Karnataka Cabinet Approves Startup Policy 2025–2030 with INR 518 Cr Allocation The policy places strong emphasis on emerging technologies such as artificial intelligence, blockchain, quantum computing and semiconductor design.
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The Karnataka cabinet has approved the Startup Policy 2025–2030 with an outlay of INR 518.27 crore. The initiative aims to support the creation of 25,000 new startups over the next five years, including 10,000 in regions outside Bengaluru.
Priyank Kharge, Minister for Information Technology and Biotechnology, said the policy reflects the state's inclusive approach and its goal to position Karnataka as Asia's deeptech hub.
The policy places strong emphasis on emerging technologies such as artificial intelligence, blockchain, quantum computing and semiconductor design.
Key provisions include one-time capital grants of up to INR 50 lakh for private incubation centres, PF and ESI reimbursements of INR 3,000 per employee per month for the first two years (capped at INR 12 lakh per company), and subsidies for cloud storage and R&D.
To promote balanced growth, the policy provides targeted assistance to 10,000 startups outside Bengaluru, encouraging innovation in cities like Mysuru, Mangaluru, Hubballi-Dharwad and Kalaburagi.
Building on earlier frameworks introduced in 2015 and 2022 that supported more than 15,000 startups, this version adds regional development, sustainability goals and performance-linked incentives. It also focuses on promoting women-led ventures, research commercialisation and public-private partnerships in deeptech.
Through this initiative, Karnataka aims to strengthen its position as India's most advanced startup ecosystem and extend innovation opportunities across the state.
