Karnataka’s Digital Push Moves Beyond Bengaluru With KDEM–FKCCI MoU

The Karnataka Digital Economy Mission (KDEM) and the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) recently entered into a formal collaboration by signing an Memorandum of Understanding (MoU) to drive the growth of Karnataka’s digital economy.

The collaboration will prioritise district-level and cluster-based development, with a sharp focus on driving digital growth beyond Bengaluru. The initiative aims to strengthen regional innovation ecosystems, expand digital infrastructure, and enable wider participation of local enterprises in the State’s digital transformation.

Karnataka’s Digital Economy

Announcing the partnership, Sanjeev Kumar Gupta, CEO of the Karnataka Digital Economy Mission, said Karnataka’s digital growth must evolve as a statewide system rather than remain concentrated in a few centres.
The partnership will tap the FKCCI’s network of more than 30 district chambers and the Karnataka Digital Economy Mission’s cluster-led ecosystem programmes to boost MSME digitisation, startup growth, investment readiness, and entrepreneurship across Karnataka’s non-metro districts. 

Sanjeev Kumar also said, “This partnership with FKCCI enables us to move from intent to execution by aligning policy, ecosystem development, and industry participation. By activating districts and emerging clusters, we aim to unlock new investments, accelerate entrepreneurship, and ensure technology-led growth takes root across the state.”

By combining KDEM’s digital economy mandate with FKCCI’s wide industry reach, the collaboration aims to build investment-ready regional ecosystems spanning IT and ITeS, Global Capability Centres (GCCs), startups, incubators, accelerators, skilling institutions, investors, and emerging technology domains, extending digital growth well beyond Bengaluru.

Uma Reddy,president, FKCCI, added, “For industry, this MoU translates into clearer pathways to participate in Karnataka’s digital economy.” She also said that FKCCI will leverage its district chambers and member network to work with the KDEM to connect enterprises, startups, and MSMEs with investment, skilling, and innovation opportunities, with a focus on strengthening district- and cluster-level ecosystems and enabling technology-led scale-up.

In Focus

Driving tangible ecosystem outcomes, the MoU will see the KDEM and FKCCI focus on measurable impact across Karnataka’s digital economy, including

• Investment facilitation: Coordinated investor outreach and handholding for domestic and global companies.
  Beyond Bengaluru growth: Strengthening startups, MSMEs, entrepreneurship, and investment readiness across identified districts and clusters.
• Cluster-led interventions: Startup showcases, industry-startup connect programmes, awareness drives, and investment facilitation.
• Skilling and capacity building: Industry-aligned workshops, bootcamps, conferences, and training for future-ready talent.
• Research and insights: Joint studies, market research, and sectoral reports to inform policy and ecosystem planning.
• Public-private partnerships: Support for startups, certification programmes, innovation initiatives, and job placements.
• Policy engagement: Stakeholder consultations and recommendations to boost competitiveness, innovation, and ease of doing business

Dr. Manjula, secretary, Department of Electronics, IT & BT, Government of Karnataka said, strengthening district-level ecosystems and industry participation will support inclusive innovation, job creation, and sustained economic development beyond Bengaluru.

With the partnership in place, the emphasis now moves to on-ground action, activating district-level ecosystems, building relevant skills, improving access to investors, and helping startups and MSMEs grow. By turning policy alignment and industry collaboration into practical results, the initiative aims to create steady pipelines of businesses, talent, and innovation across Karnataka, ensuring technology-led growth reaches more regions and supports long-term, inclusive development.