BENGALURU: The state cabinet on Thursday approved the new Karnataka Startup Policy 2025-2030, which aims to establish up to 25,000 startups, including 10,000 outside Bengaluru, over the next five years. A budget of Rs 518.27 crore has been approved for the implementation of the policy.
The policy adopts a comprehensive approach to strengthening the state’s startup ecosystem through targeted interventions in key areas, such as funding, incubation, infrastructure, mentorship, acceleration, R&D and industry collaboration.
IT/BT Minister Priyank Kharge noted that Karnataka already stands as the unrivalled leader in India’s startup landscape, playing a pivotal role in positioning the country as a global innovation and entrepreneurial hub. “This strategic initiative will further empower impact-driven business models, boost social entrepreneurship and promote inclusive growth in the state,” he said.
Karnataka currently hosts over 18,000 startups, accounting to 15 per cent of all recognised startups in India. As per the Department of Electronics, Information Technology, Biotechnology and Science and Technology, Karnataka is emerging as a national leader in DeepTech, AI and quantum technologies.
“Karnataka’s startup ecosystem continues to thrive, driven by sustained government efforts to foster innovation and entrepreneurship through targeted initiatives. Aligning with this, the new policy aims to make the state a national leader or a champion in the startup domain,’’ the proposal stated.
Between 2014 and 2024, startups based in Bengaluru raised $71.19 billion in funding. Interestingly, 50 per cent of all funded startups in India originate from the city. The Karnataka government further aims to boost this success across the state by providing financial backing for early-stage startups, as well as developing state-of-the-art incubation centres, Centres of Excellence and R&D hubs.
The policy also provides for funding of specialised training programmes, subsidies for industry certification, grants for startup-focused skilling initiatives and mentorship-driven financial support. It seeks to promote global partnerships and offer government incentives to help startups extend their and strengthen their market presence.
Tailored funding programmes, grants for women-led and rural ventures and support for grassroots entrepreneurship are other hallmarks of the policy. To ensure ease of doing business, the policy stresses on streamlining regulatory processes by promoting simplified compliance, single-window clearances and proactive engagement with relevant authorities.