Bengaluru, often referred to as the Silicon City of India, is set for a major transformation as the Karnataka government unveils an ambitious budget focused on infrastructure, technology, and clean mobility. With a sharp emphasis on expanding metro lines, boosting the IT and biotech sectors, and strengthening road networks, the state is gearing up to position Bengaluru as a global investment and innovation hub.
Massive Investment in Infrastructure and Metro Expansion
The Karnataka government has significantly increased its annual grant for Bengaluru’s development from ₹3,000 crore to ₹7,000 crore. This boost will be channeled through a Special Purpose Vehicle to execute major infrastructure projects on priority.
One of the biggest highlights of the budget is the expansion of Namma Metro. Bengaluru’s metro network, currently spanning 79.65 km, will see an addition of 98.60 km in the next two years. Plans are also in place to extend the metro up to Devanahalli, connecting the upcoming Bengaluru Signature Park, which will be spread across 407 acres.
To tackle traffic congestion, the government has announced the construction of a 40.5 km double-decker flyover as part of Namma Metro Phase-3, with an allocation of ₹8,916 crore. Additionally, a 300 km road network will be developed using canal buffer zones, and a 460 km arterial and sub-arterial road network will be upgraded at a cost of ₹660 crore.
The much-delayed Peripheral Ring Road project has been revived and rebranded as the Bengaluru Business Corridor. With a budget of ₹27,000 crore and support from HUDCO Bank, the land acquisition process has already begun.
Tech and Innovation Take Center Stage
Recognizing Bengaluru’s position as India’s tech capital, the budget has allocated ₹1,000 crore for the LEAP (Local Economy Accelerator Program) to boost innovation and entrepreneurship beyond the city. This initiative, which starts with ₹200 crore this year, aims to generate five lakh jobs across the state.
The government is also implementing a new IT policy for 2025, focusing on cloud computing and emerging technologies. It plans to expand the IT sector to Tier-II and III cities, ensuring that Karnataka remains a dominant player in the global tech ecosystem.
A major push for AI and deep-tech research has also been announced. Over the next five years:
- ₹50 crore will be invested in setting up the Centre for Applied AI for Tech Solutions (CATS).
- ₹48 crore will be spent on developing Quantum Research Park Phase-2 in collaboration with IISc Bangalore.
- ₹300 crore has been earmarked for a Fund-of-Funds, along with a ₹100 crore corpus for deep-tech innovation.
Additionally, a 150-acre PCB park will be developed in Mysuru to strengthen the electronics manufacturing ecosystem, and a ₹99 crore Sensor Tech Innovation Hub will be set up in collaboration with the central government and industry partners.
Boosting Clean Mobility and Sustainable Growth
Karnataka is also taking significant strides in sustainable mobility. The newly introduced Karnataka Clean Mobility Policy 2025-30 aims to attract ₹50,000 crore investment in the lean mobility automotive value chain and create one lakh jobs.
To encourage EV manufacturing and adoption, the government is setting up:
- A state-of-the-art EV cluster with shared infrastructure at a cost of ₹25 crore.
- An international standard EV testing track in Bengaluru.
Further, the Bengaluru Suburban Railway Project, spanning 148 km and 58 stations, is progressing steadily. Two corridors are already under construction, with the tender process for the remaining two corridors set to be completed soon.
Revitalizing Bengaluru’s Water Resources
The Cauvery Stage-5 project, which supplies 775 MLD of additional water to Bengaluru, was dedicated to the public last year, benefiting 50 lakh residents. Now, a Detailed Project Report (DPR) for Cauvery Stage-6 is underway to further enhance water availability.
Lakes are also getting a much-needed revival. Under the Brand Bengaluru Green Bengaluru initiative, ₹35 crore has been allocated for 14 lakes, while ₹234 crore is being spent on rejuvenating Varthur and Bellandur lakes.
Brand Bengaluru: A ₹1,800 Crore Makeover
The Karnataka government has committed ₹1,800 crore towards 21 schemes under the Brand Bengaluru project. Key initiatives include:
- ₹3,000 crore financial assistance to BBMP and BWSSB for developing a systematic drainage network to tackle urban flooding.
- A new biogas-based income and carbon credit program for Bengaluru’s STP units under the PPP model.
- North-South and East-West tunnel projects costing ₹40,000 crore, backed by a ₹19,000 crore government guarantee.
A New Era for Karnataka’s Growth
With these landmark initiatives, the Karnataka government is charting a new course for Bengaluru and the state’s future. The blend of infrastructure upgrades, IT and biotech expansion, sustainable urban planning, and innovation-led economic policies is expected to solidify Karnataka’s position as a global tech and investment powerhouse.
As Bengaluru gears up for this transformative journey, the coming years promise a modern, efficient, and globally competitive city, ready to lead India into the future.