We have also expanded our Global Innovation Alliances to open doors for Karnataka startups in international markets across 30+ countries,” Kharge said.
