With two landmark publications, Karnataka stakes a decisive claim as India’s most advanced innovation, semiconductor, and electronics manufacturing powerhouse—charting a $300B contribution to India’s $1T digital economy vision.
NFAPost, Bengaluru: At the Bengaluru Tech Summit (BTS) 2025, Karnataka reinforced its position as India’s undisputed innovation capital with the unveiling of two landmark documents that together outline the state’s most ambitious vision yet for the future of technology, R&D, deeptech, and high-value manufacturing.
In a collaborative effort with KDEM (Karnataka Digital Economy Mission), 3One4 Capital, and India’s leading industry bodies, the Government of Karnataka launched the Bengaluru Innovation Report 2025 (2nd Edition) and the Karnataka ESDM Directory, a first-of-its-kind, validated mapping of the state’s electronics and semiconductor ecosystem.
The releases took place in the presence of key leaders including Shri Priyank Kharge, Hon’ble Minister for IT/BT & RDPR, Dr. N. Manjula, IAS, Secretary, Department of Electronics, IT, Bt and S&T, and top industry veterans from Accel, Aarin Capital, KDEM, Keonics, IESA, SEMI, and Marvell India—signaling unified commitment from government, industry, and investors to accelerate Karnataka’s technology leadership.
Bengaluru Innovation Report 2025: India’s Most Comprehensive Innovation Landscape Study
Formally presented before industry and government leadership, the second edition of the Bengaluru Innovation Report captures the unprecedented scale and momentum of the city’s technology ecosystem.
Key Highlights of the Report:
- Bengaluru ranks #1 nationally as India’s most advanced innovation ecosystem.
- 50% of India’s AI/ML talent is concentrated in Karnataka, supported by 16 Centres of Excellence.
- The state hosts 350+ semiconductor and embedded engineering firms, the country’s largest design cluster.
- With ~3,500 funded startups and $79B in cumulative funding, Bengaluru remains India’s venture capital epicenter.
- The city is home to 53 unicorns valued at $192B, alongside 183 soonicorns.
- Deeptech investment has crossed $2.8B, spanning AI, robotics, quantum computing, space tech, and frontier sciences.
Speaking at the launch, a senior government official remarked:
“Karnataka has moved beyond being a services economy—today, it is the global headquarters for India’s innovation ambitions. This report reflects our evolution into a deeptech-first, research-driven, IP-led economy.”
Industry leaders echoed similar sentiments, highlighting Bengaluru’s unique blend of cutting-edge research, global engineering talent, startup vibrancy, and large-scale corporate R&D centres.
Karnataka ESDM Directory: A First-of-Its-Kind Mapping of India’s Electronics and Semiconductor Landscape
The second major launch at BTS 2025—the Karnataka ESDM Directory—is the most detailed mapping yet of the state’s Electronics System Design and Manufacturing (ESDM) capabilities. Developed by KDEM with inputs from IESA, SEMI, ELCINA, CLIK, CII, BCIC, and FKCCI, the directory is set to become a key reference for investors, OEMs, and policy planners.
What the Directory Reveals
According to the directory’s insights:
- 704 validated ESDM companies
- 513 manufacturing firms
- 61 design houses
- 35 GCCs / R&D Centres
- 652 companies are concentrated in Bengaluru, with emerging hubs in Mysuru (25), Dharwad (11), and Belagavi (6).
- Karnataka’s electronics strength spans:
- Industrial electronics: 516 companies (highest concentration)
- Defence & Aerospace: 82 companies
- Automotive electronics: 49 companies
- IT hardware: 44 companies
- Telecom equipment: 41 companies
This breadth of capability underscores Karnataka’s emergence not just as a design hub—but increasingly as a manufacturing powerhouse with deep industrial specialization.
A Vision Aligned with India’s $1T Digital Economy Goal
The directory reflects KDEM’s commitment to contribute $300B to India’s broader vision of building a $1T digital economy.
As highlighted in the document:
“This Directory is more than a list of companies; it is a live blueprint of Karnataka’s dynamic role in shaping India’s digital future.”
— KDEM
The publication also calls for coordinated action to:
- Attract global investments in manufacturing, design, and high-value engineering.
- Facilitate cross-border collaboration across supply chains and co-development initiatives.
- Accelerate talent development, especially in emerging clusters like Mysuru and Hubballi.
Industry and Government Leaders Unite Behind a Shared Mission
During the launch, leaders from Marvell India, IESA, and KDEM reiterated that Karnataka is poised to anchor India’s next wave of semiconductor and electronics growth.
One industry veteran noted:
“Karnataka’s ESDM ecosystem is now one of Asia’s most comprehensive—offering end-to-end capability from semiconductor design to high-value manufacturing. The directory finally puts numbers behind what the industry has known for years.”
Government representatives emphasized that the state is committed to strengthening infrastructure, incentives, and skilling initiatives to make Karnataka a preferred global destination for electronics and semiconductor companies.
A Transformational Moment for India’s Tech & Manufacturing Future
With the dual launch of the Bengaluru Innovation Report 2025 and the Karnataka ESDM Directory, the state has delivered two high-impact, data-backed documents that together form a powerful roadmap for the next decade of India’s digital and manufacturing growth.
The message is clear:
Karnataka is not just participating in India’s tech revolution—it is architecting it.
From semiconductor design to defence electronics, from AI to aerospace systems, and from deeptech to global R&D leadership, the state is building a future defined by innovation, engineering excellence, and world-class manufacturing.
As one senior KDEM leader summarized:
“Karnataka’s next decade will define India’s next century.”
