Karnataka Budget | Government announces launch of Rs 1K-crore startup LEAP to create employment

The Karnataka Budget announced the launch of a Local Economy Accelerator Program (LEAP). This is aimed at creating employment opportunities for 5 lakh professionals along with development of a startup ecosystem in hubs beyond Bengaluru, like Mysuru, Hubballi-Dharwad and Kalaburagi.

Karnataka plans to spend Rs 1,000 crore on the initiative, out of which an allocation of Rs 200 crore has been made for 2025-26.

The budget also announced a new IT policy to streamline focus on cloud computing and development of emerging technologies and expansion to tier-2 and tier-3 cities. Additionally, a Rs 300 crore for fund of funds and a corpus of Rs 100 crore for deep tech development will be earmarked.

Further, a Centre for Applied AI for Tech Solutions (CATS) will also be established with an investment of Rs 50 crore over the next five years to promote the development of quantum technology and a Quantum Research Park Phase-2 will be set up with a grant of Rs 48 crore over the next three years in collaboration with the Indian Institute of Science, Bengaluru.

Apart from this, the state’s electronics department KEONICS announced the establishment of three new Global Technology Centres (GTCs) as plug and play facilities in Mangaluru, Hubballi and Belagavi. A dedicated ecosystem was also announced through creation of a state-of-the-art Printed-Circuit Board (PCB) in Mysuru on 150 acres of land.

An agri-tech accelerator will also be established in Kalaburagi for technology integration in the agriculture sector and even a flat factory. The government through Karnataka Biotechnology Policy 2024-2029 is looking to attract investment of Rs 1,500 crore in the medium, small and micro enterprises (MSMEs) and large-scale industries.

This will be implemented through an incentive of Rs 220 crore. Chief Minister Siddaramaiah also said that the state will provide assistance of Rs 57 crore for the reconstruction of the Bengaluru Bio-Innovation Center, which was severely damaged in a fire disaster.