Our Tier-II and Tier-III cities present youthful demographics and cost-efficient operations

Ekroop Caur, secretary, Department of Electronics, Government of Karnataka in an email interview with Shruti Tripathi discusses the state's vision to strengthen the digital ecosystem. Edited excerpts:

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How does Karnataka plan to sustain its competitive edge in tech?

Karnataka has long been the cornerstone of India's digital economy, with Bengaluru consistently leading in IT exports, innovation and GCC [global capability centre] presence. The state commands the highest market share in both GCCs and IT exports and is home to the country's largest tech talent base. Karnataka also leads in AI readiness, housing over 50% of India's AI talent.

Karnataka's competitive edge lies in its deeply entrenched and future-ready ecosystem. This includes a mature, industry-aligned niche talent pool of over 1.2mn, highest concentration of global R&D centres with over 400 centres and a strong start-up ecosystem of over 15,000 start-ups that continue to fuel innovation and investment.

While Karnataka's Industrial Policy 2025 sets an ambitious target of generating 20 lakh new jobs, the reality on the ground shows a wave of layoffs across major industries.

While it's true that global economic headwinds have led to short-term workforce adjustments—particularly in the IT sector—our approach is rooted in building long-term, structural employment through sectoral resilience and skill alignment.

Karnataka is actively nurturing emerging and future-proof sectors such as electronics system design and manufacturing, electric vehicles, space tech and aerospace, biotechnology and renewable energy, industries that are not only less prone to global volatility but also present significant opportunities for sustainable job creation.