Karnataka Cabinet Approves Startup Policy With INR 518 Cr Allocation Till 2030

The Karnataka cabinet approved the Karnataka Startup Policy 2025-2030 yesterday, with an allocation of INR 518 Cr ($58.4 Mn). 

“With an outlay of INR 518.27 Cr, this policy will support the creation of 25,000 new startups, of which 10,000 will emerge from beyond Bengaluru, in cities like Mysuru, Mangaluru, Hubballi-Dharwad and Kalaburagi,” Karnataka’s minister of electronics, information technology & biotechnology, Priyank Kharge, said in a post on X.

Kharge added that the policy is focussed on building future-ready startups in sectors like AI, blockchain, quantum computing, semiconductor design and other deeptech domains.

Under the policy, the state government will offer strategic support to startups, including funding and grants, incubation and infrastructure support, mentoring and skill development, market access and expansion, international collaboration and regulatory facilitation

Karnataka is among the leading states in the country in terms of the number of startups, with Bengaluru being the startup capital of India. Bengaluru-based startups raised a total funding of $544 Mn in Q3 2025 across 76 deals. 

The latest development comes days after the Karnataka government announced INR 600 Cr investment plan to support deeptech startups across the state. 

Prior to that, Karnataka also launched INR 1,000 Cr ‘Quantum Mission’ to create 10,000 high-skilled jobs and establish the state as the ‘Quantum Capital of Asia’.

This comes at a time when states are competing with each other to support startups, boost their economies, and create new jobs. Last month, the Tamil Nadu government said it would set up INR 100 Cr Co-Creation Fund. The fund of funds (FoF) will be managed by StartupTN, the state government’s flagship startup mission. 

Meanwhile, the Delhi government also released its draft ‘Delhi Startup Policy, 2025’ in August, and proposed floating INR 200 Cr VC fund under it.