Karnataka Digital Economy Mission (KDEM) has launched numerous initiatives to bolster digital infrastructure, promoting growth across software, startups, ESDM, and talent pools. By fostering innovation beyond Bengaluru and attracting global investments, KDEM is shaping Karnataka into a premier digital hub, shares Sanjeev Kumar Gupta, CEO, KDEM in an exclusive interaction with Krishna Mishra of Elets News Network (ENN). Edited Excerpts:
What initiatives has the Karnataka Digital Economy Mission (KDEM) undertaken to enhance digital infrastructure development in the state of Karnataka?
Our initiatives enable and guide growth and support for the key pillars of Karnataka’s Digital Economy. These include the software products and services sector, including GCCs; the startup landscape and innovation in Karnataka; the Electronics Systems Design and Manufacturing (ESDM) sector; supporting Karnataka’s talent pools; and the potential in the landscape and ecosystems beyond Bengaluru.
The Government of Karnataka has introduced various policies aimed at developing digital infrastructure, including IT parks across our clusters in Mysuru, Mangaluru, and Hubballi- Dharwad-Belagavi. New private infrastructure players have also developed class A buildings.
Various industry-led policies of Karnataka include:
- Startup Policy
- IT Policy
- Engineering Research and Development Policy
- ESDM Policy
- Biotechnology Policy
- AVGC Policy
- Datacenter Policy
- Electric Vehicles and Energy Storage Policy
- Aerospace and Defence Policy
- GCC Policy (upcoming)
The targets of our initiatives are to:
- Enable industry-friendly policies (including strong IP protection and improving the ease of doing business)
- Ensure outreach of these policies and incentives to startups and other stakeholders
- Support strong and vibrant startup ecosystems
- Attract investments from global players
- Create more jobs
- Provide resources to train and upskill our workforce
- Support the development of overall infrastructure and resources
KDEM facilitates soft landing across Bengaluru and other clusters, showcasing the readiness and ease of doing business while driving the above initiatives.
To what extent do you anticipate AI will contribute to India achieving the objective of a developed (Viksit) Bharat by the year 2047?
AI holds immense potential to transform India’s healthcare, education, agriculture, and governance sectors. The Government of Karnataka is well aware of the pivotal role that deep tech and other emerging technologies like AI and ML will play in the future. To promote this, they have facilitated the establishment of several Centers of Excellence (CoEs) focusing on innovation, R&D, and facility creation. Out of the 10+ CoEs under the Department of Electronics, IT, and BT, several, such as ARTPARK, MINRO, and SFAL, focus on fostering the development of these emerging technologies.
Alongside this, KDEM is creating an AI-conducive ecosystem by facilitating research collaborations between academia and industry in Karnataka. We are working with the industry to make AI responsible. Ongoing partnerships with Meta, Microsoft, IBM, and others on various skilling initiatives will help create a ready talent pool for global opportunities.
There are already several emerging regions outside of Bengaluru that have a strong base to research and construct these frameworks, such as Mysuru and Hubballi- Dharwad-Belagavi (HDB). To maximize AI’s contribution to a developed India, we need a skilled workforce and robust data privacy regulations. We already have over 4,000 strong workforces in the AI space in the HDB region with companies like Third Eye, iMerit, Dhiomics, Zeloit, and more.
Karnataka has the highest AI workforce in India, with over 70,000 currently.
Please elaborate on the role KDEM has played in bolstering the growth of Karnataka’s digital economy.
KDEM focuses on core sectors like IT Products & Services (including GCCs), Electronics System Design and Manufacturing (ESDM), and Startups. Initiatives like #BeyondBengaluru promotes digital growth outside of Bengaluru as well, such as in the HDB region. We’ve successfully attracted over 47 investments, fostered innovation, and created over 5000 jobs, all of which have bolstered Karnataka’s digital economy. We have also facilitated several cross-border interactions, hosting around 20 inbound delegations and enabling around 3 outbound delegations. We aim to continue fulfilling this role and continually raise the bar in the investments and jobs we bring to Karnataka and its digital economy.
Various platforms through which we reach out to global players:
- Roadshows: Participating in various events across domestic and international markets
- Industry reports
- Cluster events
- Job fairs
How is KDEM working to foster innovation, research, and development in emerging technologies such as AI, blockchain, and the Internet of Things (IoT) within the state?
KDEM fosters innovation in emerging technologies by enabling a network of research institutions, startups, and industry leaders working on Deeptech, ESDM, AI, Blockchain, IoT, and Industry 4.0. We support hackathons, accelerator programs, and funding opportunities for deep- tech ventures, driving cutting-edge advancements in Karnataka. KDEM is also working with the different CoEs under the Department of Electronics, IT, and Bt to ensure that startups in the state can utilize these centers and reap their benefits. We are the only state with an Engineering R&D policy that gives impetus to IP generation and global innovation. GCCs are expanding into Karnataka as they too see the value of working with startups for their innovation and niche technologies.
In your view, what are the biggest challenges and hurdles that Karnataka needs to overcome in order to cement its position as a leading digital economy in India?
Karnataka is doing exceedingly well across GCCs and ESDM, and with all the current policies and the aggressive outlook of our leadership, we aim to maintain our leadership position in India and globally.
It houses 400 Fortune 500 companies, is 1st in total exports among all Indian states, 1st in R&D centers, 1st in renewable energy, and was 1st in the India Innovation Index. Karnataka has the highest FDI among all states for the period from April to June (2020), and is the 4th largest technology cluster in the world. Karnataka is already an important player in the global market and is focusing on developing its strengths in emerging technology trends such as FinTech, Cybersecurity, Metaverse, and AI/ML. However, continuous skill development is crucial to keep pace with technological advancements.
Bengaluru is the startup capital of India, but bridging the resource gap with more support in regions outside of Bengaluru remains a high priority. Additionally, robust data security and privacy regulations are essential for building trust in the digital ecosystem. Karnataka has a good ease of doing business (EoDB) score. But it is essential to keep working with industry, academia, and the government to ensure we stay on track in supporting and growing our sectors, and tapping into and developing our full potential in all aspects of our digital economy.
How is KDEM facilitating job creation in Karnataka through the adoption and implementation of artificial intelligence (AI) technologies?
KDEM plays a vital role in skilling and upskilling the workforce for AI-driven jobs. With our Talent Accelerator vertical, we focus on providing resources and opportunities for graduates to gain skills across emerging IT hubs in Karnataka, and we carry out various initiatives. We partnered with the Department of Collegiate Technical Education (DCTE) on the #FutureDigitalJobs initiative to bridge the skill gap and create a future-ready workforce. We also have our flagship initiative with the Karnataka Skill Development Corporation for our Women@Work initiative, to amplify, strengthen, and support the women’s workforce.
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Another initiative undertaken by KDEM in association with the Department of Electronics, IT, and Bt is the Karnataka Skill Advisory Committee. The committee, chaired by Hon’ble Minister for Department of Electronics, IT, and Bt Shri Priyank M. Kharge and co-chaired by Hon’ble Minister for Medical Education and Skill Development Department, Government of Karnataka Dr. Sharanprakash R. Patil, has around 8 working groups dedicated to different sectors. One working group focuses on AI/ML, Blockchain, and Data Science, where industry and government collaborate to address the critical need for skilling in emerging technologies.
By creating a better curriculum, we aim to develop a more employable talent force for AI in the state. We partner with industry leaders to identify and create new job roles in the AI domain and encourage global partners to establish their bases Beyond Bengaluru, which helps create jobs and the potential for many AI-driven positions in the future. We advocate for responsible AI adoption to minimize job displacement and ensure a smooth transition.
What are some of the key focus areas and priorities for KDEM in driving the digital transformation of Karnataka over the next 3-5 years?
Some of our goals for the next year include:
- Attracting more GCCs to Beyond Bengaluru regions
- ESDM – from design to manufacturing
- Democratization of entrepreneurship
- Organizing industry-specific open houses and
increasing the number of DPIIT-registered startups - Increasing digital industry growth and investments
- Creating more jobs, with a heavy focus on generating them in the Beyond Bengaluru clusters
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Some of our key focus areas include upcoming sectors such as AgriTech, FinTech, Deep Tech, and CleanTech, to mention a few. We believe that fostering innovation in these sectors will have significant positive ramifications for Karnataka’s larger journey.