KDEM and FKCCI to accelerate Karnataka's Digital Economy beyond Bengaluru

Karnataka Digital Economy Mission (KDEM) and the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) have formalised a strategic partnership through a Memorandum of Understanding (MoU) to accelerate Karnataka’s digital economy, with a focus on district-level and cluster-based development Beyond Bengaluru.

The collaboration will leverage FKCCI’s network of over 30 district chambers, alongside KDEM’s cluster-led ecosystem initiatives to drive MSME digitization, startup growth, investment readiness, and entrepreneurship across non-metro districts in Karnataka.

This unites KDEM's digital economy mandate with FKCCI's extensive industry network spanning enterprises, MSMEs, startups, and district chambers building investment-ready ecosystems across IT/ITeS, Global Capability Centres (GCCs), startups, incubators, accelerators, skilling institutions, investors, and emerging technology domains.

Announcing the collaboration, Sanjeev Kumar Gupta, CEO, KDEM, said: “Karnataka’s digital growth must be built as a statewide system, not limited to a few centres. This partnership with FKCCI enables us to move from intent to execution by aligning policy, ecosystem development, and industry participation. By activating districts and emerging clusters, we aim to unlock new investments, accelerate entrepreneurship, and ensure technology-led growth takes root across the state.”

Uma Reddy, President, FKCCI, added: “For industry, this MoU translates into clearer pathways to participate in Karnataka’s digital economy. Through our district chambers and member network, we will work with KDEM to connect enterprises, startups, and MSMEs to investments, skills, and innovation opportunities. The emphasis is on enabling businesses on the ground especially district and cluster ecosystems to grow, collaborate, and scale in technology-driven sectors.”

Dr Manjula, IAS, Secretary, Department of Electronics, IT & BT, Government of Karnataka, said: “This partnership aligns with the Government of Karnataka’s vision to drive balanced digital growth across the state. By strengthening district-level ecosystems and encouraging industry participation, we are creating the foundation for inclusive innovation, employment generation, and sustained economic development Beyond Bengaluru.”

Driving tangible ecosystem outcomes: 
Under the MoU, KDEM and FKCCI will jointly focus on delivering measurable outcomes for Karnataka’s digital economy, including:
• Investment promotion and facilitation, with coordinated investor outreach and handholding for domestic and foreign companies.
• Beyond Bengaluru ecosystem development, strengthening entrepreneurship, startup growth, MSME digitisation, and investment readiness in identified districts and clusters.
• Cluster-specific interventions, such as startup showcases, industry–startup connect programmes, awareness initiatives, and investment facilitation activities.
• Capacity building and skilling initiatives, including workshops, bootcamps, conferences, and training programmes aligned with industry demand and future-of-work requirements.
• Joint research, market studies, and sectoral reports to support informed policy-making and ecosystem planning.
• Public–private partnerships to advance startup support, certification programmes, innovation initiatives, and job placement services.
• Policy recommendations and stakeholder consultations to enhance competitiveness, innovation, and ease of doing business.

With this partnership, the focus now shifts to execution, activating district-level ecosystems, enabling targeted skilling, facilitating investor access, and supporting startups and MSMEs to scale. By translating policy alignment and industry participation into practical outcomes, the initiative aims to create stronger pipelines of enterprises, talent, and innovation across Karnataka. This ensures technology-led growth benefits all regions and drives long-term, inclusive development.