Karnataka Government Encourages Aspiring Entrepreneurs with Rs.25,000 Monthly Stipend

In a groundbreaking initiative, the Karnataka government is set to unveil an innovative entrepreneurship program designed to support individuals who have left their jobs to embark on entrepreneurial ventures. Karnataka IT-BT Minister Priyank Kharge introduced this new initiative at the Moneycontrol Startup Conclave in Bengaluru on August 9, revealing that it will offer a monthly stipend of Rs 25,000 for one year to eligible entrepreneurs. 

“This upcoming program, which might be the first of its kind in India, will provide a monthly stipend of Rs 25,000 for one year to those who have left their jobs to become entrepreneurs,” Kharge announced. “While the amount may seem modest given the current inflation, it will at least help cover essential domestic expenses.” 

This initiative is part of the larger Rajiv Gandhi Entrepreneurship Programme (RGEP), which was outlined by Karnataka Chief Minister Siddaramaiah in the 2024-25 budget. The RGEP is aimed at young innovators and entrepreneurs, particularly those with backgrounds in science or engineering. In addition to the financial support, participants will benefit from mentorship provided by K-tech innovation hubs, further enhancing the state’s supportive environment for startups. 

Kharge also highlighted the success of the Karnataka government’s Elevate program, which he called “the most-loved scheme for startups.” He pointed out that startups registered with the Karnataka government that participate in and win the Elevate program will have the government as their first customer. 

“If startups registered with the Karnataka government win the Elevate program, the government will become their first customer,” Kharge said. 

The minister emphasized Karnataka’s transformation from a center for back-office operations and IT services to a leader in research and development, making it the world’s fourth-largest technology cluster. “Bengaluru’s rise to becoming the fourth-largest technology cluster didn’t happen overnight. We evolved from a hub for IT services to a leader in R&D, driving significant innovations. Karnataka leads the Innovation Index and tops in service exports,” Kharge noted. 

In addition to the RGEP, Karnataka is also developing sector-specific corridors for startups, such as an AI corridor, with San Francisco as Bengaluru’s sister city. Kharge highlighted that the Global Innovation Alliance, which includes 32 countries, has established specific corridors for Karnataka-registered startups, facilitating their access to international markets. 

“We have Bengaluru-based startups that have expanded to Germany, Australia, and Belgium. No other state government is willing to take such risks for startups, but we are already doing so and providing valuable opportunities,” he remarked. 

Looking ahead, the Karnataka government plans to host a series of summits by November, including the Bengaluru Tech Summit, Social Innovation Summit, Urban Solutions Summit, Clean Water Summit, and Circular Economy Summit. These events will address real-world challenges and seek innovative solutions from startups. 

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