Key Highlights
- •Karnataka has approved the Startup Policy 2025-2030 with an allocation of Rs 518 crore to generate 25,000 new startups.
- •The policy aims to foster 10,000 startups from regions outside Bengaluru, promoting inclusive innovation.
- •Key focus areas include AI, Blockchain, Quantum Computing, and DeepTech, with an emphasis on social entrepreneurship and ESG/UNSDG aligned projects.
State Government's Commitment to Startup Ecosystem
The state of Karnataka is making a significant move to solidify its position as India's premier hub for innovation. On Thursday, the state cabinet officially approved the Karnataka Start-Up Policy for the period of 2025-2030. This policy comes with a substantial financial commitment of Rs 518.27 crore, aimed at facilitating the creation of 25,000 new startups over the next five years.
A notable aspect of this initiative is the government's ambition to see 10,000 of these new startups emerge from towns and regions located outside the metropolitan area of Bengaluru. This strategic objective underscores a commitment to promoting entrepreneurship and innovation across the entire state, not just within its capital.
The policy places a strong emphasis on cutting-edge technology sectors, including Artificial Intelligence (AI), Blockchain, Quantum Computing, and other advanced DeepTech fields. Officials from the IT-BT department have articulated that the policy's core aim is to nurture innovative ideas by providing startups with essential resources such as funding, expert guidance, robust infrastructure, and pathways for global expansion.
Priyank Kharge, Minister for Rural Development & Panchayat Raj and IT & Biotechnology, highlighted the policy's significance: "Karnataka already stands as the unrivalled leader in India’s start-up landscape, playing a pivotal role in positioning the country as a global innovation and entrepreneurial hub. This strategic initiative will further empower impact-driven business models, boost social entrepreneurship, and promote inclusive growth in the state."
Expanding Innovation Beyond Bengaluru
Karnataka currently boasts a thriving startup ecosystem, with over 18,000 registered startups. This figure represents approximately 15% of all startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) in India. The state is also a significant contributor to the nation's unicorn count, housing nearly 50 of India's 118 unicorns, which firmly establishes it as the leading startup hub in the country. Bengaluru, in particular, has garnered substantial international recognition, ranking 10th among the world's top 20 startup cities according to the Global StartupBlink Index 2025.
The newly approved policy seeks to introduce a more distributed approach to innovation. Instead of concentrating solely on Bengaluru, the policy is designed to actively support startups located in smaller towns and cities. This initiative aims to provide individuals outside the state's capital with tangible opportunities to establish and grow their businesses, thereby fostering a more inclusive and geographically diverse startup ecosystem.
Comprehensive Support for Startups
The scope of this policy extends beyond mere financial assistance; it is fundamentally about cultivating a comprehensive environment conducive to startup growth. Entrepreneurs will benefit from access to dedicated incubation centers, essential infrastructure, and invaluable mentorship from experienced professionals who can guide them through the complexities of building and scaling a business.
Furthermore, the policy encourages startups to adopt a mission-driven approach, looking beyond purely commercial objectives. It promotes the development of projects that address critical social and environmental challenges, aligning with broader goals such as Environmental, Social, and Governance (ESG) principles and the United Nations' Sustainable Development Goals (UNSDGs).
Karnataka has also enhanced its Global Innovation Alliances program, a strategic initiative designed to facilitate connections between local startups and international partners across more than 30 countries. The primary focus areas for these collaborations include renewable energy, clean technologies, and circular economy solutions. Additionally, the Grand Challenges Program offers startups a practical platform to test and validate innovative ideas with the potential for significant positive impact on both society and the environment.
Blockchain Integration in Governance
Concurrently, Karnataka is actively leveraging blockchain technology to bolster the security and transparency of its governmental operations. Across India, the National Blockchain Platform has already achieved a significant milestone by verifying over 34 crore government documents, encompassing crucial records such as property deeds and academic certificates. Within Karnataka, platforms like Aushada are utilizing blockchain to meticulously track pharmaceutical products. This application ensures the immutability of records and maintains accountability throughout the entire supply chain.
Other cities are also embracing similar blockchain applications for governance. In Amravati, Maharashtra, municipal records, including trade licenses, construction approvals, and fire safety certificates, are now being securely stored on a blockchain. Each record is associated with a unique QR code, allowing for instant verification by any interested party. This implementation enhances record security, mitigates fraud, and streamlines government processes, making them more efficient and trustworthy for citizens.
Future Outlook for Karnataka's Startup Sector
With an allocation of Rs 518 crore over the next five years, Karnataka's new startup policy clearly signals an ambition that transcends mere quantitative growth. Startups are set to receive comprehensive support, including guidance from seasoned mentors, access to high-quality infrastructure, and opportunities to engage with global markets. A key differentiator of this policy is its deliberate focus on decentralizing innovation, moving beyond an exclusive reliance on Bengaluru.
The state government is also committed to supporting startups in smaller towns and championing projects that yield positive social and environmental outcomes. The overarching objective is to democratize access to innovation and opportunities, extending them to all regions, not just the major urban centers. For a state that already holds a leading position in India's startup landscape, this policy has the potential to cultivate a new generation of entrepreneurs who are not only commercially successful but also deeply committed to social responsibility.