Karnataka bets big: A second airport, AI city and Rs 1.5 lakh crore overhaul for Bengaluru's future

Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar with other during the inauguration of the Bengaluru Tech Summit 2025.

In a significant announcement aimed at consolidating Karnataka’s position as a global technology leader, the state government has unveiled a suite of new policies and detailed a colossal infrastructure investment for its capital, Bengaluru, exceeding Rs 1.5 lakh crore.

The revelations came at the inauguration of the Bengaluru Tech Summit 2025, where Chief Minister Siddaramaiah launched the Karnataka Space Technology, IT and Startup Policy 2025-30.

Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar used the platform to issue a robust defence of the government’s development agenda, urging public patience and cooperation.

Shivakumar acknowledged public concerns over infrastructure and appealed for confidence in the government's plans. He outlined a comprehensive investment of Rs 1.5 lakh crore dedicated to a 132-km network of projects aimed at decongesting the city.

Further expanding on the vision for regional development, he confirmed that a second international airport for Bengaluru is planned for the southern part of the city. He also announced two major projects: an international complex within the city to host global business houses and a world-class AI city spanning 9,000 acres near Bidadi.

Mega-projects for a mega-city



According to The New Indian Express, Shivakumar outlined specific projects, including a 40-km twin tunnel road costing Rs 42,500 crore, a 41-km double-decker metro line priced at Rs 18,000 crore and the 74-km Bengaluru Business Corridor at Rs 27,000 crore. The total infrastructure push, covering 132 km, is designed to overhaul the city’s transport network.

The location for the proposed second international airport, long discussed to alleviate pressure on the existing Kempegowda International Airport, is being finalised. As per reports, the government has shortlisted three sites on Kanakapura Road and one on Kunigal Road.

A new policy framework for the future



Alongside physical infrastructure, the government laid out a comprehensive digital roadmap. Chief Minister Siddaramaiah emphasised the state’s pioneering history, noting Karnataka launched India’s first IT policy in 1997. The new policies, he said, are aimed at transforming the state into a “global destination for innovation and deep tech.”

The Space Technology Policy sets an ambitious target of capturing 50% of the national market share — a $22 billion sector by 2033 — and 5% of the global market by 2034. A dedicated space technology cell will be established under the Karnataka Innovation and Technology Society (KITS) to drive this mission.

The new IT policy targets the generation of over 90 lakh (9 million) direct and indirect jobs before 2030. Siddaramaiah highlighted the state’s dominant position, accounting for 43.67% of the nation’s total software exports, valued at over Rs 3.2 lakh crore and growing at 27% annually.

Meanwhile, the Startup Policy aims to foster 25,000 new startups over the next five years through strategic interventions in funding and market access. Karnataka is already home to over 16,000 startups and accounts for nearly 47% of the country’s total startup funding.

Call for partnership and investment



Shivakumar appealed for corporate support to improve rural education through Corporate Social Responsibility (CSR) funds and advocated for companies to expand into Tier-2 and Tier-3 cities. He also announced plans to create a separate NRI investment cell and a residential layout for non-resident Indians to streamline services and attract further capital.

“People from across the globe are investing in Karnataka. They see Karnataka as the future tech capital of the world,” Shivakumar asserted, framing the development not as a choice but a necessity to keep pace with a booming population and global expectations.

In a symbolic launch, the Chief Minister also unveiled the KEO, an AI-ready personal computer designed and developed within the state, with a price tag of just Rs 18,999, underscoring the theme of indigenous innovation.

With the world watching — 60 nations are participating in the summit — the Karnataka government has laid down a formidable gauntlet: to build the physical and digital highways that will carry its tech ecosystem for the next decade, betting that this dual thrust will secure its future as an undisputed global hub.