The government intends to develop start-up ecosystems in Mysuru, Mangaluru, Hubballi-Dharwad and Kalaburagi.
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The Karnataka government has announced that it will earmark a corpus fund of ₹100 crore for deep tech development in the State.
It also intends to set aside ₹300 crore for a Fund-of-Funds, Chief Minister Siddaramaiah announced in the Budget on Friday. The announcement comes against the backdrop of demands for sector-specific and region-specific Fund-of-Funds ever since the launch of the scheme by the Union government in 2016 with a corpus of ₹10,000 crore.
Both initiatives will be introduced under the Local Economy Accelerator Programme, which the government plans to launch to stimulate innovation and entrepreneurship in cities other than Bengaluru in the current year with a grant of ₹1,000 crore. LEAP will aim at creating 5 lakh employment opportunities.
Beyond Bengaluru
Under the programme, the government also intends to develop start-up ecosystems in Mysuru, Mangaluru, Hubballi-Dharwad and Kalaburagi and set up incubators, accelerators, centres of excellence and Global Technology Centres.
In recent years, the government has been increasingly pushing to develop start-up clusters and build investor interest in cities other than Bengaluru through its ‘Beyond Bengaluru’ initiatives. In 2024, Minister for Information Technology Priyank Kharge revealed the government’s intention to create 10,000 new start-ups in smaller towns and cities in five years under the initiative.
AI centre
During the Budget, the CM also announced that a new IT policy would be implemented in 2025 with the aim of further strengthening the State’s presence in the It sector.
“This new policy will not only give emphasis on cloud computing and development of emerging technologies but also expand information technology to tier-2 and tier-3 cities while reinforcing Karnataka’s position as a global technology hub,” he said.
To make further strides in the field of Artificial Intelligence, the government is also planning to set up a Centre for Applied AI for Tech Solutions with an investment of Rs 50 crores over the next five years.
The other major announcements include Global Innovation Districts in Mysuru, Belagavi, Dharwad and Bengaluru, three new GTCs in Mangaluru, Hubli and Belagavi, and an Agri-Tech accelerator in Kalaburagi.
Published – March 07, 2025 11:00 pm IST
