Karnataka Cabinet Approves Startup Policy to Establish 25,000 Startups Over Five Years

The state cabinet has approved the new Karnataka Startup Policy for 2025-2030 on November 6, which aims to establish up to 25,000 startups over the next five years, including 10,000 in regions outside Bengaluru. 

As IT Minister Priyank Kharge posted on LinkedIn, the policy has an outlay of ₹518.27 crore and focuses on nurturing future-ready companies in areas such as AI, blockchain, quantum computing, semiconductor design, and other DeepTech domains. Cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi will play a key role in this initiative.

 The policy adopts a holistic approach to enhance the state's startup ecosystem through targeted efforts in key sectors, including funding, incubation, infrastructure, mentorship, acceleration, research and development, and collaboration with industry.

From 2014 to 2024, startups in Bengaluru secured $71.19 billion in funding. Notably, half of all startups that received funding in India originate from this city, according to media reports. The Karnataka government also intends to expand this achievement throughout the state by offering financial support for early-stage startups and establishing advanced incubation centres, Centres of Excellence, and research and development hubs.

“Karnataka’s startup ecosystem continues to thrive, driven by sustained government efforts to foster innovation and entrepreneurship through targeted initiatives. Aligning with this, the new policy aims to make the state a national leader or a champion in the startup domain,’’ the proposal stated, as reported by The New Indian Express. 

The policy highlights customised funding, grants for women-led and rural enterprises, and support for grassroots entrepreneurship. It aims to simplify business operations by promoting easier compliance, one-stop clearances, and proactive communication with relevant authorities.

“The policy will strengthen the entire lifecycle of a startup from funding and incubation to market access, global partnerships and regulatory support. We have also expanded our Global Innovation Alliances to open doors for Karnataka startups in international markets across 30+ countries,” Kharge said.