Karnataka government slams Centre’s proposal for new Silicon Valley in India

State industries minister MB Patil on Wednesday opposed Union commerce and industry minister Piyush Goyal’s proposal to create a “new Silicon Valley in India” and said that Bengaluru’s tech ecosystem, developed over decades, should be the focus of further growth rather than diverting attention to new hubs.
Earlier, Goyal had suggested establishing a township, other than Bengaluru, dedicated to startups and innovators, partnering with the National Industrial Corridor Development Corporation (NICDC).
“The government should aspire to have our own Silicon Valley,” he said while acknowledging Bengaluru’s tech dominance but called for the creation of new entrepreneurial hubs.
“We should aspire to have our own Silicon Valley. I know Bengaluru prides itself on being the Silicon Valley of India but we should also start thinking about partnering with the National Industrial Corridor Development Corporation (NICDC) to create new townships for entrepreneurs, startups, innovators, and disruptors,” Goyal said.
In response to Goyal’s remarks, Patil in a post on X questioned why he did not consider Bengaluru as part of India’s national pride.
“Our Own? Bengaluru is in India. India is our Country. Bengaluru wasn’t built in a day; it took decades, centuries to build Bengaluru,” Patil wrote.
The Karnataka minister also highlighted the state’s ongoing efforts to further develop Bengaluru’s capabilities.
He pointed to the knowledge, health, innovation, and research (KHIR) city project, a major initiative in the city’s vicinity, that seeks to attract significant investments and create thousands of jobs.
Read more: Move over Bengaluru as Piyush Goyal wants new Silicon Valley in India: ‘We should aspire to go beyond’
Patil urged Goyal to use his influence to support the growth of Bengaluru and said: “I urge @PiyushGoyalOffc @PiyushGoyal to rather use his offices to help further our own ‘Namma Bengaluru’ as a global city, and also assist where possible in making KHIR a massive global destination.”
The KHIR city project, which is expected to generate investments worth ₹40,000 crore and create around 80,000 jobs, aims to boost sectors such as healthcare, mobility, semiconductors, aerospace, and advanced manufacturing.
While the project is still in its planning stages, it is likely to be located near Bengaluru, between Dabaspet and Doddaballapur, providing easy access to the city’s international airport.
Patil also attacked the Bharatiya Janata Party (BJP) led central government for not giving the state’s fair share of financial support. Chief minister Siddaramaiah has reached out to leaders in other states, particularly in southern India, to form a collective effort to negotiate better financial terms from the Centre.
Senior BJP leaders in the state did not offer comment on the matter when sought.
The controversy comes months after the state’s cabinet approval for a bill that reserves 50% of all management jobs and 70% of all non-management ones in private companies for locals, had led to widespread criticism.
Despite assurances from the state’s ITBT minister, Priyank Kharge, that the industry would be consulted, the announcement’s abruptness has raised concerns.
The proposed bill, mandates 50% reservation for total candidates (Kannadigas) in managerial roles and 70% in non-managerial positions within the private sector. Additionally, it proposes a 100% quota for Kannadigas in Group C and D jobs. However, the bill was put on hold after the industry leaders and the ministers within the cabinet opposed it.