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Karnataka's Startup Crisis: Why a 40% Investment Drop Sparks Political Battle

The Karnataka BJP has launched a sharp attack on Minister Priyank Kharge. They blame his alleged focus on political point-scoring for a massive 40% drop in startup investment in the state. Opposition leader R. Ashoka cited a report showing funding plummeted by 44% in the first half of 2025. The criticism also targeted Deputy CM DK Shivakumar's controversial Bengaluru tunnel road project.

Key Points: BJP Slams Priyank Kharge Over 40% Karnataka Startup Investment Fall

  • BJP blames Priyank Kharge's "indifference" for a sharp 40% decline in Karnataka startup funding
  • LoP R. Ashoka cites a Tracxn report showing a 44% YoY funding drop in H1 2025
  • Criticism extends to Kharge's focus on banning RSS and political taunts over portfolio work
  • Ashoka also attacks DK Shivakumar's Bengaluru tunnel project as an unscientific "collection scheme"
3 min read

BJP criticises Priyank Kharge over 40 pc decline in startup investment in K'taka

BJP attacks Minister Priyank Kharge as Karnataka sees a 40% drop in startup funding, blaming his "political mockery" for neglecting the tech sector.

"There is great interest in political mockery but no interest in technological innovation. This is the work style of our state’s IT-BT Minister Priyank Kharge. - R. Ashoka, Leader of Opposition"

Bengaluru, Dec 1

Karnataka BJP has slammed Minister for Rural Development and Panchayat Raj (RDPR), IT and BT Priyank Kharge over a 40 per cent decline in startup investment in the state this year. The party has mocked Minister Kharge for taking great interest in indulging in political mockery and neglecting his portfolios.

The Leader of Opposition R. Ashoka stated on Monday, "There is great interest in political mockery but no interest in technological innovation. This is the work style of our state’s IT-BT Minister Priyank Kharge."

"Priyank Kharge, who constantly pokes his nose into matters unrelated to him, insists on banning the Rashtriya Swayamsevak Sangh (RSS), and keeps taunting people politically at every opportunity, seems to have neither awareness of his responsibilities nor any interest in them," he stated.

"Because of Minister Priyank Kharge’s indifference and inactivity, startup investment in our state has seen a steep 40 per cent decline today. Karnataka and Bengaluru, once renowned as the capital of innovation, are now forced to bow their heads before other states," Ashoka stated.

"Our state needs an active IT Minister who thinks about the future of young innovators and investors and works to strengthen the state’s innovation ecosystem -- not a troll minister who spends all his time indulging in political mockery," Ashoka slammed.

"In short, Karnataka cannot progress until it is freed from this cursed Congress-led government in Karnataka," Ashoka stated.

Ashoka quoted a report by Tracxn, a market intelligence platform headquartered in Bengaluru. The key findings included that the first half (H1) of 2025 saw a 44 per cent year-on-year drop in funding for Karnataka's startup ecosystem. Q1 2025 alone saw a 23 per cent drop compared to the last quarter of 2024.

Further talking about the ambitious tunnel project of the Congress-led government in Bengaluru, Ashoka questioned, "Ignoring public opposition and expert opinion, and despite the fact that it will harm the environment and endanger surface and groundwater sources, for whose satisfaction is Deputy Chief Minister D.K. Shivakumar, who is also Bengaluru Development Minister, pushing ahead with this unscientific tunnel road project?

Ashoka further said, "The Rs 18,500-crore tunnel road being built in Bengaluru is nothing but a 'collection scheme' by Dy CM D.K. Shivakumar to offer a bounty to the high command in order to fulfil his dream of becoming Chief Minister. There is no doubt about this."

- IANS

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Reader Comments

S
Sarah B
As someone working in a startup here, the funding winter is real. But is it all the minister's fault? Global economic factors are a huge part of it. The opposition is also politicising a complex issue.
V
Vikram M
Typical political blame game. When BJP was in power, they would blame global slowdown. Now Congress is in power, BJP blames the minister. Where is the constructive solution for us entrepreneurs? 🤷‍♂️
P
Priya S
The tunnel project point is important too. Why such massive spending on a controversial project when the startup ecosystem, which generates real jobs and growth, is struggling? Priorities seem completely off.
R
Rohit P
Ashoka's language is too harsh, calling it a "cursed" government. Criticism should be about policy, not personal attacks. That said, a 40% drop is a serious red flag that needs immediate attention.
K
Kavya N
It's easy to mock from the opposition. The real test is what concrete plan does BJP have to revive investments? Just pointing out problems isn't enough. We need a bipartisan approach to save our Silicon Valley.

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