In a move that signals India’s growing ambition to lead the next wave of technological innovation, the Government of Karnataka has approved a five-year startup policy (2025–2030) worth ₹518 crore (approximately $62 million).

The new policy aims to create 25,000 startups across emerging technologies, including artificial intelligence, blockchain, quantum computing, and robotics,while solidifying Karnataka’s position as India’s Deep-Tech Capital.

This isn’t just a state-level policy; it’s a blueprint for how regional governments can architect innovation ecosystems that rival global tech hubs.
From Silicon Valley to Singapore, the message is clear: the future of tech will be decentralized, deep-tech-driven, and government-backed.

A Policy for the Post-App Era

For over a decade, India’s startup landscape has been dominated by consumer internet and fintech. But as the market matures, the next frontier is deep technology, the fusion of science, hardware, and intelligence that powers industries of the future.

Karnataka’s ₹518 crore policy marks a strategic pivot from digital convenience to digital capability.

The Core Objectives:

1. 25,000 Startups by 2030 with a focus on AI, semiconductors, space tech, agritech, and robotics.
   
2. Dedicated Deep-Tech Fund providing grants, equity, and seed-stage support for R&D-heavy ventures.
   
3. Talent Acceleration – through partnerships with IITs, IIITs, and universities for research-to-market translation.
   
4. Global Market Access – facilitating cross-border partnerships with investors and accelerators.
   
5. Startup Hubs Beyond Bengaluru – encouraging Tier-2 and Tier-3 innovation zones in Mysuru, Hubballi, and Mangaluru.
   

This is not merely about funding startups, it’s about engineering an ecosystem that nurtures bold, science-backed innovation.

Why Deep Tech Matters Now !

Deep tech, spanning AI, blockchain, quantum computing, robotics, and advanced materials, represents the foundation of the Fourth Industrial Revolution.
Unlike typical startups that build apps or digital platforms, deep-tech ventures create fundamental breakthroughs that power entire industries.

The Global Context

• AI is reshaping productivity across manufacturing, healthcare, and finance.
  
• Quantum computing promises to break barriers in drug discovery and cryptography.
  
• Blockchain is redefining trust, identity, and data verification.
  

Countries like the US, China, and South Korea have already made massive state-led investments in deep tech recognizing that innovation sovereignty will define global competitiveness.
Now, India is entering that race, and Karnataka is leading the charge.

Karnataka: The Silicon Heart of India

Karnataka has long been India’s technology nerve centre, home to over 40% of the country’s startups, including unicorns like Byju’s, Swiggy, and Razorpay.
But beneath the consumer tech layer lies an emerging deep-tech foundation built by research institutions, global R&D centres, and government partnerships.

The Existing Ecosystem Advantage:

• 2,000+ R&D Centres from global giants like Intel, Bosch, and Samsung.
  
• Prestigious Institutions like IISc, IIIT-B, and ISRO’s headquarters fueling scientific innovation.
  
• Bengaluru’s talent density, one of the highest concentrations of tech professionals in the world.
  

Now, with the ₹518 crore policy, Karnataka aims to formalize and fund this latent potential, connecting research, startups, and industry through a unified innovation framework.

How the Policy Works: From Lab to Market

Unlike many startup policies that focus only on funding, the Karnataka Startup Policy 2025–2030 takes a full-stack approach, building a bridge from idea to impact.

1. Funding Innovation, Not Just Valuation

The policy emphasizes research-linked grants, prototype support, and equity-based deep-tech funding.
Early-stage startups in quantum computing, AI chips, or biotechnology will receive non-dilutive grants, enabling them to experiment without financial strain.

2. Public–Private Collaboration

Through partnerships with corporate R&D labs and venture funds, the state will co-invest in promising startups, creating a shared innovation network that benefits academia, government, and industry alike.

3. Regional Innovation Clusters

Bengaluru remains the nucleus, but the policy envisions decentralized hubs:

• Mysuru: Cybersecurity and blockchain innovation.
  
• Hubballi: Agritech and drone technology.
  
• Mangaluru: Marine and sustainability startups.
  

This regional spread ensures that innovation doesn’t remain urban-centric but becomes inclusive and distributed.

4. Global Partnerships

The policy encourages international collaborations with startup accelerators in Israel, Germany, and Singapore, promoting export-ready innovation.

Deep Tech: The Next Wealth Multiplier

Why is the world so focused on deep tech? Because it’s the only startup segment that compounds both economic and scientific value.

Take examples from around the world:

• OpenAI turned foundational research into a trillion-dollar influence.
  
• DeepMind (UK) pioneered AI for healthcare and energy efficiency.
  
• Rigetti and IonQ are redefining quantum computing from startup roots.
  

With proper support, India’s own deep-tech ventures could soon join that league, solving problems unique to the subcontinent while exporting technology globally.

The Multiplier Effect

Each ₹1 invested in deep-tech R&D can generate:

• ₹5–₹8 in economic output
  
• 3–5x increase in skilled job creation
  
• Exponential IP (Intellectual Property) growth
  

This isn’t just startup funding, it’s nation-building through innovation.

Policy Meets Purpose: A Global Model Emerging

Karnataka’s approach mirrors a growing trend in innovation-led governance seen worldwide:

• Singapore’s Enterprise Development Grant funds tech R&D.
  
• South Korea’s K-Startup Grand Challenge fosters AI and robotics firms.
  
• Israel’s Yozma Program turned public funds into venture capital success.
  

India’s federal system gives states autonomy, and Karnataka is proving that regional innovation policy can be more agile and future-facing than national programs.

If executed well, the state could become a living laboratory for AI and quantum innovation, with ripple effects across India’s startup ecosystem.

 The Deep-Tech Economy: Where India Wins

India already has the largest pool of software engineers and one of the world’s fastest-growing AI markets.
Karnataka’s focus on deep tech gives it a unique edge in three critical areas:

1. Talent Density :

With world-class universities and research institutions, Karnataka can produce the specialized talent required for quantum computing, AI ethics, and chip design.

2. Cost Advantage :

Deep-tech experimentation in India costs 60–70% less than in the US or Europe, making it an ideal base for global R&D operations.

3. Regulatory Agility :

By creating sandbox environments for testing emerging technologies, Karnataka can accelerate innovation cycles and attract international investment.

This trio- talent, cost, and agility, forms the perfect trifecta for deep-tech dominance.

Voices from the Ecosystem

Entrepreneurs and investors have welcomed the announcement, calling it “a defining moment for India’s innovation economy.”

• “This policy doesn’t just fund startups; it funds the future,” said a Bengaluru-based AI founder.
  
• “Finally, deep-tech innovation has a policy backbone,” added a venture capitalist specializing in frontier technologies.
  

These reactions highlight a critical truth: ecosystems thrive when governments act as enablers, not regulators.

The Road Ahead: Turning Policy into Impact

While the policy sets a visionary direction, execution will determine success.
The challenges include:

• Streamlining grant disbursal.
  
• Ensuring startups beyond Bengaluru access equal support.
  
• Aligning academia with real-world startup outcomes.
  
• Measuring success through IP creation, not just funding numbers.
  

If Karnataka can bridge these gaps, it won’t just attract startups, it will define the global playbook for deep-tech governance.

The Deep-Tech Decade Begins Here :

Karnataka’s ₹518 crore startup policy isn’t a routine administrative announcement.
It’s a strategic declaration that India is ready to move beyond service-led innovation and own the technology stack of the future.

As the world watches AI, quantum, and blockchain reshape economies, Karnataka is building the infrastructure, funding, and talent ecosystem to stay ahead of the curve.

The next decade of Indian entrepreneurship will be defined not by how many apps are built, but by how much intelligence is engineered.
And that revolution has just found its home, in the heart of Karnataka.