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Govt to build AI hub in Bidali: DKS
Karnataka plans a tech ecosystem expansion with over ₹1 trillion investment, including a new IT city in Bidadi and incentives for startups relocating outside Bengaluru.
Karnataka is preparing an expansion of its technology ecosystem, with investments exceeding ₹1 trillion to upgrade Bengaluru’s infrastructure and the state government planning a new IT and AI focused city in Bidadi, deputy chief minister DK Shivakumar said on Monday, while speaking on the first day of the 28th edition of the Bengaluru Tech Summit 2025.
“We are developing residential layouts for NRIs, a world class city near Bidadi on 9,000 acres. We are building an international complex to house all international business houses,” he said.
Shivakumar said the strength of Bengaluru lies in its people, pointing to what he described as the city’s unmatched talent base. “There are about 25 lakh IT experts in Bengaluru and no other place on earth has this kind of talent pool,” the deputy chief minister said. The state, he added, is also drawing up proposals for a second airport and plans to establish a dedicated NRI Secretariat.
Shivakumar said the government’s renewed focus on technology is closely linked to Karnataka’s efforts to secure international partnerships.
Leaders from many countries have signalled interest in investing billions of dollars in the state, he said, adding that global participation in this year’s summit reflects that confidence.
The event is expected to bring in representatives from sixty countries and nearly fifty thousand participants, along with one thousand five hundred major companies.
“Leaders from several countries keep meeting me. They are all excited about investing in Bengaluru and we are supporting their investments in every way possible. Representatives from 60 countries are participating in Bengaluru Tech Summit 2025,” he said earlier in the day.
He added that Karnataka’s capacity for innovation is central to its economic direction. “The local talent, innovation, technology and startups will take Karnataka in a new direction if encouraged properly. I always call upon the youth to compete at a global level. We will always support those who come to Karnataka seeking opportunities.”
He praised the work of IT Minister Priyank Kharge and KIONICS in charge Sharath Bachegowda for strengthening the state’s digital environment, noting that Bengaluru’s “atmosphere is conducive to everything.”
He also said that feedback, including criticism and praise for road improvement work, was part of public service. “We have done our job. Criticism is welcome, praise is welcome. Serving the people is the first priority,” he said.
The push for the Bidadi AI City comes as Karnataka broadens its strategy to distribute technological growth beyond the capital.
A LinkedIn post by Gurgaon based CFO Sarthak Ahuja highlighted the scale of incentives under the Karnataka IT Policy for 2025 to 2030, describing it as an unusually generous offer for start-ups willing to shift to tier two cities.
“The Govt is paying you to move out of Bangalore,” he wrote.
According to Ahuja’s account of the policy, start-ups relocating or expanding beyond Bengaluru can access 50% rent reimbursement up to ₹2 crore, 30% reimbursement of property tax for three years, complete electricity duty waiver for five years, and 25% reduction in telephone and internet bills up to ₹25 lakh. The policy also supports research and development through a 40% reimbursement up to ₹50 crore and offers additional incentives for work in artificial intelligence, quantum computing, blockchain and related fields.
Ahuja said the government has set aside roughly ₹960 crore over five years for these incentives, which will be available to a limited number of recipients in each category. Applications are expected to open once detailed guidelines are released in December.
Start-ups must operate in designated tier-two and tier-three locations including Mysuru, Mangaluru, Hubballi Dharwad, Belagavi, and others to qualify. The effort is part of the “Beyond Bengaluru” plan to reduce pressure on the city and spread development across Karnataka.
