The Karnataka government has launched a new IT policy to incentivise companies to move beyond Bengaluru to other cities in the state.
As part of the policy, the state is offering a one-time relocation offer of up to ₹50,000 per employee hired by a company. This policy applies to companies moving from Bengaluru to Mysuru, Mangaluru, Hubballi-Dharwad, Kalaburagi, and Shivamogga. It will also apply to companies that bring talent from outside these states into these states.
“We need policies where talent doesn’t chase investment; instead, investment should be drawn to where the talent is,” Karnataka IT minister Priyank Kharge said at the inauguration of the 28th edition of Bengaluru Tech Summit (BTS). The state government has earmarked ₹445 crore for interventions and fiscal incentives during this policy period.
Karnataka’s IT Policy 2025-30 was unveiled during BTS and is positioning the state as a deeptech innovation destination. With Karnataka accounting for 42% of India’s IT exports, valued at over ₹3.2 lakh crore and growing at a rapid 27% year on year, the state is India’s largest R&D and product development hub.
As per Karnataka’s Chief Minister Siddaramaiah, the state is home to over 550 Global Capability Centres (GCCs), accounting for over a third of India’s GCCs. Moreover, over 400 Fortune 500 companies are operating out of Bengaluru. At BTS, the CM also announced the Spacetech Policy 2025–2030, with the aim of positioning Karnataka as India’s leading spacetechnology hub by hopefully capturing 50% of the national market and 5% of the global market by 2034.
The Startup Policy 2025 is also scheduled to launch on November 20, 2025. This policy aims to create 25,000 startups over the next five years through interventions in funding, market access, infrastructure, talent development, and social inclusion. Karnataka’s Deputy CM DK Shivakumar said that the state’s rise as an IT powerhouse was neither an accident nor a coincidence.
“Initiatives from the government and private sector have made Karnataka what it is today. Karnataka was the first state to formulate an IT policy in 1997,” Shivakumar stated, adding that the government plans on spending over ₹1 lakh crore on Bengaluru’s infrastructure.
