India, Nov. 21 -- Karnataka is moving decisively to decentralise its tech economy, offering substantial financial incentives to shift companies out of Bengaluru.

In a bid to pull companies out of Bengaluru's overcrowded, high-cost ecosystem, the state government has unveiled a new IT-BT Policy (2025-2030) that literally pays startups and tech firms to shift their operations to Tier-2 and Tier-3 cities.

The policy outlines plans to build and expand innovation clusters, startup zones, and sector-specific hubs in cities like Mysuru, Mangaluru, Hubballi-Dharwad, Shivamogga and Kalaburagi. The policy sets a target of 30,000 startups by 2030, with at least 5,000 coming from Tier-2/3 cities.

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