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Karnataka Government launched 1st of its kind Engineering Research & Development Policy 2021

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Karnataka launches engineering research policyOn 2nd March 2021, State Govt. of Karnataka launched the 1st of its kind Engineering Research & Development (ER&D) Policy 2021 that is aimed at making the state responsible for 45% of India’s growth in the engineering sector by 2025. This policy has the potential to provide employment opportunities to 50,000 in 5 target ER&D sectors making India an ‘Innovation driver’ of the World.

  • According to industry apex body Nasscom, ER&D has the potential to become a USD 100-billion industry in the country in the next five years.

Policy Drafted by – 

  • Department of Electronics, IT, Biotechnology and Science and Technology, Karnataka
  • Karnataka Innovation and Technology Society
  • Nasscom

5 Target Sectors – 

  • Aerospace and Defence;
  • Auto, Auto components and Electric Vehicles (EV);
  • Biotechnology, Pharma and Medical devices;
  • Semiconductors, Telecom, ESDM (Electronic System Design & Manufacturing);
  • Software products.

Overview of ER&D Policy:

i.Advantages to Investments outside Bangalore – Rental Reimbursement, Recruitment Assistance & Investment Subsidy.

ii.Developing Engineering R&D Future Skill Courses for college students.

iii.Internship Program for 3 months with a stipend of Rs. 10,000/month.

Note- With 12.8% Compound Annual Growth Rate (CAGR), ER&D is the fastest growing sector of India, that is expected to reach $2 trillion by 2025.

Reason for Launching the Policy:

  • To develop a research oriented Skilled Talent Pool.
  • To attract ER&D investment into Karnataka.
  • To Bridge the Gap between Academia and Industry.


  • In terms of subsidies, the government will offer up to 50 percent reimbursement of rentals up to Rs 2 crore to MNC entity beyond Bengaluru Urban district.
  • It will also offer recruitment assistance and up to 20 percent subsidy up to Rs.2 crore for investing in the State beyond Bengaluru.
  • These subsidies will be assessed on case to case basis based on the investment the companies are making and also employment they generate.

Additional Benefits of the Policy 2021:

  • The policy offers a CM Research Fellowship program to PhD students to provide a monthly stipend of Rs 70,000 for the first two years, Rs 75,000 for the third year and Rs 80,000 for the fourth year and an annual research grant of Rs 2 lakh.
  • 25 per cent women candidates will be considered under the programme.

Recent Related News:

i.NITI Aayog, along with the Institute for Competitiveness virtually released the 2nd Edition of Indian Innovation Index 2020. Karnataka topped the Index in the Major States Category.

ii.The Government of Karnataka entered into an agreement with Tata Technologies to upgrade and modernize 150 Government ITIs (Industrial Training Institute) at a cost of INR 4, 636.50 Crores.

About Karnataka: 
Folk Dances – Yakshagana, Dollu Kunitha.
Festivals – Hampi Festival/Vijaya Utsava, Karaga Festival, Kambala Festival.