Policy | 6/9/2025
Karnataka Allocates ₹50 Crore for New AI Centre to Drive Tech Innovation
The Karnataka state government has announced a ₹50 crore investment over five years to establish the Centre for Applied AI for Tech Solutions. This initiative is part of the state's new IT policy aimed at fostering innovation, attracting investments, and expanding tech jobs beyond Bengaluru. The policy also includes a ₹300 crore Fund-of-Funds for startups and a ₹100 crore corpus for deep tech development.
Karnataka's Strategic Investment in AI
The Karnataka state government is making a significant move to strengthen its position as a leading technology hub by investing ₹50 crore over the next five years in a new Centre for Applied AI for Tech Solutions (CATS). This initiative is a cornerstone of the state's forthcoming IT policy, which will replace the current 2020-2025 framework. The policy aims to drive innovation, attract investments, and create jobs, particularly in emerging technologies like artificial intelligence (AI) and cloud computing.
Expanding Beyond Bengaluru
A key element of the new IT policy is the expansion of the IT sector beyond Bengaluru to tier-2 and tier-3 cities. This decentralization effort is part of the 'Beyond Bengaluru' initiative, which seeks to create 10,000 new startups in smaller towns and cities. The Local Economy Accelerator Programme (LEAP), with a ₹1,000 crore grant, aims to support this decentralization and generate significant employment opportunities across the state.
Focus on Applied AI
The proposed Centre for Applied AI for Tech Solutions is expected to be a pivotal institution for advancing AI and its applications across various sectors. While specific operational details are still emerging, the centre is aligned with Karnataka's strategy to build a robust ecosystem for AI research and development. The emphasis on "applied" AI suggests a focus on translating research into practical solutions for industries such as agriculture, healthcare, transportation, education, and e-governance.
Comprehensive Support for Tech Growth
In addition to the ₹50 crore investment in CATS, the policy includes a ₹300 crore Fund-of-Funds to support startups and a ₹100 crore corpus for deep tech development. This multi-faceted approach is designed to nurture the tech landscape, stimulate innovation, and attract further investment into Karnataka's AI sector from both domestic and international players.
Collaborative Efforts and Future Prospects
Consultations with industry bodies like Nasscom have been integral to shaping the new IT policy, which focuses on reskilling the digital workforce, extending IT infrastructure, and implementing regulatory reforms. The state's initiatives, such as the Global Capability Center (GCC) Policy 2024-2029, aim to attract 500 new GCCs and create 3.5 lakh jobs by 2029, further complementing the new AI centre.
Karnataka's commitment to AI is not new, but this focused investment and policy revision mark a significant step in its ambition to lead India's AI revolution. By fostering a skilled workforce and promoting IT sector growth beyond its traditional strongholds, Karnataka aims to solidify its position as a national technology leader and a prominent player on the global AI stage.