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Karnataka has launched its IT Policy 2025–30, marking a significant development in South India’s escalating tech rivalry. The policy introduces aggressive incentives designed to drive IT growth beyond Bengaluru, targeting tier-2 and tier-3 cities. Key provisions include 50% rent reimbursement, 30% property tax relief, a 100% electricity duty waiver, and telecom infrastructure subsidies.
This strategic rollout comes weeks after a public confrontation between Karnataka and Andhra Pradesh. Andhra Pradesh recently showcased Google’s $15 billion AI investment in Vizag, positioning itself as a burgeoning tech hub.
In response, Karnataka’s IT Minister Priyank Kharge criticised Andhra Pradesh, accusing it of "desperate scavenging for investments" and highlighting its financial liabilities.
With Andhra Pradesh flaunting major global deals and Karnataka countering with substantial incentives, the stage is set for an intense competition for talent and investment. This rivalry is poised to significantly reshape Indias technology landscape across the southern region.
