The government of Karnataka has unveiled a sweeping ₹967-crore strategic plan designed to fundamentally reshape its technology landscape, aiming to nearly triple its software exports and establish the state as a dominant force in the global space technology sector. Through a series of ambitious, interconnected policies approved in November, the state intends to push its technology sector beyond its Bengaluru hub, foster deep-tech innovation, and attract high-level global talent. The comprehensive strategy is built upon the new Information Technology (IT) Policy 2025-2030, a dedicated Space Technology Policy 2025-2030, and complementary frameworks for Global Capability Centers (GCCs) and startups, signaling a concerted effort to secure Karnataka's position as a premier technology destination for the next decade.

At the heart of this initiative is the IT Policy 2025-2030, which carries a substantial financial commitment of ₹967.12 crore.[1][2] The policy sets forth formidable goals: to increase software exports from the current ₹4.09 lakh crore to ₹11.5 lakh crore by 2030 and to elevate the IT sector's contribution to the state's Gross State Value Added (GSVA) from 26% to 36% within the same period.[3][2][4] To achieve this, the government is heavily incentivizing the dispersal of the tech industry beyond the congested infrastructure of Bengaluru. The "Beyond Bengaluru" initiative is supported by a robust package of fiscal benefits for companies establishing or expanding operations in emerging cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Belagavi.[3][1][4] These incentives include significant operational cost reductions, such as a 50% reimbursement on rent, a 30% property tax reimbursement, a complete waiver of electricity duties for five years, and subsidies on telecom and internet expenses.[5] This strategic decentralization aims to create new innovation clusters and alleviate the strain on Bengaluru's resources while spreading economic growth across the state.[5]

A crucial component of the strategy is the cultivation and attraction of a world-class talent pool, with a particular focus on Artificial Intelligence and other deep-tech domains. The government's vision is to position Karnataka as an "AI-native destination," integrating artificial intelligence across industry and public services to unlock new economic opportunities.[3][2][6] A key initiative under the new IT policy is the "IT Talent Return Programme," designed to attract mid-career Indian tech professionals currently working overseas.[1][4][6] This program, supported by a dedicated digital portal, aims to connect this experienced diaspora with leadership, research, and mentorship roles within Karnataka-based companies, capitalizing on a global trend of layoffs and visa uncertainties in other nations.[1][4][6] Further bolstering the talent pipeline, the policy introduces support for faculty development, recruitment assistance, and relocation reimbursements of up to ₹50,000 per employee moving to the state.[3][1] This human capital focus is complemented by a new Startup Policy that aims to foster 25,000 new ventures, with 10,000 of them targeted for regions "Beyond Bengaluru," ensuring a continuous flow of innovation and entrepreneurship.[7][8][9]

Beyond software and AI, Karnataka is making a bold play for the final frontier with its Space Technology Policy 2025-2030. The policy's ambition is to capture 50% of India's national space technology market and carve out a 5% share of the global market.[2][10][11] To realize this, the state aims to attract $3 billion in investments from global and domestic space sector companies over the next five years.[2][10] The plan includes direct support for 500 startups and MSMEs in the space sector, with grants to enable the design, manufacturing, and operation of 50 satellites from within Karnataka.[10] A significant emphasis is placed on workforce development, with a target to train 50,000 young professionals and students to meet the highly skilled demands of the space industry.[2] The policy will support enterprises across the entire value chain, from space asset development and launch infrastructure to next-generation capabilities like space tourism and in-orbit manufacturing.[10]

The overarching vision is further solidified by a dedicated policy for Global Capability Centers (GCCs), which are a vital source of growth and employment. This policy aims to attract 500 new GCCs by 2029, which is projected to create 3.5 lakh new jobs and generate an economic output of $50 billion.[12] The framework offers a similar mix of financial incentives and infrastructure support, particularly for centers established outside Bengaluru, including rent assistance, EPF contribution reimbursements, and exemptions from electricity duties.[12][13] By establishing new tech parks and a dedicated Centre of Excellence for AI, Karnataka seeks to provide a globally competitive ecosystem for these corporate innovation hubs.[12] Together, these interconnected policies represent a holistic and aggressive strategy to not only sustain but significantly expand Karnataka's technological prowess. By tripling exports, decentralizing growth, fostering deep-tech innovation in AI and space, and actively attracting global talent, the state is laying the groundwork to become a more resilient, diversified, and globally influential technology hub.