Karnataka Approves Rs. 14.2 bn Twin Policies for Blue Economy and AI

Karnataka has approved two five-year policies aimed at attracting investment, expanding economic activity and creating jobs across marine biotechnology and digital infrastructure. The Marine Biotechnology Policy 2026–2031 has a proposed outlay of Rs. 120 mn, while the Sustainable Data Centre Policy 2026–2031 carries an outlay of Rs. 13 bn. Together, the policies are intended to support the state’s next phase of growth.

The marine policy seeks to expand Karnataka’s blue bioeconomy from an estimated $2 bn to between $6 bn and $8 bn by 2031. It will focus on converting the state’s 343.3-km coastline, marine biodiversity and biotechnology capabilities into products, technologies, companies and intellectual property. Priority areas include marine biomanufacturing, seaweed-based products, marine biomaterials, bioprocessing and sustainable marine enterprises.

The policy provides for the Karnataka Institute of Marine Biotechnology and Blue Economy, to be established at the Government Fisheries College, as an institutional base for research, innovation and commercialisation. It also proposes marine biotechnology zones with shared infrastructure, logistics, testing facilities and plug-and-play units. Other measures include production-linked incentives for higher-value seaweed derivatives, a pilot blue carbon certification programme, and research, biobanking and incubation facilities, particularly in Udupi.

The state government estimates that the marine initiative will create around 2,500 high-value technical jobs and about 7,500 coastal enterprise and livelihood opportunities during the policy period. It is also intended to improve incomes for coastal communities and support export-oriented businesses while maintaining ecosystem sustainability.

The data centre policy targets 1 GW of cumulative IT load by 2031 and aims to secure 10–12 per cent of India’s AI-ready data centre capacity. It covers demand from artificial intelligence, cloud computing, the Internet of Things, 5G, global capability centres and fintech. The framework will support investment facilitation, data centre zones and parks, research and development, skilling, sustainability-linked incentives and green power integration. Implementation will begin with policy operations and investor facilitation before progressing to regional infrastructure, ecosystem expansion and consolidation beyond Bengaluru.

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