For the past 10 years, Karnataka and Bengaluru have thrived and progressed a great deal due to the growth of information technology sector.  In this sector, more than 30% of the IT exports and over 1/3rd employ software engineers in the nation. In 2001, the sector, which provided jobs for 1.9 lakh people, is now offering employment to 10 lakh people nowadays. Bengaluru will become the single biggest information technology and technology cluster on the planet in any single location and also the largest employer in the State by the year 2020. 

A comprehensive proposal offering of incentives, concessions, advantages etc. for the IT/ ITeS/ Start-ups/ Gaming / Animation / Computer Graphics/Telecom/BPO/ KPO / other knowledge based industries submitted at the State Cabinet was approved in the Cabinet meeting held on 17th October, 2013.

A unique characteristic of the i4 policy is the Employment-Linked Incentivisation of Land Allotment (E-LILA) outside urban Bangalore and rural district limits, which translates to land allotment for the concerned sectors at concessional cost, connected to employment generation.

The ministry has announced a single-window clearance for ITeS / IT and related industries for investments up to Rs 100 crores and employment-linked incentives for land allotment to this sector.
In order that increase the strength of the IT sector in Bangalore, the state government will set up ‘Brand Bangalore 3.0’ and ‘Bangalore First Fund’ in association with the National Association of Software and Services Companies (NASSCOM). It is to promote global investment in the state and make sure the state’s leadership in IT.
Skill Development programs will be taken in association with the Industry for training unemployed youth in basic IT / BPO / Telecom / ESDM etc., skills to be implemented in a PPP mode. The Government shall facilitate and support to arrange Skill Development financing thru Bank loans.
Start-up companies will be eligible for plug and play space with Internet at concessional rates of Rs 5-15 per square feet, depending upon location.

The supervision has extended a grant of Karnataka Industrial Employment Standing Orders Rules, 1946 to embody sectors such as gaming, animation, telecom services and other knowledge-based industries.

The Karnataka government, that has been operative for incentivising and enlivening companies and start-ups in an Electronic System Design and Manufacturing (ESDM) sector, is environment adult India’s initial Brownfield cluster growth plan in Bangalore. Typically, Brownfield projects impute to re-starting or recreating existent projects with extra investments.

Announcing a refurbish to a Karnataka i4 process a state’s IT, BT apportion has declared that a state has got in-principle capitulation for a project. “It will be set adult during an estimated price of Rs 85.15 crore on 1.16 acres in Electronic City”.

In a leg-up to start-ups, nine colleges in the state were offered an initial grant of Rs 5 lakh each to fund research on projects to solve local troubles and find solutions to local needs as part of the 'Karnataka New Age Incubation Network.'

Government’s renewed centre on offering a fillip to innovation-based industries focusing on areas such as start-ups, ESDM, animation & graphics, and other web- and mobile-based creative areas will help Karnataka retain its leadership position in the technology landscape.

The most significant resource of the Programme will be local and remote mentors and the incubation centres will have tie-ups with local industry leaders and to those who are outside in Bengaluru and abroad who may be hailing from the districts as mentors.

To attract investments to the ESDM sector, which is expected to grow to $400 billion by 2020, the state provides extra incentives to companies that register with the Karnataka wing.