Karnataka Blockchain Policy Boosts AI and India Crypto Growth

Karnataka Blockchain Policy Aims to Boost AI, DeepTech Growth

Karnataka Blockchain Policy To Frame New Paths

In a landmark move for India’s innovation ecosystem, the Karnataka Cabinet on November 6 approved the Karnataka Startup and Innovation Policy 2025-2030, setting aside ₹518.27 crore to drive the creation of 25,000 new startups across emerging technology sectors. The policy aims to make the state a global leader in Artificial Intelligence (AI), Blockchain, Quantum Computing, and other DeepTech domains, reinforcing the state’s role as country’s tech Capital.

Source: TheTimesOfIndia

The strategy focuses on key pillars:

• Funding and grants for early-stage ventures

• Incubation and infrastructure development across districts

• Skill development and mentorship programs

• Global partnerships and market access

• Regulatory support to ease startup growth

This approach ties in with the India National Blockchain Framework, which promotes distributed network's use in governance, digital identity, and public data systems – an area where Karnataka-aims to play a leadership role. 

 A Sign of Gradual Tech and Crypto Maturity

The move comes as country's broader approach to digital assets and emerging technologies continue to evolve. Recently, the Madras High Court, in a 2025 ruling, recognized cryptocurrency as legal property, providing protection to virtual asset holders under Indian law.

While the national government has yet to release comprehensive Indian crypto rules, such judicial decisions, alongside Karnataka’s blockchain-friendly policies, signal a growing recognition of the role that decentralized technologies can play in India’s economic future.

Concerns With Hopes: India-On Global Level

As India and crypto continue to mature together, policies like Karnataka’s could pave the way for a balanced approach, one that embraces AI and blockchain's innovation while ensuring regulatory clarity and inclusive growth.

However, the nation still lags behind global tech leaders when it comes to clear crypto regulations and large-scale blockchain-integration, even after ranked 1st in cryptocurrencies adoption. While countries like Singapore, Japan, and the UAE have already established comprehensive frameworks for digital asset licensing, stablecoin use, and tokenized finance, India’s progress remains cautious and fragmented. The absence of a unified crypto regulation bill slowed domestic innovation and venture capital inflows into blockchain-startups.

To unlock full growth potential, experts suggest the nation must align state-level innovation programs, like the Karnataka's AI and Blockchain Policy, with a national blockchain-roadmap. Broader adoption in areas such as supply chain management, digital identity, land registry, and healthcare could help India-transform blockchain from a niche sector into a mainstream digital infrastructure.