Karnataka approves new IT policy, to create new job opportunities


Karnataka has revealed a new IT policy for the year 2020-25. The policy aims to generate more than 60 lakhs of direct and indirect jobs in the sector. The Karnataka government said that it wants to retain its leadership position through strategic policy interventions.


On Thursday, The cabinet approved the proposed IT policy.


New IT policy goals

Deputy Chief Minister CN Ashwath Narayan, the state’s IT/BT minister, said that through the policy, Karnataka wants to contribute at least 30 percent to India’s goal of becoming a trillion-dollar digital economy.

The policy also aims to shift the focus beyond Bengaluru. According to the police, the Karnataka Government wants to enable a remote and distributed labor force required for the IT beyond Bengaluru.

The minister said A-State Cyber Security Policy will also be formulated, as a part of the new IT policy, that will ensure the necessary data protection safeguards and will help to build a safe and flexible ecosystem.

The IT sector in Karnataka is one of the biggest employment generating sectors in India. It has almost 80 percent of IT firms that have Indian operations and R&D centers based out of state.

The new policy replaced the old IT policy that was formulated for the period of 2014-19. The first IT policy was approved in the year 1997.

The new policy promises to develop infrastructure and to provide encouragement to local companies and investments and develop growth, especially beyond Bengaluru.


The policy also focuses on the development of the market for IT and ITeS companies, by easing public procurement norms and hosting events.

Other strategies proposed under the policy are Ecosystem engagement, skill development, and ease of doing business.

Previous Policy achievements

A previous policy that expired last year, managed to set up industry partnership with K-Tech Innovation Hubs in 24 districts. Karnataka Unit for International Co-operation (KUIC) setted up and almost 500 companies registered to get various incentives, 21 projects worth Rs 6,728 crore generating 1.73 lakh jobs got approved.

ESDM scheme

Along with the new IT policy, The cabinet also approved a new special incentive scheme for the Electronics System Design & Manufacturing (ESDM) sector, which will aim to get Rs. 5000 crores investments and direct 43,000 jobs by the year 2025.

The government will give subsidy up to 25 percent for the land prices (up to 50 acres) for investments in ESDM outside Bengaluru Urban and Bengaluru Rural districts. Also, a similar subsidy will be given up to 20 percent on the plant and machinery costs.

Other things include:

  • 100 percent compensation on stamp duty, registration, and land conversion charges
  • Subsidy for power traffic up to Rs 1 per unit for five years
  • 1 percent of annual turnover for five years as a production-linked incentive among others.


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