The Karnataka government has launched an ambitious new Information Technology Policy for 2025-2030, introducing a comprehensive package of 16 incentives designed to disperse the state's thriving IT sector beyond the congested confines of Bengaluru. This strategic initiative, branded "Beyond Bengaluru," aims to foster robust technology hubs in tier-two and tier-three cities, addressing infrastructural strains on the capital while promoting equitable economic growth across the state. With a significant financial outlay of ₹967.12 crore over the next five years, the policy places a strong emphasis on attracting investment in emerging technologies, particularly artificial intelligence, with the goal of cementing Karnataka's status as a globally competitive, "AI-native" destination.[1][2][3][4] The move is a deliberate departure from previous strategies, which were largely centered on the Bengaluru urban district.[5]

A cornerstone of the new policy is a suite of aggressive financial incentives aimed at significantly lowering the operational costs for companies establishing or expanding their presence in cities such as Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Kalaburagi, and Shivamogga.[5][2] To mitigate the initial financial burden, the government is offering substantial support on real estate and utility expenses. Companies can claim a 50% reimbursement on rent for their first year of commercial operations, with a cap of ₹50 lakh for larger teams.[6] Furthermore, new units operating beyond Bengaluru will benefit from a full reimbursement of their electricity duty for five years and a 30% reimbursement on property taxes for the first three years.[6][5] Recognizing the critical need for robust connectivity, the state will also subsidize 25% of annual internet and telecom costs for three years, up to ₹6 lakh.[6][5] These fiscal measures are designed to tackle key cost barriers and accelerate the development of new innovation clusters by reducing both capital and operational expenditures during the crucial initial years.[5]

Beyond reducing operational overhead, the policy is structured to cultivate a skilled workforce and stimulate innovation across the state. A major highlight is the provision for research and development, with the government committed to funding 40% of eligible R&D spending, up to a ceiling of ₹5 crore for units anywhere in the state.[6] Intellectual property creation is also being encouraged, with support for patent filing fees covering up to ₹3 lakh for domestic patents and ₹10 lakh for international patents for units outside Bengaluru.[6] To build a ready talent pipeline, the state will reimburse companies for half of an intern's stipend for three months, for up to 100 interns.[6] The incentives for talent acquisition are scaled, with firms hiring between 701 and 999 employees eligible to claim 50% of their recruitment costs, up to ₹7 crore.[6] Additionally, to encourage the movement of experienced professionals, the government will cover half of the relocation costs, up to ₹50,000 per employee, for those moving to these emerging tech hubs.[6]

The policy's overarching vision extends beyond decentralization to firmly establish Karnataka as a leader in the next wave of technological innovation, with a special focus on artificial intelligence. The government's aspiration is to make the state an 'AI-native' destination, integrating AI seamlessly into its dominant IT sector to unlock new economic opportunities and enhance public service delivery.[2][7] This focus is supported not just by financial incentives but also by significant infrastructure development plans. A flagship proposal is the creation of 'Techniverse,' which are integrated, technology-enabled enclaves to be developed through public-private partnerships.[1][8] These campuses will house plug-and-play facilities, dedicated AI and cybersecurity labs, advanced testbeds, and experience centers.[1][8] This forward-looking strategy was developed after extensive consultations with industry giants such as Infosys, Wipro, Google, and Accenture, as well as the industry body NASSCOM.[1][9] The ambitious plan aims to triple the state's IT exports to ₹11.5 lakh crore and increase the IT sector's contribution to the Gross State Value Added (GSVA) from 26% to 36% by 2030.[2][7]

In conclusion, Karnataka's multifaceted IT Policy for 2025-2030 marks a pivotal shift in its industrial strategy. By providing a robust framework of 16 distinct incentives, the state is making a concerted effort to guide investment and job creation into its developing cities, alleviating the pressures on Bengaluru's infrastructure. The comprehensive support, covering everything from operational costs and talent acquisition to cutting-edge R&D, creates a compelling proposition for IT and IT-enabled services companies. The policy's distinct focus on fostering an AI-centric ecosystem demonstrates a clear ambition to not only maintain but enhance its leadership position in India's technology landscape. This strategic decentralization is poised to create a more resilient, inclusive, and geographically diversified economic future for Karnataka, ensuring its continued prominence as a global technology and innovation hub.