Karnataka explores biotech financing framework, AI-led innovation to support sector growth

Karnataka is considering a dedicated support framework for biotechnology companies, including funding, mentoring, regulatory guidance and commercialisation assistance, as part of efforts to strengthen the state's biotechnology ecosystem and improve access to growth capital for startups.

The proposal was discussed at a meeting of the Vision Group on Biotechnology (VGBT) chaired by Biocon founder Kiran Mazumdar-Shaw, where members also identified artificial intelligence-enabled biotechnology and biomanufacturing as key focus areas for the sector's next phase of growth.

The state is also looking at ways to expand the use of AI across drug discovery, diagnostics, genomics, precision medicine and healthcare applications, the IT/BT department said in a statement.


“Karnataka has built a strong biotechnology ecosystem supported by research institutions, industry and startups. The next phase of growth will require stronger support for translational research, commercialisation and scale-up,” Mazumdar-Shaw said in the statement.

Members discussed the need for a state-level mechanism to support biotechnology ventures across different stages of growth, while improving engagement with venture capital firms, strategic investors and industry stakeholders to address funding requirements.

Biomanufacturing also emerged as a priority area, with discussions focusing on developing infrastructure to support industrial biotechnology, advanced therapeutics and export-oriented growth.

IT/BT secretary N Manjula said the government would continue to focus on strengthening the biotechnology value chain from research and innovation to entrepreneurship, manufacturing and workforce development.

“Our focus is on creating an enabling ecosystem that supports innovation, attracts investment and develops a future-ready workforce,” Manjula said.

The meeting also discussed leveraging the Bengaluru Tech Summit 2026 to showcase biotechnology startups through investor engagement programmes aimed at attracting domestic and global investment.

Other areas reviewed included regulatory and commercialisation support for startups, marine biotechnology and coastal bioeconomy opportunities such as seaweed cultivation and bioenergy, biotechnology infrastructure development, and skilling programmes for the sector.

The meeting was attended by Manjula along with Vision Group members, including G Padmanaban, Devi Shetty, Taslimarif Saiyed, Vishal Rao and Murali Ramachandra. The discussions took place at the 64th meeting of the Vision Group on Biotechnology.