Tech giants' exponential growth and valuation reaching unprecedented heights

India is making significant strides in the global digital landscape, with Karnataka playing a pivotal role in this transformation. The southern state, home to over 875 Global Capability Centres (GCCs), is stepping into the spotlight as an architect of the global digital future.

In 2021, India's Software as a Service (SaaS) firms generated around $2.6 billion in revenue, a figure projected to reach $50-70 billion by 2030. Karnataka, which hosts more than a third of all GCCs in India, is making ambitious plans to add 500 more by 2029, creating 350,000 jobs and contributing $50 billion to the economy.

The state government has outlined a multi-pronged strategy to become a global tech nerve center and powerhouse for innovation. Key measures include the Karnataka Digital Economy Mission (KDEM), the Karnataka Quantum Mission (KQM), and efforts to expand and decentralise the GCC ecosystem beyond Bengaluru.

The KDEM aims to grow the digital economy across sectors, including IT/ITES, GCCs, electronics hardware, and deep tech. It operates through three key pillars: helping existing companies grow, attracting new investments, and enabling innovation that drives new revenue models. The mission also promotes development outside Bengaluru under the initiative "Beyond Bengaluru," targeting regional tech hubs in Tier 2 and Tier 3 cities to distribute innovation more inclusively.

The KQM, with a ₹1,000 crore (~$114 million) fund, targets a $20 billion quantum economy by 2035. This includes establishing a Quantum Technology Task Force, a Quantum Innovation Hub called Q-City, India’s first Quantum Hardware Park, four Innovation Zones, and dedicated fab lines for quantum component manufacturing. Talent development through quantum skilling programs at over 20 colleges, 150 PhD fellowships annually, and fostering 100+ startups and 100+ patent filings are central pillars of the mission.

In addition to these initiatives, Karnataka is home to over 18,300 startups and more than 45 unicorns. Programs like Startup Springboard connect startups with investors, mentors, and global networks. New integrated ecosystems, such as QWIN City, combine wellness, innovation, and new-age industries to attract global talent and investors, offering dedicated R&D clusters and infrastructure for living and working innovatively.

The government provides strong policy backing and infrastructure development, including wellness-centric innovation cities, specialized clusters, and fostering public-private partnerships to position Karnataka as Asia’s leading quantum and deep tech hub. The state also fosters strong government-industry collaboration, global partnerships, talent availability, and vibrant innovation networks to maintain competitive advantage in deep tech.

These strategies focus on talent development, infrastructure creation, industry support, global partnerships, startup acceleration, and regional inclusion to transform Karnataka into a global hub for technology innovation and economic growth. In 2023, Karnataka rolled out a dedicated GCC policy, aiming to reach 1,000 centres and 350,000 new jobs by 2029.

India's digital prowess is evident in innovations like the Unified Payments Interface (UPI), which powers 48.5% of the world's real-time payment transactions, and platforms like Aadhaar and DigiLocker, which are empowering millions with identity, payments, and data access. These GCCs are innovation powerhouses, focusing on AI, cybersecurity, and core product engineering.

India can set benchmarks in deep-tech sectors like quantum computing, robotics, and advanced semiconductors. With supportive capital and generative AI integration identified as key accelerators for the growth of India's SaaS industry, Karnataka is poised to lead this charge. As India's trillion-dollar tech ambitions take flight, Karnataka has become a launchpad for this exciting journey.

The digital economy in Karnataka is projected to contribute $50 billion to the nation's economy by 2029, with plans to add 500 Global Capability Centres (GCCs) and create 350,000 jobs.
Karnataka's KDEM mission aims to grow the digital economy across various sectors, including IT/ITES, GCCs, and deep tech, by helping existing companies grow, attracting new investments, and promoting innovation.
The Karnataka Quantum Mission (KQM) aims to establish a $20 billion quantum economy by 2035, focusing on quantum technology research, talent development, startup acceleration, and infrastructure creation.
India's digital landscape is marked by innovative solutions like the Unified Payments Interface (UPI), which powers a significant portion of the world's real-time payment transactions, and platforms like Aadhaar and DigiLocker, empowering millions with identity, payments, and data access.
Karnataka's GCCs focus on cutting-edge technologies such as Artificial Intelligence (AI), cybersecurity, and core product engineering, positioning the state as a global hub for technology innovation.
To maintain its competitive advantage in deep tech, Karnataka fosters strong government-industry collaboration, global partnerships, talent availability, and vibrant innovation networks.
With supportive capital and the integration of Generative Artificial Intelligence (AI) identified as key drivers for the growth of India's SaaS industry, Karnataka is well-positioned to lead in deep-tech sectors like quantum computing, robotics, and advanced semiconductors, setting benchmarks for the nation's ambitious tech ambitions.