Karnataka Eyes $6.2B Investment in Tech Sectors from US and Europe

Karnataka’s Information Technology and Biotechnology (IT/BT) and Rural Development and Panchayati Raj (RDPR) Minister, Priyank Kharge, anticipates the state will attract $6.2 billion in investments in biotechnology, AI, semiconductors, AVGC (animation, visual effects, gaming, and comics), and health tech sectors from the US and Europe.

Investment Mission to the US, UK, and Europe

Following a delegation visit by the IT/BT department to the US, UK, and Europe, Kharge revealed that discussions with companies and institutions are progressing, ranging from letters of intent to proposals pending before the State High-Level Clearance Committee (SHLCC). This initiative aims to position Karnataka as a premier investment hub across various technology sectors.

Promoting Karnataka at Global Events

The delegation’s itinerary included participation in London Tech Week and the International Animated Film Festival in Annecy, highlighting Karnataka’s strengths and opportunities to potential investors. One of the key objectives was to secure international participation at the Bengaluru Tech Summit 2024, scheduled for November.

Key Engagements and Prospective Deals

During the trip, the delegation engaged with major companies such as SAP Labs, Bloom Energy, Ambient Photonics, Arm Holdings, and Waters Corporation. They also met with Vinod Dham, founder of IndoUS Venture Partners, which has a history of investing in Indian startups like Snapdeal and Myntra.

Additionally, discussions were held with German firms interested in expanding to India in semiconductors, electronics, and heavy industries. The department is optimistic about attracting substantial investments from these engagements.

Upcoming Initiatives

Karnataka is set to sign a memorandum of understanding with Stanford Biodesign to launch a MedTech startup mentorship and accelerator program. This initiative is part of Stanford University’s plans to expand its ‘Founders Forum’ to Bengaluru, with a team from Stanford Biodesign expected to visit Karnataka next month.

Support for Startups

The IT/BT department is preparing a comprehensive ‘Startup Directory’ featuring profiles and turnovers of all startups in the state. Additionally, an online startup platform to connect with venture capitalists (VCs) is in the works and expected to go live within a month.

“The startup portal will facilitate connections between startups and investors, fostering better collaboration and support,” said Kharge. He added that the state is working on a new collaboration framework for startups and VCs, to be announced after the Lok Sabha polls.

Bengaluru: India’s Silicon Valley

Despite Bengaluru’s reputation as the Silicon Valley of India, recent funding trends showed Delhi NCR overtaking Bengaluru in May, with startups in the city raising $115 million, trailing behind Mumbai and Delhi NCR.

Through these strategic initiatives and international engagements, Karnataka aims to reinforce its status as a leading destination for investment, innovation, and skill development in the tech sector.