Karnataka Budget 2025: Government Allocates Rs 1,000 Crore For Startup Accelerator Program, Rs 50 Crore For AI

The Karnataka government will be allocating Rs 50 crore to establish a Centre for Applied Artificial Intelligence for Tech Solutions. It will also be granting Rs 1000 crore to launch a Local Economy Accelerator Program, Chief Minister Siddaramaiah said in his state budget speech on Friday.

With the allocation, the state aims to make Karnataka a leader in the field of AI. The investment in the centre will be made over the next five years.

“To promote the development of quantum technology, a Quantum Research Park Phase-2 will be set up with a grant of Rs 48 crore over the next three years in collaboration with the Indian Institute of Science, Bengaluru,” Siddaramaiah said in his speech.

He also noted that a new IT policy will be implemented in the year 2025 with the aim of further strengthening the state's presence in the field of information technology. This new policy will emphasise cloud computing and the development of emerging technologies and expand information technology to tier-2 and tier-3 cities. 

In order to further strengthen Karnataka's leadership in the Global Capability Centres, Global Innovation Districts will be developed by Karnataka State Electronics Development Corporation (KEONICS) in Mysuru, Belagavi, Dharwad, and Bengaluru, the budget mentioned. New sub-regional science centres will be established in Kolar, Ramanagara, Chitradurga, and Vijayanagara districts. A provision of Rs 9 crore will be made in the current year. 

The state will also be developing a PCB Park in Mysuru on 150 acres of land, creating a dedicated ecosystem for electronics manufacturing. The chief minister also said a SensorTech Innovation Hub will be set up at a total cost of Rs. 99 crore in collaboration with the Government of India and in partnership with industry to encourage research and development, skills and ecosystem development for sensors in Karnataka. 

“KEONICS will establish three new Global Technology Centres as plug-and-play facilities in Mangaluru, Hubli and Belagavi. An Agri-Tech Accelerator will be established in Kalaburagi for technology integration in the agriculture sector. A flat factory with a plug-and-play facility will be set up in Kalaburagi,” Siddaramaiah noted in his speech.

Startup Focus

The state government, to stimulate innovation and entrepreneurship in cities other than Bengaluru, will be launching a Local Economy Accelerator Program in the current year with a grant of Rs. 1,000 crore.

“An allocation of Rs 200 crore has been made during the present financial year. This initiative will aim at creating 5 lakh employment opportunities across the state. The following initiatives will be taken up under this program,” the chief minister said. 

He also mentioned that a startup ecosystem will be developed in Mysuru, Mangaluru, Hubballi-Dharwad, and Kalburgi. A lifecycle approach will be followed to set up incubators, accelerators, centres of excellence and global technology centres. Further, Rs 300 crore will be allocated for a fund-of-funds, and a corpus fund of Rs 100 crore for deep-tech development will be earmarked.