Karnataka will be spending ₹967 crore towards varied incentives under the Karnataka Information Technology Policy 2025-2030 that seeks to bring significant investments with a special focus on AI and other emerging technologies in cities beyond Bengaluru, and elevate Karnataka’s brand globally as ‘AI-native destination’.
While 16 incentives, including nine newly added incentives, have been proposed to companies to be located in cities beyond Bengaluru, six major incentives have been proposed to units to be located in Bengaluru.
Many types of support
Among the new incentives being introduced are support for faculty development, recruitment assistance, and talent relocation reimbursements. The new policy covers operational costs through electricity duty reimbursement, property tax reimbursement and telecom infrastructure development besides EPF reimbursement, rental assistance and skilling cost reimbursement for companies located beyond Bengaluru.
The other incentives include internship cost reimbursement, intellectual property incentive, support faculty development programmes, reimbursement for quality certifications and power tariff concessions among others.
The financial outlay to implement the fiscal incentives and concessions for a period of five years is ₹754.62 crores, and ₹212.50 crores has been earmarked for government interventions such as fellowships and other programmes.
The proposed policy expands the scope to provide extension of benefits to Indian-headquartered Global Capacity Centres operating or establishing a presence in Karnataka. It covers both new and expanding entities.
Increasing GSVA
The goal is to increase the IT sector’s contribution to Gross State Value Added (GSVA) from 26% to 36% and increase software exports from ₹4.09 lakhs crore to ₹11.5 lakhs crore by 2030, besides driving investments in emerging cities such as Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Tumakuru, Kalaburgi, and Shivamogga.
To elevate the State’s IT and innovation ecosystem, the government through public-private partnership seeks to estabslihe ‘Technoverse’, integrated technology campuses within the upcoming Global Innovation Districts. It will offer future-ready tech eco system with advanced R&D labs, digital virtual testbeds, and sector-focused innovation zones among others.
Digital networks
It seeks to make the State with future ready digital network – Global Testbed Infrastructure Network and Statewide Digital Hub Grid – launch fellowship for 1,000 mid-career women tech professionals, IT talent return programmes, set up ease of doing business cell, and start shared corporate transport – IT Corridor Bus Pooling.
Exemption from standing order
In the non-fiscal support to the IT/ ITeS unit in Karnataka, the policy exempts companies from the applicability of Karnataka Industrial Employment (Standing Orders) Rules, 1946, for a period of five years, with appropriate clause for the protection of women employees and prevention of sexual harassment in workplace. The companies will be allowed to file self certification for compliance of appropriate laws.
Permission will be given for 24/7 operations to run in three shifts and employment of women in all three shifts. This is subject to taking necessary precautions with respect to safety and security in addition to providing welfare, health, and transport amenities.
Published – November 13, 2025 09:22 pm IST
