Karnataka allocates ₹967 crore for IT incentives
The allocation establishes a five-year fiscal incentive framework that channels subsidies, reimbursements, and programme funding into location- and eligibility-based benefit tracks for IT units across Karnataka.
Change
Karnataka will spend ₹967 crore on incentives under the Information Technology Policy 2025–2030.
Why it matters
The package totals ₹967 crore, split into ₹754.62 crore for fiscal incentives and concessions over five years and ₹212.50 crore earmarked for government interventions such as fellowships and other programmes. Sixteen incentives are proposed for companies locating in cities beyond Bengaluru, including nine newly added incentives; six major incentives are proposed for units located in Bengaluru. New measures include support for faculty development, recruitment assistance, talent-relocation reimbursements, electricity duty reimbursement, and property tax reimbursement. The policy targets AI and other emerging technologies and identifies Mysuru, Mangaluru, Hubballi‑Dharwad, Belagavi, Tumakuru, Kalaburgi, and Shivamogga as emerging investment cities, with sector targets set through 2030.
Implications
- — Eligibility for the 16 outside‑Bengaluru incentives is conditioned on locating operations in designated non‑Bengaluru cities.
- — Six major incentives are reserved for units located in Bengaluru, creating separate benefit tracks by location.
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