Karnataka targets expats in new IT policy amid global layoffs, aims to create 90 lakh jobs

Bengaluru: Karnataka will launch a programme for Indian tech expats returning home, which is among several initiatives under the new Information Technology (IT) Policy that aims to increase the state’s software exports to Rs 11.5 lakh crore by 2030.

Under the IT Policy 2025-30, approved by the Cabinet on Thursday, the government wants to achieve generation of over 90 lakh direct and indirect jobs. It also aims to increase the IT sector’s contribution to gross state value added (GSVA) from 26% to 36%.

The policy offers an 'IT Talent Return Programme' to support mid-career professionals overseas, which comes amid global layoffs and uncertainty looming over US work visas.

Speaking to DH, IT/BT Minister Priyank Kharge said the programme was not conceived because of layoffs or the H1B visa confusion. "Many people want to come back and work. Also, there's a lot of traction because of the presence of global capability centres (GCC)," he said.

Under the policy, the government will launch a digital portal homecoming professionals with Karnataka-based companies seeking expertise in leadership, R&D and mentoring roles "tap into India’s large diaspora".

Through the policy, the government wants to “drive significant IT investments with special focus on AI and other new technologies” in Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Tumakuru, Kalaburagi and Shivamogga as part of the ‘Beyond Bengaluru’ push.

New incentives

The policy offers ‘recruitment assistance’ to IT/ITeS companies operating outside Bengaluru. Companies recruiting 100 or more employees will get assistance worth Rs 35 lakh to Rs 7 crore.

Companies will also get up to Rs 50,000 per employee as ‘talent relocation reimbursement’. This will apply to employees from Bengaluru or another state moving to a ‘Beyond Bengaluru’ location. Further, companies will get up to Rs 10 lakh per cohort towards costs incurred in training faculty members at academic institutions.

Power tariff concessions, reimbursement of electricity duty and property tax, sops for new and existing IT parks are among other incentives.

In all, the state government will spend Rs 967.12 crore under the new policy.

Retain leadership

The policy wants Karnataka to “retain leadership in the IT sector through pioneering AI capabilities” and “fostering the development of other emerging technologies”.

Karnataka currently has over 5,500 IT/ITeS companies, including some 750 multinational corporations, generating 12 lakh direct and 31 lakh indirect jobs.

The policy identifies Karnataka as India’s largest software exporting state, accounting for 43.67% of the total. At present, the state’s IT exports are at Rs 4.09 lakh crore.