In recent years, Karnataka has solidified its position as a premier destination for innovation and startups in India. The state’s proactive policies and robust infrastructure have encouraged an ecosystem that attracts entrepreneurs and investors alike. Notably, the state hosts more than 60% of India’s biotech companies, underscoring its dominance in this sector​​.

The state is home to 49 unicorns out of India’s total 118 unicorns including prominent names like Zerodha, Flipkart, and Ola, which have redefined industries from their base in Bengaluru. These unicorns embody the state’s entrepreneurial ecosystem’s resilience, innovation, and vision. Furthermore, 38% of India’s 435 soon-to-be unicorns are based in Karnataka. For four consecutive years, Karnataka has led NITI Aayog’s India Innovation Index, cementing its reputation as India’s foremost innovation hub​​.

The state’s commitment to nurturing startups is evident through initiatives like the “Innovate Karnataka” program, which provides financial support of INR 300 crore in grants and equity through various funds. Additionally, the establishment of the Karnataka Innovation Authority promotes and regulates innovative technologies, further reinforcing the state’s position as a leader in technological advancement​​.

Beyond Bengaluru, often dubbed the “Silicon Valley of India,” Karnataka’s innovation landscape extends to cities like Mysuru, Dharwad, and Mangaluru. These emerging hubs are creating dynamic opportunities in sectors like AI, agritech, and biotech, making the state a focal point for innovation across India.

Policies and Initiatives Driving Innovation

Karnataka’s startup ecosystem is bolstered by forward-looking policies and initiatives designed to empower entrepreneurs and foster innovation. The Karnataka Startup Policy 2022-27 aims to nurture 25,000 startups and generate 10 lakh jobs by 2027. This policy provides startups with access to funding, mentorship, and incubation support, ensuring a robust framework for growth​.

The ELEVATE 100 Program is another flagship initiative offering grants of up to INR 50 lakh to early-stage startups for developing proof-of-concept projects. Complementing this, the Idea2PoC Grant supports startups with seed funding of up to INR 50 lakh, focusing on areas such as deep-tech and ESG (Environmental, Social, and Governance) solutions​.

Recognising the potential of innovation beyond urban hubs, the Beyond Bengaluru Initiative is focused on developing startup clusters in cities like Mysuru, Mangaluru, and Hubballi-Dharwad. Programs like NAIN (New Age Innovation Network) further support innovation by establishing over 50 centres in engineering colleges across Tier-II and Tier-III cities​​.

To address social and environmental challenges, the Grand Challenges Karnataka program provides funding of up to INR 60 lakh per challenge. Meanwhile, women entrepreneurs benefit from dedicated support, including 25% of venture funds earmarked for women-led startups and exclusive capacity-building programs​.

On the global stage, the Global Innovation Alliances (GIA) program collaborates with over 30 countries, enabling Karnataka startups to access international markets and form strategic partnerships. The Karnataka Innovation Authority also plays a vital role in regulating and promoting disruptive technologies by offering regulatory sandboxes​​.

Success Stories from Karnataka

Will Karnataka Lead The Future?

Karnataka is not resting on its laurels as India’s premier innovation hub. The state is looking far beyond 2025, shaping a vision that aligns with global trends while addressing local opportunities. By 2035, Karnataka aspires to be among the top 10 global startup ecosystems, promoting innovations that fuel economic growth and address pressing societal challenges such as sustainability, digital inclusion, and climate resilience.

The roadmap ahead focuses on three core pillars: sustainability, inclusivity, and global leadership. The state plans to lead the way in green entrepreneurship, enabling startups to pioneer solutions in clean energy, waste management, and circular economies. Programs will prioritise deep-tech startups in AI, robotics, and MedTech, ensuring the state remains competitive in emerging technologies.

Decentralisation will also take center stage, with enhanced investments in developing Beyond Bengaluru clusters. This strategy will ensure that Tier-II and Tier-III cities like Mysuru, Hubballi-Dharwad, and Mangaluru emerge as new hubs of innovation, bridging the urban-rural divide and promoting grassroots entrepreneurship.

Also Read | Karnataka Leading India’s Innovation and Investment Landscape

By nurturing a future-ready workforce, strengthening startup-friendly policies, and creating sustainable infrastructure, the state is laying the foundation for innovation-driven, inclusive growth.

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