The Karnataka State Cabinet has approved funding of over Rs 350 crore to boost technology and innovation across the state, with a strong push towards expanding the startup ecosystem beyond Bengaluru.
A key highlight is the allocation of Rs 75 crore for seed funding to support startups in Tier II and III cities such as Mysuru, Mangaluru, and Hubballi. This initiative aims to decentralize Karnataka’s innovation landscape, providing financial backing to emerging ventures outside the capital.
In a significant move for India’s semiconductor industry, the Cabinet has approved SFAL 2.0 (Semiconductor Future Accelerator Lab). This initiative is set to accelerate semiconductor design IP creation, support fabless startups and MSMEs in electronics, and build a skilled workforce, solidifying Karnataka’s position as a leading semiconductor hub.
Additionally, Rs 285 crore has been sanctioned for the development of the International Institute of Information Technology Bangalore (IIIT-B) as part of an Rs 817 crore expansion plan. The remaining RS 532 crore will be mobilized through CSR contributions and internal institute resources.
The state contributes over 25% of India’s software exports and is home to thousands of IT services and product companies.Bengaluru hosts several IT parks, including Electronic City, Whitefield, and Manyata Tech Park. Karnataka has also one of the highest concentrations of startups in India, with over 15,000+ startups across various domains like AI, fintech, health tech, and deep tech
These strategic investments reinforce Karnataka’s commitment to strengthening its technology infrastructure and fostering balanced regional growth, ensuring innovation-driven economic expansion beyond Bengaluru.
