Karnataka Cabinet Approves ₹518 Crore Innovation Policy: Targets 25,000 Start-Ups

The Cabinet of the Government of Karnataka on Thursday approved the Innovation Policy 2025-2030, committing a budget of ₹518.27 crore to bolster the state’s start-up and innovation ecosystem. 

The policy is designed to help Karnataka reinforce its leadership in new-age technologies and spread entrepreneurship beyond Bengaluru.

Policy Objectives and Structure

The policy sets a target of 25,000 new start-ups over the 5 years, with 10,000 of them located outside Bengaluru, in clusters like Mysuru, Hubballi and Mangaluru. It emphasises emerging tech segments such as AI, deep-tech, clean energy and biotech.

It is structured around 7 pillars: funding and grants; incubation and infrastructure support; mentorship and skill-development; market access and expansion; international collaboration; inclusion and sustainability; and regulatory facilitation.

Current Ecosystem and Strategic Implications

Karnataka already hosts over 18,000 registered start-ups, accounting for around 15 % of all those recognised by the DPIIT. The state is home to roughly 50 of India’s 118 unicorns, and its capital Bengaluru now ranks 10th among the world’s top 20 start-up cities, according to the Global StartupBlink Index 2025.

By earmarking ₹518.27 crore and targeting regional inclusivity, the policy aims to deepen the ecosystem across tier-2 and tier-3 regions, accelerate high-growth ventures, and foster global linkages for entrepreneurs.

Read More: Karnataka Announces ₹600 Crore DeepTech Investment to Boost AI and Inno!

Conclusion

With the Innovation Policy 2025-2030, Karnataka has laid down ambitious targets and resources to expand its start-up engine, decentralise growth and take a leading role in future-technology domains.

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