India Bets Big: ₹518 Crore Boost for AI & Blockchain Startups in 2025
India’s tech moonshot just got a half-billion-rupee fuel injection. The government’s throwing ₹518 crore at AI and blockchain startups—because nothing says ‘innovation’ like bureaucrats writing checks.
Follow the money (or the hype)
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Expanding innovation beyond Bengaluru
Karnataka already has over 18,000 registered startups, which is about 15% of all startups recognised by the DPIIT in India. The state is home to nearly 50 of the country’s 118 unicorns, making it the leading startup hub in the nation. Bengaluru, especially, has been getting a lot of attention internationally and now ranks 10th among the world’s top 20 startup cities, according to the Global StartupBlink Index 2025.
The new policy wants to do things differently. Rather than just focusing on Bengaluru, the policy wants to support startups in smaller towns and cities, giving people outside the capital a real chance to start and grow their businesses. Officials say this will make the startup ecosystem more inclusive and spread opportunities across the whole state.
Comprehensive support for startups
This policy isn’t only about funding. It’s about building an environment that helps startups grow in all ways. Entrepreneurs will get access to incubation centres, proper infrastructure, and mentors to guide them through the challenges of starting and growing their business.
The policy also asks startups to think beyond just earning profits. It encourages startups to take on projects that solve social and environmental problems and also contribute to bigger goals like ESG and the UN’s Sustainable Development Goals.
Karnataka has also boosted its Global Innovation Alliances program, which helps local startups connect with partners in more than 30 countries. The main focus areas are renewable energy, clean technologies, and circular economy solutions. Additionally, the Grand Challenges Program gives startups a real chance to test ideas that can have a positive impact on people’s lives and the environment.
Blockchain and governance
At the same time, Karnataka is using blockchain to make government work safer and more transparent. Across India, the National Blockchain Platform has already verified more than 34 crore documents, including property papers and academic certificates. In Karnataka, platforms like Aushada are using blockchain to track medicines. This makes sure the records cannot be changed and the entire supply chain stays accountable.
Other cities are doing the same. In Amravati, Maharashtra, municipal records like trade licenses, construction approvals, and fire safety certificates are now being stored on blockchain. Each record has a QR code, so anyone can check it instantly. This keeps the records secure, cuts down on fraud, and makes government work faster, simpler, and easier for people to trust.
Looking ahead
Karnataka’s startup policy has Rs 518 crore set aside over the next five years, and it’s clear the state wants more than just numbers. Startups will get guidance from mentors, access to good infrastructure, and chances to connect with global markets. This policy is different because it’s not just focused on Bengaluru.
The government is also helping startups in smaller towns and supporting projects that have a positive impact on society and the environment. The aim is to make innovation and opportunities available to everyone, not just the big cities. For a state that already leads India in startups, this could help create a new generation of entrepreneurs who are not only successful but also socially responsible.
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