Karnataka announces ₹50,000 support to shift IT jobs beyond Bengaluru

The state unveils a sweeping 2025-30 IT vision with fiscal support, deeptech focus, and regional expansion plans at the Bengaluru Tech Summit.

Karnataka has outlined a major push to distribute its technology ecosystem more evenly across the state with the introduction of a new IT policy that offers companies a one-time relocation incentive of up to ₹50,000 for every employee shifted into tier-2 cities. The policy blueprint, cleared by the government, is aimed at encouraging firms to move talent from Bengaluru to Mysuru, Mangaluru, Hubballi-Dharwad, Kalaburagi and Shivamogga, as well as attract employees from outside Karnataka into these regions.

The initiative was presented at the 28th Bengaluru Tech Summit, where the government highlighted the need to strengthen emerging tech hubs instead of concentrating growth only in the capital. A total outlay of ₹445 crore has been set aside for incentives and interventions during the policy period. Through this approach, the state aims to build talent-driven investment corridors that reduce pressure on Bengaluru’s urban infrastructure while amplifying high-skilled opportunities across Karnataka.

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The IT Policy 2025-30 places a strong emphasis on deeptech, positioning the state as a preferred destination for advanced research and innovation. Karnataka remains India’s largest centre for R&D and product development, contributing 42% of the country’s IT exports, valued at over ₹3.2 lakh crore and growing rapidly at 27% year-on-year. With more than 550 global capability centres operating in the state and nearly 400 Fortune 500 companies present in Bengaluru alone, the new plan aims to extend this leadership to other cities.

Alongside the IT policy, the government also unveiled the Spacetech Policy 2025–2030. The objective is to establish Karnataka as the country’s leading spacetech hub with a target of capturing half of India’s domestic market and 5% of the global share by 2034.

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The upcoming Startup Policy 2025, set to be released next, will focus on enabling the launch of 25,000 startups in five years. It will support funding access, infrastructure creation, talent development and inclusive growth. The government reiterated that Karnataka’s rise as a technology powerhouse is the outcome of sustained public and private initiatives dating back to India’s first dedicated IT policy introduced in 1997. Bengaluru’s infrastructure improvement drive, backed by investments exceeding ₹1 lakh crore, remains central to the broader vision.