Karnataka is finalising a “Government First” policy to help startups supply innovative technologies directly to State departments. The framework aims to remove procurement barriers, give young companies an early public-sector customer and accelerate the use of emerging technology in government services.
Karnataka Plans New Route for Startup Procurement
The proposed policy would allow departments to procure suitable startup-developed solutions without depending entirely on conventional tender procedures. It has received Finance Department clearance and is expected to go before the State Cabinet, with rollout targeted for September 2026.
IT Department Secretary Manjula V said consultations are being held with several departments because the framework is intended for use across the government, not only within the Information Technology Department. The aim is to make the State an early adopter of promising technologies while connecting startups with public-sector demand.
Expert Panel to Assess Technology and Pricing
Many startups, particularly deep-tech companies developing unique products, struggle to qualify for traditional government tenders. They may lack the required turnover, previous government contracts or experience in executing large projects. An original technology may also have no direct competitor, making standard price comparisons difficult.
Under the planned system, a committee of experts would evaluate a startup’s technology, decide whether it is suitable for adoption and recommend an appropriate cost. Departments could then procure approved solutions for practical applications, creating an alternative route for products that do not fit standard tender conditions.
Centres of Excellence to Link Innovation With Public Needs
Karnataka will also work with its Centres of Excellence to identify technologies capable of addressing real administrative and public-service requirements. Suitable solutions could be adopted and replicated across departments.
Officials expect the policy to strengthen the startup ecosystem by helping companies secure their first government customer, build credibility and enter larger markets. The initiative complements Karnataka’s Startup Policy 2025–30, which lists market access, infrastructure, technology development and wider ecosystem support among its major focus areas.
