Karnataka to Finalise New IT Policy by July, Proposes ₹50 Cr Applied AI Centre and Focus on Tier-2 Expansion

Karnataka is set to unveil a revamped Information Technology (IT) policy by July, aimed at advancing emerging technologies and decentralising tech-driven growth across the state. A key feature of the upcoming policy is the proposed establishment of an Applied Artificial Intelligence (AI) Centre, backed by a ₹50 crore investment over the next five years.

In an interaction, State IT Minister Priyank M Kharge highlighted that the policy represents a deliberate shift from Bengaluru-centric development to fostering digital ecosystems in Tier 2 and Tier 3 cities.

“The IT policy will focus on creating new economic accelerators beyond Bengaluru. Infrastructure is a problem with any growing city, and that was quite naturally raised by stakeholders,” Kharge stated.

Targeted cities for this expansion include Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi, where the government aims to bolster digital infrastructure and innovation capacity.

Alongside the AI centre, the draft policy includes a ₹300 crore fund-of-funds to support startups, as well as a ₹100 crore fund specifically for deep-tech ventures. The policy has been shaped with the inputs of state IT secretary Ekroop Caur and industry body Nasscom. Nasscom has also recommended a deep-tech fund framework with investment ticket sizes ranging between ₹50 crore and ₹200 crore, aligning with international benchmarks.

The policy draft is currently undergoing review by the IT Vision Group ahead of the state’s annual CEO conclave. With a strategic emphasis on cutting-edge fields such as AI, blockchain, Internet of Things (IoT), and 5G, Karnataka aims to reinforce its leadership in the digital economy while making tech-driven progress more inclusive.

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