Karnataka Budget: Focus on innovation and technology beyond Silicon Valley

Chief Minister Siddaramaiah has proposed a capex of Rs 3.27 lakh crore in the budget, of which a significant chunk has been allocated for developing the state’s IT and startup ecosystems.

A 100 acre-Technology Innovation Park in Bengaluru’s Kadugodi has been proposed. The tech park will provide services in testing, design, innovation, research and development of semiconductors, besides housing a Technical Research Institute, the CM said in his budget speech.

The proposed semicon park has been welcomed by the Karnataka Digital Economy Mission (KDEM).

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"This will provide a massive boost to the Electronics System Design and Manufacturing (ESDM) sector in the state,” said Sanjeev Gupta, CEO, KDEM.

Health tech lab

The government has proposed a Karnataka Health Technology Laboratory to be established at a cost of Rs 8 crore. Additionally, the state wants to spend Rs 50 crore towards building a Centre of Excellence in Health-Tech and Med-Tech, for which Rs 10 crore has already been earmarked for this year. This will be aided through the introduction of a Bio-bank, which is a biomedical database and research resource, at the cost of Rs 5 crore.

Several centres of excellence have been proposed, including one for wireless and wired technologies under a public-private partnership model costing Rs 25 crore, of which 5 crore has been put aside for the current fiscal. A Rs 20 crore worth CoE in Design may also be built.

Startups get big boost

Multiple new projects have been proposed to accelerate growth in the startup focused state.

A “world-class” incubation centre called ‘INNOVERSE’ housing hi-tech facilities for startups, worth Rs 50 crore, has been proposed, of which Rs 10 crore will be spent this year. The government also intends to organise a program called ‘Propel’ costing Rs 5 crore, to “accelerate the adoption of solutions of start-ups which have been funded by the government” under the policy.

“The proposed incubation centre with world-class facilities and the ‘Propel’ program to accelerate the adoption of state-funded startups’ solutions are significant steps towards nurturing and empowering the startup ecosystem in Karnataka,” said TiE Bangalore’s president Madan Padaki.

State Research Foundation

Under the Karnataka Research Development and Innovation Policy, the government will constitute the Karnataka State Research Foundation (KSRF). “Research and innovation is an outcome of interaction between industries, universities, research institutions and governments,” the chief minister said while introducing e-KRDIP, an e-portal.

Trade associations have also hailed the government’s push towards catalysing the startup space. “For India to strengthen its position as the deep tech capital of the world, it will require constant support from the government and industry, access to funds, and progressive policies that strengthen ease of doing business,” said K S Viswanathan, VP of Industry Initiatives, Nasscom.