In order to encourage technological innovation in Karnataka, the State Higher Education and Minister for IT/BT and Skill Development, Dr. CN Ashwatha Narayana, said on Sunday that 200 firms will get initial investment of up to Rs. 50 lakh each this year.

The education minister, speaking on the occasion of the maiden 'National Startup Day' event held at Vidhana Soudha, remarked, "the seed funding will be facilitated to additional 75 startups to achieve the tally to 200 startups in the year."

The state has received 1.60 lakh crores in foreign direct investment in the current fiscal year, accounting for more than half of all investment in the country.

Out of the entire 57,000 startups in the country, almost 13,000 are located in the state.

He explained, “in view of maintaining the leading position of the state in the sector, the stress on digital education and skill development will be focussed through effective implementation of the National Education Policy of India (NEP) 2020.”

Narayana said, “Prime Minister Narendra Modi said that the role of startups will be crucial in India becoming “Vishwaguru and super power”. Going forward along the lines of the Prime Minister's thought, the growth of hardware will also be facilitated together with software in the state”.

According to Narayana, “5,000 crores would be allocated as a subsidy under the Electronics System Design and Manufacturing (ESDM) strategy, with 2,000 crores already allocated in the first year.”

From January 10 to 16, the Union government commemorated 'Startup India Innovation Week,' awarding national rewards to entrepreneurs that created innovative products.

14 of the 56 companies rewarded were from the state, putting the state in first place in the country.