In a big transfer to bolster Karnataka’s picture because the tech capital, the state authorities, on Friday, introduced the Finances 2025-26, allocating a big quantity for AI initiatives.
The state allotted ₹300 crore for a Fund-of-Funds and a corpus fund of ₹100 crore for deep tech improvement, whereas additionally setting apart ₹50 crore over 5 years for the Centre for Utilized AI for Tech Options (CATS).
The federal government pushed the startup ecosystem to broaden additional in cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalburgi, with 10,000 job creations.
Presenting the estimated ₹4,09,549 crore price range, Karnataka Chief Minister Siddaramaiah introduced improvement initiatives, positioning the state as a frontrunner in technological innovation.
Moreover, beneath the ‘Model Bengaluru’ idea (to enhance infrastructure, service supply, and site visitors administration), ₹1,800 crore was allotted for 21 schemes throughout the monetary yr 2025-26.
AI in Governance and Training
The Karnataka AI cell is growing AI-based options utilizing applied sciences like pc imaginative and prescient and Pure Language Processing (NLP) and LLMs to boost governance.
“An AI-based Authorities Order Abstract and Data Extraction Instrument will facilitate quick access to authorities info for officers and residents, the CM stated. Moreover, the AI-driven IPGRS 2.0 was introduced to enhance public grievance decision, putting Karnataka forward within the digital administration sport.
Specializing in the schooling sector, the federal government initiated the Kalika Deepa Programme in collaboration with Ek-Step Basis, extending AI-based studying instruments to 2,000 colleges. The purpose is to boost college students’ English and Kannada language expertise and mathematical competencies.
Karnataka additionally launched a complicated attendance administration system in all authorities departments utilizing the most recent applied sciences, resembling AI and Geographic Data System (GIS). As well as, a ₹2 crore good system is to be carried out utilizing AI to supply transcriptions of court docket proceedings, translations of judicial paperwork, and different info.
As a part of the ₹667 crore Bengaluru Protected Metropolis challenge, cameras have been put in throughout Bengaluru, out of which 10 drones have been carried out.
To observe and management vehicular site visitors, AI-enabled digital cameras will probably be put in at 60 locations in Davanagere, Dharwad, Kalaburagi, Belagavi, Chitradurga, Haveri, Hospet, Bellari, Vijayapura, and Dakshina Kannada districts at the price of ₹50 crore.
GCCs, IT and New Tech Get a Financial Increase
Aiming to stimulate innovation and entrepreneurship in cities apart from Bengaluru, a Native Financial system Accelerator Program (LEAP) will probably be launched within the present yr with a grant of Rs. 1,000 crore.
The state’s IT coverage targets investments of $300 billion and job creation of 1.5 lakh, emphasising cloud computing and rising applied sciences.
Karnataka will develop World Innovation Districts in Mysuru, Belagavi, Dharwad, and Bengaluru to strengthen its management in GCCs as properly. The GCC Coverage 2020-25 additionally goals for an funding of ₹5,000 crore, with an ambition of making 3.5 lakh jobs.
Moreover, Karnataka State Electronics Improvement Company Restricted (KEONICS) will set up three new World Know-how Centres in Mangaluru, Hubli, and Belagavi as plug-and-play services.
The price range announcement additionally included Quantum Analysis Park Part-2, to be arrange with a grant of ₹48 crore over three years in collaboration with the Indian Institute of Science, Bengaluru.
Semiconductors and Electronics
The price range introduced the constructing of a state-of-the-art PCB Park will probably be developed in Mysuru on 150 acres, making a devoted ecosystem for electronics manufacturing, with an addition of ₹99 crore SensorTech Innovation Hub to encourage sensor analysis and improvement.
Within the broader context, Karnataka’s semiconductor ambitions are gaining momentum, with firms like Microsoft, Intel, Accenture, and IBM committing vital investments.
The state’s Industrial Coverage 2025-30, unveiled at Make investments Karnataka 2025, goals to create 2 million jobs and entice substantial investments in sectors like semiconductors and renewable power. The Union price range for 2025–26 additionally helps these efforts with an elevated allocation for semiconductors and electronics manufacturing.
To encourage digital automobile (EV) manufacturing and utilization, a testing monitor of worldwide requirements and a state-of-the-art EV cluster with widespread infrastructure will probably be established round Bengaluru at a value of ₹25 crore.
The Karnataka Biotechnology Coverage additionally goals to draw ₹1,500 crore investments by way of incentives, whereas the information centre coverage goals for an funding of ₹10,000 crore with a complete capability of 200MW.
Moreover, Karnataka’s AVGC-XR Coverage 2024-29 additionally sees an funding of ₹150 crore with 30,000 jobs to be created.
The state signed MoUs totalling ₹10.27 lakh crore on the World Buyers’ Meet 2025, held in February this yr, anticipating to create over 600,000 job alternatives. The federal government envisions positioning itself as a hub for Synthetic Intelligence (AI), AI-driven governance, schooling, digital manufacturing, deep tech, World Functionality Centres (GCCs), biotechnology, and IT.
The publish Okay’taka Finances 2025-26: ₹1,000 crore Accelerator Fund, Quantum Park and EV Cluster appeared first on Analytics India Journal.
