Karnataka cabinet chaired by B. S. Yeddyurappa approved a new IT Policy, 2020. The Information Technology Policy 2020 will help the state to increase its contribution in achieving its goal of $1 trillion. Also, the policy will help the state to create 60 lakh jobs. The policy is to be executed between 2020 and 2025.
The main goal of the IT Policy 2020 is to enable Information Technology industry to contribute 30% to India’s goal of becoming a trillion-dollar economy. The new policy aims to boost Information Technology penetration and innovation, distributed labour force and evolve a Cyber security policy.
Why the new Information Technology policy?
Karnataka economy is centred around its IT ecosystem. The state is the IT hub of India. The capital of the state, Bengaluru is the fourth largest technology cluster globally. It is one of the largest contributors to the central coffers. Also, Karnataka was the first state in india to formulate Information Technology policy in 1997. This boosted the growth of the industry. Around 80% of global Information Technology companies have their operations in India and Research and Development centres in the state.
However, COVID-19 pandemic induced lock down has worsened finances of Karnataka. The reduction in cash inflows from the centre has forced Karnataka into more debt. It has also led to amendment of laws on industries, land and labour.
Cabinet Other approvals
The Cabinet also approved the following
- Govt of Karnataka also cleared special incentives for the newly proposed ESDM cluster (Electronics System Design and Manufacturing).
- Also, 25 per cent of subsidy on land and complete reimbursement on land conversion rate and stamp duty and registration.
- Rs 600 crores (6 Billions) were approved for the water shed rejuvenation project. This included Rs 420 crores (4.2 Billions) financing from the World Bank across 20 districts.
Through these measures, the Karnataka govt is expecting an investment of over Rs 5,00 crores. Also, it is expecting to generate 43,000 direct employment in the coming 5 years. Karnataka IT policy 2020 Karnataka IT policy 2020