The state government of Karnataka has approved a new Information Technology (IT) policy that will help the state increase its contribution to the national objective of making India a trillion dollar digital economy and and creation of 6 million jobs during the policy period. The new policy, which will be in effect from 2020-25, will help Karnataka retain and leverage its position in technology and innovations, according to a government statement. The stated goal is to enable Karnataka’s “IT industry to contribute 30%” share in a trillion-dollar digital economy”.
The COVID-19 induced lockdown has precipitated a serious fund crunch for Karnataka, compelling it to incur more debt and even amend its laws on industries, labour and land to attract more investments into the state. It also aims to boost IT penetration & innovation, enable a remote, distributed labour force beyond Bengaluru and evolve a Cyber Security policy.
Further the state cabinet has also approved special incentives for the newly proposed Electronics System Design and Manufacturing or ESDM cluster. This includes capital investment subsidy of 25% on land, complete reimbursement on costs like stamp duty and registration, land conversion rate and 100% exemption from duty on electricity. The state is expected to invest over ₹5,000 crore through this scheme, through which it expects to generate 43,000 direct jobs over 5 years.
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