Karnataka cabinet approves Rs 518 crore start-up policy 2025-2030 to help create 25k AI, blockchain ventures

The Karnataka cabinet on November 6 approved the Karnataka start-up policy 2025-2030 with an outlay of Rs 518.27 crore.

The policy aims to facilitate the creation of 25,000 additional start-ups, including 10,000 from clusters beyond Bengaluru, focusing on Artificial Intelligence, Blockchain, Quantum Computing, and other DeepTech domains.

According to IT-BT department officials, the policy is designed to fuel breakthrough ideas and nurture the next generation of start-ups and innovations from Karnataka. "It will leverage the state's legacy of innovation, deepen global partnerships, and expand support across regions and sectors. Its strategic support areas include funding, incubation, infrastructure, investment opportunities, mentorship, acceleration, R&D, and industry collaboration. The implementation strategy focuses on funding and grants, incubation and infrastructure support, mentoring and skill development, market access and expansion, international collaboration, inclusion and sustainability, and regulatory facilitation," it said.

Priyank Kharge, Minister for Rural Development & Panchayat Raj, Information Technology & Biotechnology, said, "Karnataka already stands as the unrivalled leader in India's start-up 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."

Karnataka, the front-runner in start-up ecosystem

Karnataka now nurtures nearly 50 of India's 118 unicorns. As of 2025, the state is home to over 18,000 registered start-ups, accounting for 15% of all DPIIT-recognized start-ups in India. The state leads in DeepTech, AI, and Quantum Technologies, supported by world-class institutions and forward-looking policies.

According to the Global StartupBlink Index 2025, Bengaluru now ranks 10th among the world's top 20 start-up cities, marking a significant rise in its international standing. Karnataka has expanded its Global Innovation Alliances initiative, enabling start-ups to access global markets and collaborate with over 30 countries, with a focus on renewable energy, cleantech, and the circular economy.

The Department of Electronics, IT, BT, and S&T has also launched ‘The Grand Challenges Program’, providing a platform for start-ups to showcase innovative solutions addressing Environmental, Social, and Governance (ESG) challenges and Sustainable Development Goals (SDGs), positioning Karnataka’s innovations on the global stage.