Karnataka IT Policy: Time For Revanth Reddy To Wake Up?

The Karnataka government has introduced its Information Technology Policy 2025-2030 to decongest Bengaluru and promote growth in tier-2 and tier-3 cities such as Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Tumakuru, Kalaburagi, and Shivamogga. The policy offers major benefits for companies shifting out of Bengaluru, including a ₹50,000 relocation grant per employee, three years of full rent reimbursement, property tax waivers, electricity duty waivers, EPF reimbursements, and strong skilling support.

Unveiled at the Bengaluru Tech Summit 2025, the “Beyond Bengaluru” plan aims to move about 1.5 lakh tech jobs to other regions. The goal is clear: reduce the pressure on Bengaluru and develop new innovation hubs across the state. This policy comes at a time when traffic congestion and poor urban planning have pushed companies to consider relocating.

KTR used this same pitch in Telangana, and Nara Lokesh is doing it now. The Congress government in Karnataka seems to have understood the importance of shifting IT growth beyond the capital. This offers an important lesson for the Revanth Reddy government in Telangana.

KTR tried to expand IT beyond Hyderabad during the previous term. Only a few companies entered tier-2 cities, and the overall plan failed. With Hyderabad now facing its own traffic crisis, the Revanth Reddy government needs a similar policy without delay.

Every year, around one million vehicles enter Telangana roads, and nearly half of them are in Hyderabad. Karnataka already leads the country as India’s Silicon Valley. If its government pushes companies into other cities through strong incentives, investors may pick Karnataka over Hyderabad or Andhra Pradesh.

The Andhra Pradesh government has already rolled out aggressive incentives, and the plan is working. Telangana needs to respond quickly. Hyderabad generates a large share of the state’s revenue through IT, pharma, real estate, and services. Estimates show that Hyderabad and nearby districts contribute up to 70 percent of state revenue.

Telangana must now look beyond the GHMC region and spread development across the state. Waiting any longer will make the challenge even harder.