To strengthen startup ecosystem, Karnataka budget proposes incubation centres in tier-2 tech hubs

Karnataka Budget

The Karnataka government proposes to set up incubation centres across emerging technology clusters outside Bengaluru, as part of its efforts to strengthen the startup ecosystem in tier-2 cities.

The incubation centres will support early-stage startups with infrastructure, mentorship and access to industry networks, the budget for FY27, which was presented on March 6, said.

The move is aimed at expanding innovation activity across the state while reducing the concentration of startups and technology companies in Bengaluru.

The government has increasingly been pushing the development of technology ecosystems in cities such as Mysuru, Mangaluru, Hubballi-Dharwad and other emerging hubs.

By creating incubation facilities in these locations, the state hopes to encourage entrepreneurs to build companies closer to local talent pools and academic institutions, while also supporting regional economic growth.

Karnataka is already home to one of India’s largest startup ecosystems and the proposed incubation centres are expected to further deepen the pipeline of early-stage ventures in areas such as artificial intelligence, deep technology and enterprise software.

The initiative forms part of the government’s broader strategy to build technology corridors beyond Bengaluru and distribute innovation-led growth across multiple cities in the state.