While proposing a wide range of financial and non-financial incentives to accelerate investments, the Karnataka government appears to have unveiled its new Information Technology Policy for 2025–2030 recently.
Karnataka Unveiled A New IT Policy
This policy is expected to deepen innovation and expand the state’s technology footprint beyond Bengaluru.
This policy was cleared by the state Cabinet on Thursday while having an outlay of ₹445.50 crore, following approval from the Finance Department.
Under this policy, they would be introducing 16 incentives across five enabler categories.
Out of that, nine are entirely new, with a strong emphasis on supporting companies setting up or expanding in emerging cities.
Besides the financial benefits, the centre would be offering labour-law relaxations, 24/7 operational permissions and industry-ready human capital programmes.
All these initiatives are aimed at positioning Karnataka as a globally competitive, “AI-native” destination.
It appears that the units located outside Bengaluru will have access to a wide suite of benefits which includes research and development and IP creation incentives, internship reimbursements, talent relocation support, recruitment assistance, EPF reimbursement, faculty development support, rental assistance, certification subsidies, electricity tariff rebates, property tax reimbursement, telecom infrastructure support and support for industry events and conferences.
What Is Expected Under This Policy?
In the meantime, Bengaluru Urban will receive a focused set of six R&D and talent-oriented incentives, while Indian Global Capability Centres (GCCs) operating in the state will also be brought under the incentive framework.
In this policy, the Incentive caps and eligibility thresholds have been increased as this policy prioritizes growth-oriented investments for both new and expanding units.
Moving ahead, the policy lays out major infrastructure and innovation interventions beyond the incentives.
Please note here that the central element is Techniverse as a flagship initiative to develop integrated, technology-enabled enclaves through a public–private partnership model inside future Global Innovation Districts.
They will be having campuses that will house plug-and-play facilities, AI/ML and cybersecurity labs, advanced testbeds, experience centres and disaster-resistant command centres.
In their further plans, the centre will be establishing a Statewide Digital Hub Grid and a Global Test Bed Infrastructure Network that would connect public and private R&D and innovation infrastructure across Karnataka.
In their additional proposals they have included a Women Global Tech Missions Fellowship for 1,000 mid-career women technologists.
Along with an IT Talent Return Programme for professionals coming back from abroad, and broad-based skill and faculty development reimbursements.
Further, they would aid workforce mobility, and shared corporate transport routes will be developed in Bengaluru and tier-2 cities in partnership with BMTC and other transport agencies.
This policy is the result of extensive consultations with major industry stakeholders, including TCS, Infosys, Wipro, IBM, HCL, Tech Mahindra, Cognizant, HP, Google, Accenture, NASSCOM and several sector experts, said the government.
They have estimated the five-year outlay for the policy is at ₹967.12 crore.
Out of that ₹754.62 crore earmarked for incentives and ₹212.50 crore for interventions such as Techniverse campuses, digital grid development, global outreach missions and talent programmes.
