Karnataka’s IT Policy 2025–30 targets ₹11.5L cr exports, 90L jobs, and tech expat return with ₹967 cr incentives beyond Bengaluru
The Karnataka government has rolled out its ambitious IT Policy 2025–30, aiming to generate over 90 lakh direct and indirect jobs while boosting software exports to ₹11.5 lakh crore by 2030. The policy, recently approved by the state Cabinet, is designed to strengthen Karnataka’s leadership in the IT sector and expand its footprint beyond Bengaluru.
A key feature of the policy is the introduction of an ‘IT Talent Return Programme’ to attract mid-career Indian tech professionals currently working overseas. This initiative comes amid global layoffs and visa uncertainties, and seeks to tap into the expertise of returning professionals. A dedicated digital portal will be launched to connect these individuals with Karnataka-based companies seeking leadership, research, and mentoring talent.
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The policy also emphasizes regional development by promoting IT investments in tier-2 and tier-3 cities such as Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Tumakuru, Kalaburagi, and Shivamogga. To incentivize companies to set up operations in these areas, the government will offer recruitment assistance ranging from ₹35 lakh to ₹7 crore for firms hiring 100 or more employees. Additionally, a relocation reimbursement of up to ₹50,000 per employee will be provided for talent moving from Bengaluru or other states.
Further support includes up to ₹10 lakh per cohort for training faculty at academic institutions, along with concessions on power tariffs, electricity duty, and property tax. Assistance will also be extended to both new and existing IT parks.
With a current base of over 5,500 IT/ITeS companies — including 750 multinational firms — Karnataka contributes 43.67% to India’s software exports, valued at ₹4.09 lakh crore. The new policy, backed by a ₹967.12 crore government outlay, aims to elevate the sector’s contribution to the state’s GSVA from 26% to 36% by 2030.
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