Bengaluru, March 7: Karnataka Chief Minister Siddaramaiah announced a significant boost for innovation and employment across the state with the introduction of the Local Economy Accelerator Programme (LEAP). The program, funded with a substantial grant of Rs 1,000 crore, aims to stimulate entrepreneurship beyond Bengaluru and create around 5 lakh employment opportunities.
Delivering the state budget on Friday, Siddaramaiah allocated Rs 200 crore for the current financial year towards the implementation of LEAP. Under this initiative, dedicated startup ecosystems will emerge in prominent regional hubs like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi.
Comprehensive Startup Ecosystem Development
LEAP will adopt a lifecycle approach, systematically setting up incubators, accelerators, centres of excellence, and Global Technology Centres (GTCs) to nurture innovation. Additionally, the Chief Minister proposed earmarking Rs 300 crore for a Fund-of-Funds initiative and a corpus fund of Rs 100 crore specifically focused on Deep-tech development.Making Karnataka a Hub for AI and Quantum Tech
With a vision to position Karnataka as a global leader in artificial intelligence, Siddaramaiah announced the establishment of a dedicated Centre for Applied AI for Tech Solutions (CATS). The state will invest Rs 50 crore over the next five years in this initiative.
Moreover, to advance quantum technology, a Quantum Research Park (Phase-2) will be established at the prestigious Indian Institute of Science (IISc), Bengaluru, with a grant of Rs 48 crore over three years.
Electronics and Sensor Technology Initiatives
In a bid to bolster electronics manufacturing, a state-of-the-art PCB Park will come up on 150 acres in Mysuru, creating a dedicated ecosystem for electronics companies. Complementing this, the government plans to develop a SensorTech Innovation Hub in collaboration with industry and the Central Government, with a total investment of Rs 99 crore, aimed at boosting research, skill development, and ecosystem building for sensor technology.Agricultural and Electric Vehicle Infrastructure Boost
To integrate technology into agriculture, an Agri-Tech Accelerator is planned for Kalaburagi, accompanied by a flat factory with plug-and-play facilities to encourage industrial setups.Recognizing the growing importance of electric vehicles (EVs), the Chief Minister also announced a testing track of international standards and a dedicated EV manufacturing cluster in Bengaluru at a cost of Rs 25 crore.
Major Investments and Industrial Parks
Highlighting significant private investment, Siddaramaiah noted that Foxconn has commenced a mobile phone manufacturing facility in the Devanahalli Industrial Area, with an impressive investment of Rs 21,911 crore. The state government will provide the company with incentives worth Rs 6,970 crore through its Electronics System Design & Manufacturing (ESDM) scheme.To attract international investments, a Japanese Industrial Park will be set up at the Tumkur Industrial Node under the Chennai-Bengaluru Industrial Corridor. Karnataka also plans to leverage the upcoming World Expo in Osaka, Japan, as a strategic platform to attract more global investments.
Women-Centric Infrastructure Development
To enhance workplace safety and accommodation for working women, the budget has proposed constructing a large dormitory with a capacity of 6,000 in Narasapura, Kolar district at a cost of Rs 173 crore, along with a working women's hostel in the Vasantanarasapura industrial area, Tumkur district, costing Rs 20 crore.Encouraging MSMEs and Balanced Regional Development
In line with its goal to balance regional development, Karnataka will introduce a separate Micro, Small and Medium Enterprises (MSME) Policy. This policy aims to support MSMEs, accelerate economic growth, and achieve Karnataka's Sustainable Development Goals. A new industrial area with flatted factories and plug-and-play facilities is also proposed in Thidagundi, Vijayapura district, to foster industrialization in North Karnataka.
