Karnataka Startup Policy 2025-30: Govt First Program to Offer Rs 25 Lakh Pilot Orders to Selected Startups

Karnataka is set to give startups a direct opportunity to work with government departments, with the state planning to invest Rs 25 crore in pilot projects over the next three years. The initiative, called Government First, is aimed at helping around 100 startups test their ready-to-use technology in government departments and build a possible route towards larger procurement orders.

Karnataka Startup Scheme: Government First Program Gets Rs 25 Crore to Fund Startup Pilot Projects

Under the program, selected startups can receive work orders of up to Rs 25 lakh for individual pilot projects. The initiative has been launched under the Karnataka Startup Policy 2025-30 and will be implemented as part of the state’s flagship Elevate program.

For startups, getting a government department as an early customer can be a major advantage. A successful pilot can help a young company establish its technology, gain valuable implementation experience and build credibility with other institutional customers.

Karnataka Government First Scheme: How Startups Can Participate

The Government First program will allow startups to enter through two routes. Government departments can identify specific problems and invite startups to offer solutions. Startups can also approach departments on their own if they have a product that can address an identified public-service requirement.

The scheme is focused on technologies that are ready for deployment. It is not intended to fund products that are still at the research or development stage. Startups participating in the program will therefore need to demonstrate that their solutions can be implemented and tested in an actual government environment.

For government departments, the pilot model provides an opportunity to test new technology without immediately entering into a large procurement exercise. If a solution performs well during the pilot, the concerned department can consider taking it forward for procurement and wider implementation.

Winning government business can be difficult for smaller and younger startups because public procurement often involves eligibility criteria, previous experience, compliance requirements and financial conditions.

The Government First program is intended to give such companies an opportunity to prove their capabilities through actual deployment. A government work order can also become an important reference for startups when they approach other large customers.

The initiative is particularly relevant for Karnataka, which has a strong startup and technology ecosystem centred around Bengaluru. By encouraging government departments to test solutions developed by startups, the state is looking to create a larger market for locally developed technology.

AI, Healthcare, Agriculture Among Focus Areas

The program will cover several sectors where technology can improve public services. Artificial intelligence, digital governance, healthcare, agriculture, education and mobility are among the key areas identified under the initiative.

Startups working on AI-based tools, healthcare technology, agricultural solutions, mobility platforms and digital government services could therefore find opportunities to test their products through the program.

For AI companies, government deployment can also provide an opportunity to assess how their technology performs in real-world conditions. Issues such as data privacy, cybersecurity, accuracy, bias and accountability will remain important considerations before such solutions are adopted on a larger scale.

Startups to Retain Intellectual Property Rights

The Karnataka government has also clarified that startups participating in the program will retain ownership of their intellectual property (IP). This could be particularly important for technology startups whose products are built around proprietary software, technology or processes. The arrangement allows companies to work with government departments without giving up ownership of the underlying technology.

Startups could subsequently use the experience gained through a government pilot to take the same product to other customers and markets.

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