Karnataka CM announces 100-day policy to boost industries outside Bengaluru

Chief Minister D.K. Shivakumar announced on Friday that the Karnataka government will introduce a policy within the next 100 days to encourage industries to establish operations beyond Bengaluru. Speaking at a meeting with CEOs in the city, he said the policy will offer world-class office infrastructure at highly affordable costs, including office space in other cities of Karnataka for as little as 50 cents per square foot.

Shivakumar recalled his interactions with global leaders at the World Economic Forum in Davos earlier this year, noting that companies prefer Bengaluru for its talent, ecosystem, and cost advantages. He quoted that what costs $3.50 elsewhere can be achieved at nearly $1 in Bengaluru due to the city's ecosystem and talent.

The Chief Minister called upon industry leaders to partner with the government in shaping the state's next phase of growth. He sought industry support for expanding world-class infrastructure beyond Bengaluru, establishing an AI University with industry participation, and launching new policies to strengthen the technology ecosystem.

Addressing the CEOs, Shivakumar said the state's software exports have crossed ₹4.36 lakh crore and are expected to exceed ₹5.5 lakh crore in the current financial year. He emphasized that each number represents a young engineer getting a first job, a developer solving problems, and a family moving closer to its dreams.

Regarding the proposed AI university, Shivakumar said he had detailed discussions with Google on the initiative. The university would serve as a centre for learning, innovation, collaboration, and public digital access, with a vision of introducing AI education to rural students from class 6 onwards.

He urged companies to adopt one government school each under their corporate social responsibility (CSR) programmes, noting that while the government spends over ₹1 lakh per child in government education, teacher vacancies persist. 'Government alone cannot do everything. We need your partnership,' he said.

Later, IT and BT Minister Priyank Kharge announced the formation of an Innovators Foundation aimed at positioning Karnataka as a global deep-tech leader. The foundation will support deep-tech start-ups, help them access global markets, and explore ways for the government to adopt their innovations. It will operate under a public-private partnership (PPP) model.

Kharge also launched Elevate Next, a deep-tech-focused programme with grants of ₹1 crore, double the previous amount. He said 983 applications were received in January, and 33 promising deep-tech start-ups were selected, receiving ₹33 crore in grants. Notably, 12 of the 33 start-ups are women-led, 24 are from Bengaluru, and five from outside Karnataka.

Kharge added that the Indian Venture Capital Association will form a dedicated working group for deep tech, and a Deep Tech Vision Group led by industry representatives will also be set up.

Mahadesha V, Director of the Software Technology Parks of India (Bangalore), stated that Karnataka remains the undisputed leader in technology business, contributing 43.5% of national IT exports with an 18% growth rate, compared to the national average of 8-9%.