Karnataka is setting its sights on becoming the leading space technology hub in India, with Chief Minister Siddaramaiah announcing the ambitious goal of capturing 50% of the nation's spacetech market by 2034. This translates to approximately 5% of the global market share in the sector. The announcement was made at the Bengaluru Tech Summit (BTS) 2025, a three-day event themed "Futurise".
The state government is launching the SpaceTech Policy 2025-2030 to achieve this objective. The policy aims to position Karnataka as the epicenter of India's space ambitions, fostering innovation, manufacturing, and research within the state.
Karnataka's strategy involves several key initiatives. A primary focus is on capacity building through training programs for both students and professionals, with a particular emphasis on encouraging women's participation in the sector. The government intends to attract substantial investments into the state's space ecosystem, aiming for approximately $3 billion. Incentives will be offered to domestic and international companies, MSMEs, startups, private equity firms, and venture capital firms to invest in Karnataka-based space ventures. The government also plans to develop world-class infrastructure and establish a center of excellence for space technology to drive research and innovation.
The SpaceTech Policy will be delivered through 35 initiatives across five pillars: skill development, investment incentives, infrastructure development, innovation and facilitation, and adoption and awareness.
Karnataka already boasts a strong foundation in the technology sector. The state is home to over 16,000 startups, accounting for nearly 47% of India's total startup funding. It is also the largest R&D and product development hub in India. Karnataka contributes 42% of India's IT exports, valued at over Rs 3.2 lakh crore, with a year-on-year growth of 27%. Furthermore, the state hosts more than 550 global capability centers (GCCs), nearly a third of India's total, and over 400 of the Fortune 500 companies have operations in Bengaluru.
In conjunction with the SpaceTech Policy, Chief Minister Siddaramaiah also unveiled the Information Technology Policy and the Startup Policy 2025-2030. The new Startup Policy aims to create 25,000 startups over the next five years through strategic interventions in funding, market access, infrastructure, talent development, and social inclusion.
The Bengaluru Tech Summit 2025 is expected to host over 80 knowledge sessions and more than 5,000 curated meetings, with participants from across India and 60 other countries. The summit includes discussions on IT and deep tech, electronics and semiconductors, digital health, biotech, the India-USA Tech Conclave, and the Global Collaboration and Startup Ecosystem. Sub-tracks feature conversations on artificial intelligence, defense, space tech, 'Finverse', and women in leadership.
At the summit, Karnataka also launched KEO (Knowledge-driven, Economical, Open-source), an affordable AI-ready computer developed by the Karnataka State Electronics Development Corporation Ltd (KEONICS). KEO's AI core runs AI applications locally, instead of relying on cloud services and is part of a broader push for accessible, locally adaptable, home-grown computing.
Karnataka's focus on the space technology sector aligns with projections that India's space economy could reach $44 billion by 2033, a significant increase from $8.4 billion in 2022. The state aims to capture approximately $22 billion of this market opportunity.
