Bengaluru: In a significant boost to India’s entrepreneurial landscape, the Karnataka state cabinet on Thursday approved the Startup Policy 2025–2030, a five-year initiative with an outlay of ₹518 crore aimed at creating 25,000 new startups, including 10,000 in clusters outside Bengaluru. This ambitious plan underscores Karnataka’s commitment to consolidating its leadership in innovation and expanding its presence in emerging deep-tech sectors such as artificial intelligence (AI), blockchain, and quantum computing.
Officials in the IT/BT department said the draft policy would soon be made public for feedback. Besides financial support, the state government would also offer infrastructure, mentorship, and all necessary support to investors and entrepreneurs setting up ventures in Karnataka. Law and Parliamentary Affairs Minister H.K. Patil said Karnataka was already home to about 18,000 startups and would add another 25,000 under the new policy. “About 10,000 of them will come from clusters other than Bengaluru such as Mysuru, Hubballi, and Mangaluru,” he said.
The new policy builds on the foundation laid by the outgoing Startup Policy 2022–27, which also targeted 25,000 ventures. This time, however, it brings a sharper focus on emerging technologies, regional inclusion, and sustainable growth, mirroring the state’s ambitions of fostering a more inclusive and forward-looking entrepreneurial ecosystem.
Seven Key Pillars to Drive Growth
IT-BT Minister Priyank Kharge explained that the policy is based on seven strategic pillars:
Funding and Grants: Financial support provided at different stages of a startup’s growth.
Incubation and Infrastructure Support: Providing state-of-the-art facilities for innovation and growth.
Mentorship and Skill Development: Enhancing entrepreneurial capabilities with the help of industry veterans.
Market Access and Expansion: Supporting startups with scaling and accessing both domestic and international markets.
International Collaboration and Outreach – Reinforcing global partnerships through the initiative known as Global Innovation Alliances (GIA).
Inclusion and Sustainability: promotes socially responsible and environmentally sustainable business models.
Regulatory Facilitation: Ease of compliance and simplification of bureaucratic procedures for startups.
“Karnataka already stands as the unrivaled leader in India’s startup landscape, playing a pivotal role in positioning the country as a global hub for innovation and entrepreneurship. It is now pioneering this strategic initiative to further empower impact-driven business models, boost social entrepreneurship, and promote inclusive growth across the state,” Kharge underlined.
Karnataka’s Rising Global Footprint
Currently, Karnataka nurtures close to 50 of India’s 118 unicorns and is home to more than 18,000 registered startups, representing about 15% of all DPIIT-recognized startups in India. Backed by world-class institutions and progressive policies, the State continues to lead the charge in deep-tech, AI, and quantum technologies.
The rise of Bengaluru as a global startup city has been noteworthy. According to the Global StartupBlink Index 2025, the city now features in 10th position among the world’s top 20 startup hubs, indicating its growing global visibility and competitiveness.
The expanded policy further introduces the Global Innovation Alliances initiative in Karnataka, thus enabling startups to leverage international markets for growth through collaborations with leading innovation hubs. Such partnerships in more than 30 countries now address sectors like renewable energy, cleantech, and the circular economy, lending an international thrust to Karnataka’s innovations.
Regional Inclusion: Beyond Bengaluru
One of the policy’s salient features is its focus on regional inclusion. Though Bengaluru remains the epicenter of India’s tech ecosystem, the government is actively encouraging startups to come up in tier-2 cities like Mysuru, Hubballi, and Mangaluru. The idea is to make innovation decentralized and equal opportunity available in terms of resources, mentorship, and access to capital throughout the state.
Implications for India’s Startup Ecosystem
This new policy of Karnataka sends a strong signal to entrepreneurs, investors, and global technology players that the state is determined to nurture high-growth startups while positioning India as a leader in next-generation technologies. The policy combines funding with infrastructure, mentorship, and international collaboration to establish an inclusive, innovation-driven, and sustainable startup ecosystem.
For startups, this translates into increased opportunities, reduced obstacles to growth, and access to global markets, while investors are confident in a well-structured and policy-backed environment for innovation. Conclusion The Startup Policy 2025–2030 is a bold step toward developing the entrepreneurial future of Karnataka. A comprehensive strategy, with a considerable financial outlay for the promotion of emerging technologies, will see the State further consolidate its position as India’s startup powerhouse, while enabling startups across the State to thrive, scale, and compete on the world stage.
