Karnataka Proposes Deeptech Innovation Cluster In Bengaluru

Karnataka Government unveils two flagship programs

SUMMARY

Kharge highlighted Karnataka’s thriving deeptech ecosystem, with over 250 startups that attracted more than $1.5 Bn in investment during 2023

With the 2025 Karnataka state budget slated to be announced in March next year, Kharge has sought the ecosystem’s help to come up with a framework next month

This move will address the gaps in core deeptech areas in the country, such as artificial intelligence and machine learning, robotics and automation, quantum computing, and biotechnology

Karnataka’s IT minister Priyank Kharge has reportedly suggested a deeptech innovation cluster in Bengaluru to help grow and scale up startups in this sector.

“The Karnataka Digital Economy Mission and NASSCOM should collaborate and establish a deeptech innovation cluster in Bengaluru,” said Kharge at NASSCOM’s Future Forge 2024 event held on Wednesday.

He also urged the two bodies to find the right institutional partners and think tanks to formulate a framework by the Bengaluru Tech Summit, scheduled from November 19-21, 2024, as per ET’s report.

Kharge highlighted Karnataka’s thriving deeptech ecosystem, with over 250 startups that attracted more than $1.5 Bn in investment during 2023, creating close to 10,000 jobs. However, he did not elaborate on what the innovation cluster would entail. The minister claimed the state government has developed plug-and-play facilities to address learning gaps in the deeptech ecosystem, and is working with the industry to figure out the way forward for deeptech regulations.

With the 2025 Karnataka state budget slated to be announced in March next year, Kharge has sought the ecosystem’s help to come up with a framework next month. He added that the deeptech innovation will figure among the key priority areas in the budget.

This move will address the gaps in core deeptech areas in the country, such as artificial intelligence and machine learning, robotics and automation, quantum computing, and biotechnology.

In June this year, Kharge said the state expects to attract investment of $6.2 Bn in technology sectors such as biotechnology, AI, semiconductors, AVGC (animation, visual effects, gaming, and comics), and healthtech from the US and Europe.

The IT/BT ministry is also said to be working on preparing a ‘Startup Directory’, which will record details of the startups in Karnataka, their profiles and turnover. Besides, the state government also claims to be working on an online startup platform to connect with VCs.

Last year, deeptech startups raised $496 Mn compared to $397 Mn in 2022, as per Inc42’s “Indian Tech Startup Funding Report 2023”.

Overall, between 2014 and 2023, homegrown deeptech startups raised over $1.5 Bn in funding across 343+ deals.