Karnataka to unveil policy in 100 days to incentivize industries beyond Bengaluru

Shivakumar offers world-class office infrastructure at highly affordable costs, including office space in other cities of Karnataka for as little as 50 cents per square foot

Updated - July 25, 2026 12:43 am IST | Bengaluru

By Mini Tejaswi

Chief Minister D.K. Shivakumar on Friday said the government would introduce a policy within the next 100 days to encourage industries to establish operations beyond Bengaluru. The policy aims to offer world-class office infrastructure at highly affordable costs, including office space in other cities of Karnataka for as little as 50 cents per square foot. He was speaking at a meeting with the CEO community in the city.

Recalling his interactions with global leaders at the World Economic Forum in Davos earlier this year, Mr. Shivakumar said companies preferred Bengaluru because of its talent, ecosystem, and cost advantages. "Many States are competing, but companies tell us that if it costs them $3.50 elsewhere, they can achieve the same here at nearly $1 because of Bengaluru's ecosystem and talent advantage."

AI University

The Chief Minister called upon industry leaders to partner with the Karnataka government in shaping the State's next phase of growth. He also sought industry support and involvement in:

• Expanding world-class infrastructure beyond Bengaluru
• Establishing an AI University with industry participation
• Launching new policies to strengthen the technology ecosystem

Addressing CEOs in the city on Friday, Mr. Shivakumar said the State's software exports had crossed ₹4.36 lakh crore and are expected to exceed ₹5.5 lakh crore in the current financial year. "Behind every number is a young engineer getting a first job, a developer solving problems, and a family moving closer to its dreams."

Talking about the State's plans to build an AI university in partnership with the industry, he said he had detailed discussions with Google on this initiative. The university would serve as a centre for learning, innovation, collaboration, and public digital access, with a vision of introducing AI education to rural students from class 6 onwards.

Urging companies to adopt one government school each under their corporate social responsibility (CSR) programmes, he said, "We spend over ₹1 lakh per child in government education. Yet, we still have teacher vacancies. Government alone cannot do everything. We need your partnership."

Innovators Foundation

Speaking later at a media conference, IT and BT Minister Priyank Kharge said the government has announced the formation of an Innovators Foundation, an initiative aimed at positioning Karnataka as a global deep-tech leader.

"Through the foundation, we will support deep-tech start-ups, help them access global markets, and explore ways in which the government itself can adopt and utilise their innovations. It will function under a public-private partnership (PPP) model, another first-of-its-kind initiative in the country," said Mr. Kharge.

He further said that to fuel the growth of the State's start-up ecosystem, the government has launched deep-tech-focused Elevate Next, which comes with a grant of ₹1 crore — double the amount provisioned under the Elevate Programme. In January alone, this programme received 983 applications from various start-ups, indicating a positive response.

"Today, for the first time in India, we selected 33 promising deep-tech start-ups and distributed ₹33 crore in grants under Elevate Next. What is particularly encouraging is that 12 of the 33 start-ups are women-led. Of these 33 start-ups, 24 are from Bengaluru, one each from Hoskote, Udupi, Bidar, and Hubballi, while five are from outside Karnataka — Delhi, Maharashtra, and Telangana," the Minister said.

According to Mr. Kharge, the Indian Venture Capital Association will form a dedicated working group for deep tech. With the approval of the Chief Minister, a Deep Tech Working Group/Vision Group, led by industry representatives, would also be set up.