Policy in next 100 days to incentivize industries willing to go beyond Bengaluru, says Karnataka Chief Minister

Chief Minister DK Shivakumar with members of the business community at the annual CEOs breakfast meeting ahead of the Bengaluru Tech Summit 2026 in Bengaluru on Friday. | Photo credit: special arrangement

Chief Minister DK Shivakumar on Friday said that in the next 100 days, the government will introduce a policy to encourage industries to set up operations outside Bengaluru by offering world-class office infrastructure at very affordable costs, including office space in other Karnataka cities at as low as 50 cents per square foot. He was speaking at a meeting of the CEO community in the city.

Recalling his interactions with global leaders at the World Economic Forum in Davos earlier this year, Mr. Shivakumar said companies prefer Bengaluru because of its talent, ecosystem and cost advantages. “Many states are competing, but companies are telling us that if it costs $3.50 elsewhere, they can achieve the same here for almost $1 because of Bengaluru’s ecosystem and talent advantage.”

AI University

He urged industry leaders to join hands with the Karnataka government in shaping the next phase of the state’s growth. He also sought industry support and involvement in expanding world-class infrastructure beyond Bengaluru to set up an AI university with industry participation and also launch new policies to strengthen the technology ecosystem.

Addressing CEOs in the city on Friday, Mr. Shivakumar said the state’s software exports have already crossed ₹ 4.36 crore and are expected to cross ₹ 5.5 crore in the current financial year. “Behind every number is a young engineer getting their first job, a developer solving problems, and a family getting closer to their dreams.”

Speaking about the state’s plans to build an AI university in partnership with industry, he said he had discussed the initiative in detail with Google. He said the university will serve as a hub for learning, innovation, collaboration and public digital access with a vision to introduce AI education to rural students from Class 6 onwards.

Urging companies to adopt every single government school as part of their corporate social responsibility (CSR) programmes, he said, “We spend more than ₹1 lakh per child on government education. Yet we still have vacancies for teachers. The government alone cannot do everything. We need your partnership.”

Innovators Foundation

Later in a media conference, IT and BT Minister Priyank Kharge said the government has announced the creation of the Innovators Foundation, an initiative aimed at positioning Karnataka as a global leader in deep technology.

“Through the foundation, we will support deep-tech startups, help them access global markets and explore ways in which the government itself can adopt and leverage their innovations. It will operate under a Public-Private Partnership (PPP) model, which is another first-of-its-kind initiative in the country,” said Mr. Kharge.

He further said that to boost the growth of the state’s start-up ecosystem, the government has launched Elevate Next, a deep-tech company that comes with a grant of ₹1 crore, which is double what was provided under the Elevate programme. In January alone, this program received 983 applications from various start-ups, which indicates a positive response. “Today, for the first time in India, we selected 33 promising deep-tech startups and distributed ₹33 crore in grants under Elevate Next. What is particularly encouraging is that 12 of the 33 startups are led by women. Out of these 33 startups, 24 are from Bengaluru, one each from Udupis, Biliskote city of Karnataka – Delhi, Maharashtra and Telangana,” the minister said.

According to Mr. Kharge, the Indian Venture Capital Association will form a dedicated deep technology task force. A Deep Tech Working Group/Vision Group led by industry representatives would also be set up with the approval of the Chief Minister.

At the top

Mahadesha V, Director, Software Technology Parks of India (Bangalore), said Karnataka remained the undisputed leader in the technology business with 43.5% of the nation’s IT exports and an 18% growth rate, compared to the national average of 8% to 9%.

Published – 25 Jul 2026 0:35 AM IST