Karnataka — and Bengaluru in particular — is India’s deepest tech base, so its policies matter. But the support mostly targets startups, GCCs and data centres, not businesses buying AI. Here’s an honest read. (dgm implements osFoundry, a separate company’s platform — dgm is an independent integration partner, not osFoundry, and not a state-incentive consultant. General information, not professional advice.)

What Karnataka offers

  • Startup Policy 2025-30 — incubation and ecosystem support for startups.
  • GCC Policy 2024-29 — targeting 1,000 GCCs and ~350,000 jobs, with Global Innovation Districts. NASSCOM
  • IT Policy 2025-30 — software-export goals and AI Centres of Excellence. Deccan Herald
  • Data Centre Policy — 10% land subsidy + stamp-duty exemption for qualifying data centres.

Who it’s actually for

Read together, these target startups, GCCs and infrastructure investors — not ordinary businesses adopting AI. A company in Bengaluru deploying AI generally pays for it. Startup or data-centre incentives may apply if you qualify as a startup or build a data centre, but there’s no general “buy AI” subsidy (the national pattern too — see state policies overview).

A note on the figures

The Data Centre Policy terms are reported, but several startup-incentive amounts aren’t all clearly confirmed and can change. Verify any figure with Karnataka’s IT/BT department or the official policy document before relying on it.

Where dgm fits

dgm is an integration partner for companies in Karnataka adopting AI. We implement osFoundry — model-neutral, self-hostable, India data control — for a transparent $399 assessment and $3,999/month (INR approximate; 18% GST domestic). We don’t apply for or administer state incentives; for those, work with the state department or a specialist advisor.

General information, not professional advice. State policies change — verify with Karnataka’s IT department.