We need to brace up because of unpredictable US policy: Priyank Kharge

The state's IT and biotechnology minister outlines strategies to attract investment, foster DeepTech and AI, and develop specialised talent amid global trade and visa challenges

Karnataka’s minister for IT and biotechnology, Priyank Kharge, is steering the state’s push into DeepTech, AI and advanced manufacturing. As one of India’s leading tech hubs, Karnataka faces competition from neighbouring states while seeking to attract investment, develop specialised talent and expand infrastructure. In this interview with Peerzada Abrar, Kharge discusses the state’s policies, incentives and initiatives, and addresses potential headwinds from US trade tariffs and H-1B visa rules, offering insight into how Karnataka aims to stay at the forefront of technology and innovation. Edited excerpts:

 

Q1. Karnataka is betting big on DeepTech and artificial intelligence. What's the aggregate investment target—FDI plus domestic—that Karnataka is chasing over the next 2-3 years? And more critically, how are you competing with Maharashtra, Telangana and Tamil Nadu, who are all aggressively courting the same investors?

 

While the competition is on paper, let’s look at the data. We are among the top startup ecosystems globally. We are the fourth-largest technology cluster. Our IT exports are about Rs 4.5 lakh crore — Telangana is at about Rs 2.1 lakh crore.

 

We contribute the highest to the national bio-economy and are leading in areas such as aerospace, defence, space tech, global capability centres (GCCs), talent acquisition and office space leasing. So while there is a lot of attention when my neighbours speak, the data speaks for us. We have moved up the value chain. We are not just an IT services hub anymore. Companies are coming here and filing their IPs.

 

Q2. What specific incentives—tax breaks, land allocation, regulatory fast-tracking—are you offering that they're not?

 

It’s not about foreign direct investment (FDI) alone. That is a combined effort between industry and us. But this year, we have overtaken even Maharashtra. The intention is to give the best ecosystem and policies. We have ensured that the new industrial policy, the IT policy, the GCC policy and the space tech policy — all of these — are in line with faster clearances and faster approvals.

 

Q3. The Trump administration's trade tariffs and potential H-1B visa restrictions could directly impact India’s $250 billion tech sector, which is heavily dependent on US clients and talent mobility. You led delegations to the US for investment roadshows — what's the sentiment now and is Karnataka seeing any impact? What's your contingency plan if visa restrictions tighten further?

 

See, already the US administration has cleared the air about the H-1B thing. So it’s more prospective than retrospective. The companies that want to come here are re-strategising, and that’s why we have policies like the one related to the global capability centres (GCCs). So I don’t think it has any short-term impact as of now.

 

But yes, we need to brace up because of the unpredictable policymaking in the US right now. Although we are the most affected, I think it affects the country at large also. So I think the central government needs to be a little more proactive in trying to ensure that they have better relationships with countries.

 

Q4. Karnataka dominates IT services, but AI, semiconductors and DeepTech require different ecosystems — fabs, chip design talent and huge investments. Is Karnataka positioning itself primarily as a design hub, or are you seriously pursuing manufacturing?

 

We are moving up the value chain beyond services. For example, we announced the Deep Tech Decade. We are going to concentrate on all emerging technologies across sectors. It’s about creating an ecosystem where we can have various centres of excellence, common instrumentation facilities and partner with knowledge hubs across the globe.

 

Basically, how do we ensure that we innovate from Karnataka for the world? That is what we are trying to do. We are positioning ourselves as a skill hub and a knowledge hub, not as an investment destination alone. This will include manufacturing across sectors besides GCCs and services.

 

Q5. Any new partnerships with global semiconductor players you would like to reveal?

 

We are in talks with all of them. And of course, their supply chain is here. In ESDM — Electronic System Design and Manufacturing — the design talent pool is huge; 40 per cent of the entire talent sits out of Karnataka. So design-wise, we are unbeatable. But manufacturing is something that we are looking into.

 

Q6. The Future Makers Conclave at the Bengaluru Tech Summit this week is bringing together thousands of founders, investors and ecosystem players. Beyond the summit, what tangible support mechanisms are you creating?

 

The Future Makers Conclave is where we are getting all the 10,000 techno-preneurs together. It is not just about funding — there will be networking, mentoring and industry leaders sharing their experiences.

 

We will also be creating a track where we will actually be giving out funds from the state. This will go up to a few hundred crore. We are also talking with private funds. This is targeted for AI and DeepTech areas.

 

We run the most successful grant programme — we have already funded over 1,087 companies without taking any equity. And more importantly, this year we had more than 1,700 people register with us, and we are funding more than 143 companies.

 

We will be launching the new IT policy at the Bengaluru Tech Summit, along with the new startup policy and the space policy.

 

Q7. DeepTech and AI require specialised talent. Is the talent pipeline adequate? What's your strategy on skilling and reskilling?

 

There is enough human resource, but they need to be re-skilled and up-skilled at scale. We run the NIPUNA programme, the biggest re-skilling talent programme. It is an issue and that is something the government should not shy away from. We are partnering with both industry and academia. With AI coming in, the perceived threat is more. But irrespective of what it is, we need to ensure that we have the best-trained human resource in the world.

 

Q8. Recently a tweet by a startup founder about Bengaluru’s infrastructure challenges led to a huge public debate — highlighting urgent calls for government action and civic responsibility. How would you respond to that?

 

While we encourage any constructive criticism, it’s a problem with any growing city. But the government is doing more than it can to ensure that we provide a great environment. We are building the underground tunnel road network, a Rs 40,000 crore project. We are extending the Namma Metro, we are building the suburban rail. All these are happening to decongest. Infrastructure is always a work in progress.

 

Q9. Karnataka is drafting a Misinformation Bill. What's the current status of the bill, and more critically, how will you ensure this doesn't become a tool for political censorship or selective enforcement?

 

The bill is now in the department of vetting the proposal we have sent. And it’s not going to curb any freedom of speech or any of those things — like satire and humour and other things. It is merely going to advocate what is already prescribed across different departments. And we will be implementing that.