State Startup Wars 2.0: How New Policies in Telangana, Karnataka & Maharashtra Are Competing for Founders

India’s startup ecosystem is witnessing a fierce interstate rivalry in 2025, where Telangana, Karnataka, and Maharashtra are unleashing updated policies, massive funds, and tailored accelerators to lure founders and decentralize innovation beyond metros. With national funding at $15.6 billion YTD (Tracxn), these states are battling for a slice of the $1 trillion innovation pie by 2030: Telangana’s AI-focused Rs 1,000 crore Fund of Funds and AI Accelerator aim for 10,000 startups; Karnataka’s Startup Policy 2025-2030 (Rs 518.27 crore outlay) targets 25,000 ventures, including 10,000 outside Bengaluru; Maharashtra’s Startup Policy 2025 eyes 50,000 startups and 1.25 lakh entrepreneurs via Rs 500 crore Maha-Fund.

This “wars 2.0″—building on 2022 policies—emphasizes deep tech, women-led ventures, and Tier-2/3 hubs, with Karnataka leading unicorns (51), Telangana surging in AI (Google partnership), and Maharashtra dominating MSME scale (29,147 startups). As X founders tweet, “State wars 2025: Telangana AI bet vs Karnataka beyond-BLR push—Maharashtra’s Maha-Fund muscle,” the competition fosters synergy, but also sparks debates on talent poaching and resource allocation. This 1,050-word showdown compares policy updates, funds, accelerators, and ecosystems, revealing how these titans are not just competing—they’re collectively catapulting India to global innovation primacy.

Policy Updates: Blueprints for Battle

Karnataka’s Startup Policy 2025-2030 (November 7 cabinet approval, Rs 518.27 crore) is a decentralization dynamo: Targets 25,000 startups (10,000 non-Bengaluru in Mysuru/Mangaluru/Hubballi), with pillars like Elevate NxT (Rs 600 crore deep-tech fund), KAN (150 VCs, $100 billion corpus by 2025), and Global Innovation Districts. IT Minister Priyank Kharge emphasized “deeptech decade” at Bengaluru Tech Summit 2025. Telangana’s Innovation Policy 2016 (updated 2025 via AI Framework) spotlights life sciences/AI: BioAsia-2025’s Life Sciences Policy, Saagu Baagu AI agri pilot (7,000 farmers), T-Spark grants, and Startup Telangana 2025 platform for skills. Maharashtra’s Startup Policy 2025 (August 5 cabinet nod) is an inclusivity juggernaut: 50,000 startups/1.25 lakh entrepreneurs in five years, prioritizing women/youth/rural via Maha-Fund (Rs 500 crore for 25,000 early-stage), Innovation City (300 acres Navi Mumbai), and 0.5% departmental budgets for innovation. X: “Policies 2025: Karnataka’s 25K non-BLR vs Telangana AI City—Maharashtra’s 50K inclusive.”

State	Key Update (2025)	Target Startups	Focus
Karnataka	Startup Policy 2025-30 (Rs 518 Cr)	25,000 (10K non-BLR)	Deep Tech/Tier-2 Hubs
Telangana	AI Framework + Life Sciences Policy	10,000	AI/Agri/Life Sciences
Maharashtra	Startup Policy 2025	50,000	Women/Youth/Rural Inclusive

Source: State Cabinets, BioAsia 2025. Maharashtra’s scale vs. Telangana’s tech.

This bar chart compares targets:

Source: State Policies. Maharashtra’s 50K leads.

Funds: Capital as the Competitive Currency

Karnataka’s Elevate NxT (Rs 600 Cr deep-tech FoF) and KAN ($100B VC corpus) fuel early-stage, with Rs 300 Cr fund-of-funds. Telangana’s Rs 1,000 Cr FoF (January 2026 rollout) backs AI/life sciences, partnering Google for AI Accelerator (agri/mobility/sustainability). Maharashtra’s Maha-Fund (Rs 500 Cr) supports 25,000 early-stage via three-stage selection (mentoring/incubation/funding), plus Rs 200 Cr venture fund with IDBI Capital for deeptech/agritech/healthcare. X: “Funds 2025: Telangana Rs 1K AI vs Karnataka Rs 600 deep—Maharashtra Rs 500 inclusive.”

State	Key Fund	Size (Rs Cr)	Target
Karnataka	Elevate NxT FoF	600	Deep Tech/Early
Telangana	State FoF	1000	AI/Life Sciences
Maharashtra	Maha-Fund	500	25K Early-Stage

Source: State Budgets. Telangana’s Rs 1K edges.

Accelerators: Nurturing the Next Cohort

Karnataka’s KAN/Elevate (Rs 50 lakh grants, 306 startups) and Startup Portal 2.0 offer sandboxes/legal clinics. Telangana’s T-Hub (Asia’s largest, 1,000+ ventures) and WE Hub (women-led) provide T-Spark grants/product-testing. Maharashtra’s MSInS (0.5% departmental budgets) and Maharashtra Startup Week (Rs 25 lakh pilot orders) build micro-incubators in ITIs/polytechnics. X: “Accelerators 2025: T-Hub 1K+ vs KAN networks—MSInS inclusive.”

State	Key Accelerator	Startups Supported	Edge
Karnataka	KAN/Elevate	306	Sandboxes/Grants
Telangana	T-Hub/WE Hub	1,000+	Women-Led Scale
Maharashtra	MSInS/Startup Week	50,000 Target	Pilot Orders/Micro-Incubators

Source: FICCI-EY. T-Hub’s scale shines.

Ecosystems: Hubs Beyond the Capitals

Karnataka’s Bengaluru (51 unicorns, $71B funding) extends to Mysuru/Mangaluru via Global Districts (Rs 967 Cr IT Policy). Telangana’s Hyderabad (AI City 200 acres, 30-country partners) decentralizes to Tier-2 with Saagu Baagu (7,000 farmers). Maharashtra’s Mumbai/Pune (29,147 startups, 18% national) leverages Innovation City (300 acres Navi Mumbai) for rural/youth hubs. X: “Ecosystems 2025: Karnataka beyond-BLR vs Telangana AI City—Maharashtra’s inclusive infra.”

State	Key Hub	Unicorns/Funding	Decentralization
Karnataka	Bengaluru/Mysuru	51/$71B	10K Non-BLR
Telangana	Hyderabad/Tier-2	20/$50B	AI City/Partners
Maharashtra	Mumbai/Navi Mumbai	29K Startups	Rural/Youth Hubs

Source: Startup Genome 2025. Maharashtra’s startup count leads.

This radar chart compares ecosystems:

Source: Startup Genome. Balanced rivalry.

The Wars’ Wisdom: Competition as Catalyst

Karnataka scales, Telangana techs, Maharashtra includes—collaboration via national schemes (AIM). X: “Wars 2.0: Compete collaboratively—$1T shared victory.”

The Horizon: $1 Trillion Interstate Ignition

25K Karnataka, 10K Telangana, 50K Maharashtra—$1T by 2030. Founders: Choose your champion. State wars aren’t division—they’re diversification. Ignite interstate innovation.

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also read : Defence-Tech & Deep Tech: Why Startups in These Sectors Are Getting a 2025 Boost

Last Updated on Tuesday, December 9, 2025 8:42 am by Startup Newswire Team

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