The Karnataka government is embarking on an ambitious journey to cement its status as a global technology powerhouse, with State IT Minister Priyank Kharge declaring the next ten years as the "Deep Tech Decade" for the state. This strategic pivot is backed by a substantial financial commitment, beginning with a ₹600 crore fund dedicated to fostering innovation in emerging and foundational technologies. The initiative aims to create a fertile ecosystem for entrepreneurs and startups working on artificial intelligence, machine learning, quantum computing, advanced manufacturing, and other frontier technologies, positioning Karnataka as the undisputed deep tech capital of India. This vision represents a calculated move to not only maintain but significantly enhance the state's leadership in the rapidly evolving global technology landscape, moving beyond its established reputation in IT services to become a hub for profound technological research and development.

At the heart of this new agenda is a multi-pronged funding strategy designed to support startups at various stages and locations across the state. The government has announced a ₹600 crore deep tech fund, with the potential to expand up to ₹1,000 crore through collaboration with venture capital firms.[1][2] A significant portion of this, ₹150 crore, is allocated to the Deep Tech Elevate Fund, which is specifically designed to support AI and other advanced technologies.[1][3][4] Recognizing the need to distribute growth beyond its primary tech hub, the government has dedicated ₹80 crore to the Elevate Beyond Bengaluru Fund, which will foster startups in developing clusters like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi.[1][3][4] Further financial support includes ₹75 crore for the KITVEN Fund, offering equity-based investments to deep tech and AI startups, and ₹110 crore for establishing business incubators within higher education institutions to nurture innovation at an early stage.[1] To build a robust foundational ecosystem, ₹48 crore will be used to support new incubators and accelerators at institutions including IIT Dharwad and IIIT Dharwad.[1] The government also plans to explore a fund-of-funds or co-investment model with venture capital firms, earmarking an additional ₹200 crore for deep tech startups to leverage private capital and expertise.[1][5]

This financial commitment is a cornerstone of a broader strategic vision laid out in the forthcoming 'DeepTech Elevate Policy'.[6][2] The government's blueprint is not merely about funding but about creating an entire pipeline of innovation. A key platform for this initiative will be the upcoming 28th edition of the Bengaluru Tech Summit (BTS), which will feature the inaugural 'Future Makers Conclave'.[1][6] This event is designed to bring together over 10,000 founders, entrepreneurs, investors, and industry leaders, creating a dynamic marketplace for ideas and capital.[1][4][2][7] Minister Kharge has emphasized that the goal is to aggressively position Karnataka as a global player, stating, "Our blueprint is ready, and we are serious about being global players in the technology landscape."[1][5][2] The focus of the summit and the broader policy is to accelerate innovation in deep tech and AI, ensuring the state remains ahead of the curve in a fiercely competitive environment.[4][8]

Karnataka's push into the deep tech decade is built upon a formidable foundation of technological leadership that has been cultivated over three decades. The state already accounts for a significant portion of India's tech industry, with IT exports reaching ₹4.5 lakh crore, more than double its closest competitor.[8][9] It is home to over 47 of India's 110 unicorns and hosts more than half of the nation's deep tech startups.[8][9] The state also boasts 40% of India's engineering research and development skill sets and 38% of its semiconductor design talent.[10][8][9] This dominance is the result of what Minister Kharge refers to as the "triple helix" model—a synergistic collaboration between academia, industry, and government that is difficult for other regions to replicate.[9] The government has consistently been a first-mover in policy, introducing the country's earliest IT, biotech, and startup policies, and more recently, policies for electric vehicles, battery storage, and even a draft space tech policy.[10][8] The new deep tech initiative is a natural evolution of this long-term strategy, building on the success of programs like 'Beyond Bengaluru', which aims to stimulate innovation and create jobs in cities outside the capital.[11][12]

The implications of this focused government intervention are profound for the AI and technology sectors. By allocating substantial public funds, the state government is effectively de-risking early-stage investment in deep tech, an area often characterized by long gestation periods and high capital requirements. This move is expected to spur a new wave of innovation and encourage entrepreneurs to tackle complex technological challenges. The collaborative model with venture capitalists further amplifies the impact, signaling strong investor confidence and ensuring that promising startups have access to both capital and mentorship.[7] The deliberate strategy to foster tech ecosystems in tier-2 and tier-3 cities promises to create new innovation clusters, distribute economic opportunities more evenly, and tap into a wider talent pool across the state. For the AI industry specifically, the dedicated funding and policy support signal that Karnataka is not just a participant but aims to be a global leader in AI research, development, and application, creating a robust environment for both established companies and emerging startups to thrive.

In conclusion, Karnataka's declaration of a "Deep Tech Decade," backed by a significant and strategically allocated ₹600 crore fund, marks a pivotal moment in its journey as a technology leader. This is not merely a financial announcement but a comprehensive strategy to build an entire ecosystem capable of producing world-class solutions in AI and other frontier technologies. By leveraging its existing strengths in talent, research, and industry collaboration, and by extending its focus "Beyond Bengaluru," the state is laying the groundwork for sustainable and inclusive growth. The initiative solidifies Karnataka's intent to move up the value chain, from a leader in IT services to a global hub for deep tech innovation, ensuring it remains at the forefront of the next technological revolution for years to come.