The Karnataka government is considering a new policy that would allow deep tech startups to pilot their solutions with government departments on a small scale. If the pilot proves successful, the state will endorse the technology to encourage wider adoption, said Karnataka’s Information Technology Minister Priyank Kharge.
“We are mulling over a policy where startups, especially deep tech startups, can pilot with the government in a very small way. And if the pilot is successful, then we endorse the technology,” Kharge said at the IVCA Circles event in Bengaluru on November 12.
Kharge, who is also the minister for Electronics, Biotechnology, and Rural Development & Panchayat Raj, was joined by Rajan Anandan, Managing Director at Peak XV Partners.
Anandan pointed out that while India has seen a surge in deep tech ventures, from space tech to advanced battery recycling, regulatory bottlenecks often slow their progress.
Industry flags need for a ‘green channel’
Anandan suggested that a “green channel” approval mechanism would help deep tech startups that require manufacturing facilities or physical infrastructure.
“Unlike software or AI-first companies, many deep tech firms need to set up factories. Getting approvals can be extremely time-consuming. A green channel for such startups could really help,” he said.
Policy push to keep pace with emerging technologies
The minister said the government is aware of these challenges and is working to align its policies with evolving technologies.
“It’s not just about ease of doing business. Companies are coming to us saying the technology has changed, and our policies need to change too,” Kharge said.
On March 7, the Karnataka government had announced a Rs 100 crore deep-tech corpus as part of its 2025 budget, aimed at strengthening the innovation ecosystem and boosting entrepreneurship beyond Bengaluru.
The state cabinet also approved its Startup Policy 2025-2030 on November 6, with an outlay of Rs 518.27 crore to support the creation of 25,000 new startups.
Government open to acting as ‘first customer’
Kharge added that regular engagement between industry and policymakers is critical for keeping regulations current.
Many of Karnataka’s recent policy changes in areas such as quantum computing, renewable energy, and data centres have stemmed from direct industry feedback.
He said there is a growing need to create demand for deep tech solutions in critical sectors like defense and space, noting that the state is open to being the “first customer” for startups offering impactful solutions.
Grants, entrepreneurship schemes driving momentum
Karnataka’s existing startup initiatives, including the ELEVATE grants and the Rajiv Gandhi Entrepreneurship Programme, have already helped several founders bootstrap their ideas and attract follow-on funding.
“Whether it is the Elevate grants or our Centres of Excellence, these are like life jackets that help entrepreneurs survive till investors take notice,” Kharge said, adding that more than 60 percent of startups that received Elevate grants have gone on to raise subsequent rounds of funding.
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