Karnataka has announced a new set of IT, IT-enabled services and space technology policies designed to strengthen the state’s position as a global technology hub while encouraging more balanced regional development. The announcement marks one of the most significant updates to the state’s digital roadmap in recent years as the government looks to support emerging technologies, expand job creation and attract long term investments beyond Bengaluru.
The new policy cycle has been developed to accelerate innovation in artificial intelligence, semiconductor design, space based applications, software services and digital infrastructure. According to state officials, the policies aim to retain Karnataka’s leadership in India’s technology landscape while addressing the growing need to distribute opportunities across tier two and tier three regions. Bengaluru continues to be the country’s largest tech cluster, but the government has stated that long term competitiveness will depend on building strong satellite clusters in cities such as Mysuru, Hubballi, Mangaluru and Belagavi.
The policy includes a mix of fiscal incentives, infrastructure commitments and special programmes for startups and skilled professionals. One of the major highlights is a renewed focus on job creation. Government estimates project that the IT and related sectors could enable close to 90 lakh direct and indirect jobs by 2030. The policy also outlines plans for strengthening local talent availability by creating new training centres and encouraging global return programmes for Indians working overseas. Officials noted that the need for specialised skills in AI, cybersecurity, robotics, data engineering and deeptech applications has grown sharply, and the state will work with industry bodies to expand training capacity.
A key element of the initiative is the formal expansion of IT growth zones outside Bengaluru. Cities that meet specific infrastructure benchmarks will receive incentives to host tech parks, research clusters, innovation centres and industry partnerships. These benefits include land facilitation support, streamlined regulatory processes and subsidies for companies that set up operations in designated zones. The government stated that this approach is designed to help decongest Bengaluru while offering companies the opportunity to operate at lower costs with access to strong talent pools.
In addition to IT and digital services, the state has introduced a dedicated space technology policy that supports satellite manufacturing, launch services, data analytics and space based communication systems. Karnataka has a long history of space sector participation through the Indian Space Research Organisation headquartered in Bengaluru. The new policy aims to leverage that foundation to create a broader commercial ecosystem. Private companies, research institutions and startups will be encouraged to collaborate on projects involving satellite constellations, navigation systems, earth observation platforms and downstream applications for sectors such as agriculture, telecom, urban management and disaster response.
Officials have emphasised that the new policies align with the Centre’s focus on expanding India’s digital economy and domestic capabilities in critical technologies. The frameworks are also designed to attract global companies looking for stable long term investment destinations. Industry executives have responded positively, stating that Karnataka continues to be well positioned to build future facing technology clusters due to its mature engineering talent base, strong research institutions and availability of early stage startups.
Stakeholders have also pointed out that the emphasis on tier two and tier three cities could help reduce pressure on Bengaluru’s infrastructure. Over the past decade, concerns have grown about traffic congestion, rising real estate costs, water scarcity and urban stress. The government’s decision to redirect incentives to other regions has been viewed as a strategic move to distribute economic growth more evenly while preserving Bengaluru’s innovation leadership.
The policy incorporates support measures for startups, including incubators, access to testing facilities, expanded grant programmes and government backed platforms for collaboration between academia and industry. These initiatives are expected to accelerate the development of local AI companies, space tech ventures and enterprise technology startups. The government stated that nurturing homegrown innovation will be critical to maintaining technological independence and supporting global competitiveness.
International investors have taken note of Karnataka’s renewed commitment to building a diversified tech ecosystem. Industry observers say that the combination of favourable policy frameworks, steady demand from global enterprises and widespread digital adoption in India may allow the state to attract new investment flows over the next three to five years. With advanced technologies becoming central to manufacturing, services and governance, states are competing to create attractive conditions for companies designing AI models, robotics systems, satellites and cloud infrastructure.
Karnataka’s technology sector currently contributes a significant share to India’s overall IT exports. The state has emphasised that the updated policy will ensure its continued leadership while preparing for shifts driven by AI automation, next generation devices, secure cloud computing and deeptech. Industry experts have noted that such proactive government action is essential as the global technology landscape becomes increasingly competitive and innovation cycles shorten.
The new IT and space tech policies will be implemented in phases, with periodic assessments to measure progress. The government has indicated that it will work closely with industry groups, multinational corporations and academic institutions to ensure smooth execution. With this announcement, Karnataka aims to reinforce its role as the country’s most established technology destination while expanding opportunities to new regions and emerging sectors.