Policy enhance for establish to increase in cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalburgi, with 10,000 job creations.
In a massive move to support Karnataka’s image because of the tech capital, the state government, on Friday, introduced the Budget 2025-26, assigning a significant amount for AI initiatives.
The state assigned ₹300 crore for a Fund-of-Funds and a corpus investment of ₹100 crore for deep tech development, even as additionally putting apart ₹50 crore over 5-years for the Centre for Applied AI for Tech Solutions (CATS).
The government driven the startup ecosystem to enlarge then in cities including like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalburgi, with 10,000 job creations.
Presenting the calculated ₹4,09,549 crore budget, Karnataka Chief Minister Siddaramaiah declared that evolution initiatives, putting the state as a leader in technological invention.
Also, beneath the ‘Brand Bengaluru’ theory (to enhance infrastructure, service shipping, and traffic control), ₹1,800 crore was assigned for 21 schemes throughout the financial year 2025-26.
AI in Governance and Education
The Karnataka AI cell is evolving AI-based solutions by utilizing the technologies like computer imaginative and (NLP) Natural Language Processing and LLMs to improve governance.
“An AI-based Government, Order Summary and Information Withdrawal Tool will promote easy entrance to government information for officials and residents, the CM stated. Also, the AI-driven IPGRS 2.0 was introduced to enhance the public offence resolution, setting Karnataka in advance in the digital administration game.
Concentrating on the education sector, the government introduced the Kalika Deepa Programme in association with Ek-Step Foundation, elongating, AI-based learning tools to 2,000 faculties. The goal is to improves students’ English and Kannada language abilities and mathematical skills.
Karnataka also introduced an improved attendance management system in all government departments by using the latest technologies, inclusive of AI and (GIS) Geographic Information System. In addition, a ₹2 crore smart system is to be applied the use of AI to provide transcriptions of court proceedings, translations of judicial documents, and other information.
As part of the ₹667 crore Bengaluru Safe City venture, cameras were hooked up across Bengaluru, out of which 10 drones have been applied.
To monitor and control vehicular traffic AI-enabled electronic cameras will be installed at 60 locations in Davanagere, Dharwad, Kalaburagi, Belagavi, Chitradurga, Haveri, Hospet, Bellari, Vijayapura, and Dakshina Kannada districts on the price of ₹50 crore.
GCCs, IT and New Tech Get a Monetary Increase
Focusing to stimulate invention and entrepreneurship in towns apart from Bengaluru, a (LEAP) Local Economy Accelerator Program will be released in the recent year with a grant of Rs. 1,000 crore.
The state’s IT policy objectives fundings of $300 billion and jobs creation of 1.5 lakh, emphasizing cloud computing and rising technologies.
Karnataka will evolve Global Innovation Districts in Mysuru, Belagavi, Dharwad, and Bengaluru to bolster its management in GCCs as well. The GCC Policy 2020-2025 additionally targets for an funding of ₹5,000 crore, with an determination of creating 3.5 lakh jobs.
Also, Karnataka State Electronics Development Corporation Limited (KEONICS) will demonstrate 3 latest Global Technology Centres in Mangaluru, Hubli, and Belagavi as plug-and-play facilities.
The price range release also includes Quantum Research Park Phase-2, to be set up with a provide of ₹48 crore over 3 years in association with the Indian Institute of Science, Bengaluru.
Semiconductors and Electronics
The price range declared the constructing of a state-of-the-art PCB Park will be evolved in Mysuru on 150 acres, generating a committed ecosystem for electronics production, with an addition of ₹99 crore SensorTech invention Hub to inspire sensor studies and development.
In the broader context, Karnataka’s semiconductor pursuits are gaining momentum, with enterprises like Microsoft, Intel, Accenture, and IBM committing good significant fundings.
The state’s Industrial Policy 2025-30, unrevealed at Invest Karnataka 2025, ambitions to create 2 million jobs and attract substantial fundings in sectors like semiconductors and renewable energy. The Union price range for 2025–26 additionally helps those efforts with an accelerated allocation for semiconductors and electronics production.
To inspire electronic vehicle (EV) manufacturing and usage, a testing track of international standards and a contemporary EV cluster with not unusual infrastructure will be determine around Bengaluru at a price of ₹25 crore.
The Karnataka Biotechnology Policy additionally pursuits to attract ₹1,500 crore fundings via incentives, while the statistics centre policy ambitions for an funding of ₹10,000 crore with a complete capacity of 200MW.
Also, Karnataka’s AVGC-XR Policy 2024-29 additionally sees an funding of ₹150 crore with 30,000 jobs to be created.
The state signed MoUs totalling ₹10.27 lakh crore on the Global Investors’ Meet 2025, held in February this year, anticipating to generate over 600,000 job opportunities. The government envisions putting itself as a hub for Artificial Intelligence (AI), AI-driven governance, education, digital manufacturing, deep tech, Global Capability Centres (GCCs), biotechnology, and IT.
