Karnataka government on Tuesday launched two ambitious technology policies targeting the IT and space sectors, to further propel the state toward its earlier announced USD 1 trillion local economy goal.
Unveiled at the annual Bengaluru Tech Summit 2025, the Information Technology (IT) Policy 2025-2030 and the Space Technology Policy 2025-2030 outline comprehensive incentives and infrastructure plans aimed at cementing the state’s global leadership in the digital economy and the emerging ‘NewSpace’ domain.
IT Policy Targets Software Exports
The new IT Policy, framed under the strategic pillars of F.R.A.M.E. (Frontier, Regional, Alignment, Market, Enterprise), focuses heavily on technologies like Artificial Intelligence (AI), Quantum Computing, Web3 and Blockchain.
The policy sets aggressive targets:
- Software Exports: Increase from the current Rs 4.09 lakh crore to Rs 11.5 lakh crore (USD 138 billion) by 2030.
- Employment: Generate over 90 lakh direct and indirect jobs during the policy period.
- Deep Tech Focus: Establish Karnataka as the ‘deep tech innovation destination’ by implementing the Karnataka Quantum Roadmap and establishing dedicated research ecosystems.
- Increase IT’s contribution to the state’s economy (GSVA) from 26 per cent to 36 per cent.
To prevent excessive concentration in Bengaluru, the government plans to establish Technoverse – Integrated Technology Campuses in emerging tech clusters like Mysuru, Mangaluru, Hubballi and Shivamogga, utilising a Public-Private Partnership (PPP) model.
The state has also introduced the Women in Global Tech Missions Fellowship and the IT Talent Return Program to address the demand for a highly specialised workforce in these frontier areas.
Space Policy Seeks 50% Share Of Indian Market
The Space Technology Policy 2025-2030 builds on Karnataka’s historic role as India’s space capital, setting a vision to become the global hub for space innovation and manufacturing. The policy targets a USD 3 billion cumulative investment into the space ecosystem.
Key objectives:
- National Market Share: Capture 50 per cent of India's space market (projected at USD 22 billion) by 2033.
- Global Share: Target a five per cent share of the global space market.
The policy provides robust support across the space value chain, from the Upstream Segment (manufacturing of satellites, launch vehicles and propulsion systems) to the Downstream Segment (Earth Observation and Satellite Communications applications).
To facilitate this growth, the state plans to establish Space Manufacturing Parks across the state and has put in place financial incentives. These include subsidies up to Rs 1 crore (USD 1,20,000) for testing and quality certification for startups and MSMEs, and capital investment subsidies. Governance will be streamlined through a new Space Technology Cell under KITS, acting as a single-window clearance mechanism.
“Karnataka is powered by one of the world’s strongest knowledge ecosystems, supported by top universities, engineering colleges, ITIs and a highly productive workforce. With over 16,000 startups, 550 GCCs and 400 Fortune 500 companies, the state contributes 42 per cent of India’s IT exports worth Rs 3.2 lakh crore. This year marks a major milestone with the launch of three transformative policies — the IT Policy, Space Tech Policy and Startup Policy 2025-2030,” said Siddaramaiah, Chief Minister of Karnataka.
In September, the Siddaramaiah-led Karnataka government approved State Skill Development Policy-2025-32, which is expected to cost of Rs 4,432 crore. The state government is slated to next release its next policy that will be targeted towards startups.
“We are building a future-ready state through centres of excellence in AI, cybersecurity, robotics, quantum and the Beyond Bengaluru initiative to expand opportunities across districts. Karnataka continues to be India’s most trusted investment destination with clear policies and a culture that champions talent, innovation and global ambition,” CM Siddaramaiah added, speaking at Bengaluru Tech Summit 2025.
Industry Reaction Largely Positive
Industry leaders broadly welcomed the new policy framework, calling it a timely push that aligns Karnataka’s digital ambitions with India’s emerging innovation priorities.
Ashok Chandak, President of IESA and SEMI India, said the combined policy thrust would strengthen the state’s position across advanced manufacturing and deep-tech domains. “IESA applauds the renewed IT Policy and the newly announced Space Tech Policy and Start Up Policy; all these would complement Karnataka’s existing ESDM and semiconductor policies. Together, these progressive frameworks will unlock the next level of technology-led development for the state and significantly contribute to India’s overall growth journey,” he said.
Infosys Co-founder Kris Gopalakrishnan and said the policies signal a shift in how Karnataka’s large technology workforce must think about the future. “Karnataka has the largest tech talent base in the country. Such a talent base will now have to reimagine the role they are going to play — from a services-led growth to product-led growth,” he said, adding that professionals should explore whitespaces emerging from the new policy environment and collaborate across research institutions, startups and industry.
“Nobody is yet a leader in this product-led growth. But Karnataka can be a leader… jobs are changing and jobs will continue to evolve. We have to make sure that we stay relevant, be retrained and play an active role in making this happen,” he added.
Meanwhile, Prashanth Prakash, Partner at Accel and Chairperson of the Karnataka Vision Group on Startups, said the policy stack arrives at a crucial time as startups seek faster pathways to build globally competitive IP. “The new RDI scheme by the central government and many initiatives from Karnataka give startups the capabilities to land global IP from anywhere in the world into India and replicate it here,” he said.
“We don’t have another 10 years to build all the IP and academic capabilities for this. What we have are engineers and very capable startup entrepreneurs who can accelerate and build this as a lab for innovation by leveraging global IP,” Prakash added. |
