Karnataka plans to invest ₹967 crore to enhance its IT sector, focusing on AI and emerging technologies beyond Bengaluru. This initiative aims to boost the state's global brand as an AI-native destination.

The Karnataka government has announced a ₹967 crore investment under its IT policy for 2025-2030, focusing on attracting investments in AI and other emerging technologies, particularly in cities beyond Bengaluru. The financial plan includes ₹754.62 crore for fiscal incentives and ₹212.50 crore for government interventions like fellowships. New incentives will support faculty development, recruitment, and operational costs, including electricity and property tax reimbursements. The policy aims to increase the IT sector's contribution to the Gross State Value Added (GSVA) from 26% to 36% and boost software exports from ₹4.09 lakh crore to ₹11.5 lakh crore by 2030. It also plans to establish integrated technology campuses and improve digital infrastructure. Non-fiscal support includes exemptions from certain employment rules and provisions for 24/7 operations, ensuring safety and welfare for women employees.