In a decisive move to foster local innovation, the Karnataka government has amended its state startup policy to establish a “govt-first” approach. Rather than requiring startups to wait for private sector validation, the state is opening its doors for young enterprises to pitch technology and products valued up to Rs 25 lakh directly to government departments to solve administrative and social challenges.
To ensure quality and prevent misuse, strict vetting guardrails have been put in place. Elaborating on the framework, IT-BT and Home Minister Priyank Kharge noted:
“The startups will have to come via govt-sponsored schemes such as Elevate or have credible funding track records.”
Sweeping Industrial Policies Approved
During the cabinet meeting, the state administration also greenlit two major sector-specific policies aimed at boosting manufacturing, regional employment, and capital inflow:
- Aerospace Policy (2026–2031): Targeting Rs 60,000 crore in investments and the creation of at least 50,000 jobs over five years, the policy introduces subsidies of up to 30% for focus zones and up to 25% for non-focus areas. Officials highlighted upcoming ventures, such as Tata Systems collaborating with Hindustan Aeronautics Limited (HAL) on Light Combat Aircraft (LCA) production, as key drivers.
- Textile and Readymade Garments Policy (2026–2031): Spanning 33 identified taluks, the government plans to invest up to Rs 4,000 crore over the next five years to attract Rs 20,000 crore in sector investments. The package includes credit-linked incentives and power subsidies of up to Rs 2 per unit to bolster regional textile manufacturing and employment.
