BTS 2025: Karnataka Shifts Gears From IT Services To Deeptech

It was an action-packed second day at the Bengaluru Tech Summit 2025. Karnataka, which built India’s software economy, used the event to outline its plan for the next decade, a shift from services-led economy to a deeper research ecosystem built around semiconductors, electronics manufacturing and large-scale skill development.

Here is a breakdown of all key announcements on the sidelines of the BTS 2025 so far, what they mean, and the structural bets the state is placing.

Karnataka Secures INR 2,600 Cr Commitments

Karnataka secured investment commitments to the tune of INR 2,600 Cr on day two of the Bengaluru Tech Summit 2025. The potential investments are expected to create around 3,500 direct and indirect jobs in the state. 

The letters of intent (LoIs) were signed across semiconductor manufacturing, EV battery technologies and biotech.

The companies that submitted LoIs include the Drone Federation of India, Global HDI, Tsuyo Manufacturing and MiniMines Cleantech Solutions. EyeStem Research and Elleve Solutions have also outlined investment plans.

Global HDI also committed to invest INR 1,500 Cr in Karnataka as part of its electronics expansion plans. Chiming in, Wipro Electronics also announced INR 500 Cr commitment for a printed circuit board (PCB) plant in Doddaballapura that will be constructed in six months and start production within nine. 

Meanwhile, Elleve Solutions plans to set up a INR 250 Cr electronics manufacturing unit.

In a separate development, the Electronics Sector Skills Council of India (ESSCI) and the Karnataka government signed an MoU with Marvell Semiconductor. Under this programme, Marvell will train 90 women in semiconductor design and embedded systems. The training will be fully funded by the company and conducted in tier II and tier III cities across the state.

The Quantum Era

On the sidelines of the BTS 2025, Karnataka science and technology minister NS Boseraju on Wednesday also unveiled the concept of India’s first Quantum City, which will be built on the outskirts of Bengaluru in Hesaraghatta.

The City will house advanced research laboratories, a quantum hardware park, cryogenic testing facilities, quantum cloud clusters, and a deeptech startup zone, said the minister. The state government said that the premises will offer end-to-end plug-and-play services, from research and incubation to commercialisation for quantum technologies.

Moving Beyond Bengaluru

The Karnataka government also used the Bengaluru Tech Summit 2025 to signal that the state wants the next phase of its IT growth to take place outside the capital Bengaluru. 

Hinting at new incentives and large infrastructure plans, deputy chief minister DK Shivakumar said the government will continue improving Bengaluru’s urban systems, but the long-term goal will be to reduce the city’s concentration of IT activity and build parallel hubs across the state.

Just yesterday, the state government announced its draft IT Policy 2025–30, which proposes a relocation incentive of INR 50,000 per employee for companies that move teams or set up new units in tier II and tier III cities. 

The government has said this incentive is not a subsidy but a practical response to the rising operational pressure inside Bengaluru, where expansion has become expensive and difficult to sustain. 

At the summit, Shivakumar also announced plans for an international business complex in Bengaluru and a 9,000-acre AI City in Bidadi. While these projects sit around the capital, he said they are meant to serve as anchors while the state builds new IT corridors beyond the city. 

He also linked this push to the fact that Bengaluru is already handling more than INR 1 Lakh Cr of ongoing infrastructure work. Shivakumar said these upgrades are essential to stabilise the city but added that the state cannot rely on Bengaluru alone to absorb future tech growth.

The deputy CM also noted that Karnataka will create a separate NRI secretariat and develop dedicated residential layouts for global professionals, but he emphasised that the broader strategy is to distribute IT jobs more evenly. 

Making Computing Affordable

Earlier yesterday, the state government also announced the launch of KEO, a compact, affordable and AI-ready personal computer developed entirely in the state, at the BTS 2025.

Developed by the state IT department and KEONICS (Karnataka State Electronics Development Corporation Limited), KEO (knowledge-driven, economical and open-source), the PC is powered by an open-source RISC-V processor. It runs on a Linux-based operating system, includes 4G and Wi-Fi, and comes preloaded with learning, coding and productivity tools.

Priced at INR 18,999, the personal computer also features an on-device AI core that allows artificial intelligence to run locally without internet access. 

Karnataka Bets On SpaceTech

The state government also approved another major policy for the next phase of Karnataka’s technology growth, using the Bengaluru Tech Summit to expand its ambitions in space technology and startups.

Chief minister Siddaramaiah said the new SpaceTech Policy sets out a plan to capture half of India’s space market and 5% of the global market by 2034. The government expects the Indian space economy to reach $44 Bn in the next decade and believes Karnataka can anchor the software, data and systems side of the industry. 

The policy lays out plans for dedicated space-manufacturing parks, advanced testing infrastructure and a centre of excellence (CoE) for space technology. The state will also train 50,000 students and professionals for high-skill space jobs and is targeting $3 Bn in global and domestic investment.

Officials said Karnataka’s strength lies in its deep talent base and its existing vendor network around ISRO. The state houses more than 2,500 MSMEs supplying components to space missions, 32 spacetech startups and dozens of defence tech companies. 

Alongside this, earlier this week, the state cleared the Startup Policy 2025–2030 with an aim to create up to 25,000 startups, including 10,000 outside Bengaluru, over the next five years. The government has approved an outlay of INR 518.27 Cr to fund early-stage ventures, support incubators, expand R&D hubs and offer specialised training and certification support.

The theme of the 28th edition of Bengaluru Tech Summit 2025 is ‘Futurise’. The event brings together global leaders, policymakers, investors and startups to explore emerging frontiers in deeptech, and health tech, semiconductors, and innovation.