Strengthening its position as India’s most advanced technology and innovation powerhouse, Karnataka unveiled two cornerstone documents that capture the state’s expanding influence across global R&D, semiconductor design, deeptech, and electronics manufacturing.
The Government of Karnataka, in collaboration with KDEM and 3One4 Capital, released the Bengaluru Innovation Report 2025 (2nd Edition) at the Bengaluru Tech Summit 2025.
Additionally, the Government of Karnataka and KDEM, working closely with leading domestic ecosystem partners, including IESA, ELCINA, ELCIA, SEMI, CLIK, BCIC, CII, and FKCCI launched the Karnataka ESDM Directory, the most detailed and validated mapping of the state’s electronics and semiconductor landscape to date.
1. KDEM’s Key Deliverables Announced at BTS 2025
A. Launch of the Bengaluru Innovation Report 2025 (2nd Edition)
The report was formally presented to Shri Priyank Kharge, Hon’ble Minister for IT/BT & RDPR, and Dr. N. Manjula, IAS, Secretary, Department of Electronics, IT, Bt and S&T, in the presence of industry leaders Sri. Sharath Kumar Bache Gowda, Chairman, Keonics ,Shri Prasanth Prakash, Partner, Accel, and Shri T.V. Mohandas Pai, Chairman, Aarin Capital, Siddharth Pai, Partner, CFO & ESG officer, 3one4 Capital, Shri B.V. Naidu, Chairman, Karnataka Digital Economy Mission (KDEM), Sanjeev Kumar Gupta, CEO, Karnataka Digital Economy Mission (KDEM) underscoring Karnataka’s continued commitment to shaping India’s most advanced innovation ecosystem.
What the report reveals:
● Bengaluru is India’s most advanced innovation ecosystem, ranking #1 nationally.
● Karnataka hosts 50% of India’s AI/ML talent and 16 Centres of Excellence.
● The city houses 350+ chip design and embedded engineering firms—India’s largest design cluster.
● Bengaluru leads India with ~3,500 funded startups and $79B in cumulative funding.
● The city is home to 53 unicorns valued at $192B and 183 soonicorns.
● Deeptech funding has crossed $2.8B, spanning AI, robotics, space, and frontier sciences.
This report provides a data-backed blueprint of how Bengaluru has transitioned from a services hub to a global innovation capital driving IP creation, research, and deep tech at scale.
B. Launch of the Karnataka ESDM Directory
The directory was formally presented to Shri Priyank Kharge, Hon’ble Minister for IT/BT & RDPR, and Dr. N. Manjula, IAS, Secretary, Department of Electronics, IT, Bt and S&T, in the presence of industry leaders Naveen bishnoi, Country Head (Marvell India) and AVP Data Center Engineering, Ashok Chandak, President , IESA & SEMI India and Shri B.V. Naidu, Chairman, Karnataka Digital Economy Mission (KDEM)
Their presence reinforced the alignment between government, industry, and ecosystem leaders. And most importantly. Karnataka is enabling a national transformation—shifting India from a services-driven IT economy to a globally competitive, innovation-led, engineering-led, and electronics-led powerhouse.
What the directory contains:
● 704 validated ESDM companies, including:
○ 513 manufacturing firms
○ 61 design houses
○ 35 GCCs / R&D centres
● Covers industrial, automotive, telecom, IT hardware, defence, aerospace & medical electronics.
● Provides a design-to-manufacturing view of Karnataka’s ESDM capability.
This directory strengthens Karnataka’s role in India’s electronics revolution and supports the state’s mission to contribute $300B to India’s future $1T digital economy.
