Karnataka Budget 2025: New IT policy to focus on cloud computing, emerging tech

Karnataka CM Siddaramaiah presenting the state Budget 2025.

Karnataka will implement a new IT policy this year, with focus on cloud computing and emerging technologies while expanding the state's tech footprint to tier 2 and 3 cities.

The policy, mentioned in the state’s budget on March 7, aims to reinforce Karnataka’s status as a global technology hub by attracting investment and generating job opportunities.

The programme will replace Karnataka's Information Technology Policy 2020-2025, which concludes this year. Its biggest takeaway was promoting IT growth beyond Bengaluru, with an aim to generate around 60 lakh direct and indirect employment opportunities over the five-year span.

In his budget speech, Chief Minister Siddaramaiah highlighted Karnataka’s leadership in global and national indices on entrepreneurship, information technology, and innovation.

The budget also proposed to set up a Centre for Applied AI for Tech Solutions (CATS) with an investment of Rs 50 crore over five years, positioning Karnataka as a leader in artificial intelligence (AI), the CM said.

To accelerate research in quantum technology, phase-2 of the Quantum Research Park will be set up in collaboration with the Indian Institute of Science, Bengaluru. The project will receive a grant of Rs 48 crore over the next three years.

The government has committed Rs 13,500 crore in subsidies and financial assistance to facilitate investments across sectors such as information technology, tourism, and biotechnology. These initiatives are expected to drive economic growth and generate investments worth Rs 1 lakh crore in the state.

GCCs in focus

Global capability centres (GCCs) also found a mention in the budget speech.

To further strengthen the state’s leadership in GCCs, Mysuru, Belagavi, Dharwad, and Bengaluru will be developed as global innovation districts by KEONICS.

KEONICS, or Karnataka State Electronics Development Corporation Limited, was established in 1976 to provide high-quality infrastructure for IT industries, spread IT education, and offer products and services for e-governance.

KEONICS will establish three new Global Technology Centres as plug-and-play facilities in Mangaluru, Hubli, and Belagavi.

Moneycontrol reported in July 2024 that KEONICS had decided to monetise its land holdings in Mysuru, Mangaluru, Hubballi, and Devanahalli near Kempegowda International Airport in Bengaluru.

On November 19, Karnataka unveiled India's first dedicated GCC policy, with an aim to create 3.5 lakh jobs and generate $50 billion in economic output.

The policy said the state would champion workforce empowerment and equity, flexible and adaptive work models, and sustainable and ethical business practices. Aiming to position Karnataka as a global hub for cutting-edge innovation by 2030, the policy seeks to nurture a diverse, future-ready workforce.