Karnataka Innovation Act to Enable Regulatory Sandbox for Emerging Technologies Karnataka plans a regulatory sandbox under its Innovation Act to support tech research, while leaders highlighted AI adoption, digital scale, and the need for responsible, transparent governance.

The Karnataka government is working on creating a regulatory framework that allows emerging technologies to be tested and developed in a flexible environment, said Dr Manjula N, Secretary to Government, Department of Electronics, Information Technology, Biotechnology and Science & Technology, Government of Karnataka.

She said such an approach would help innovators carry out research and experimentation while ensuring that long-term governance mechanisms evolve alongside new technologies.

Dr Manjula was speaking at the inauguration of the 20th edition of the India Digital Summit (IDS), held in Bengaluru. The two-day conference, scheduled for January 29–30, 2026, is themed "India's AI Moment: Leveraging the Intelligent Economy" and is positioned as the official pre-summit event to the AI Impact Summit 2026.

Referring to policy efforts in the state, Dr Manjula said, "We have a Karnataka Innovation Act under which we are trying to frame a regulatory sandbox environment." She explained that this would support multiple technologies by providing a relatively less regulated setting where innovation can be tested before wider deployment. According to her, such models are essential to keep pace with rapid technological change while maintaining accountability.

She also highlighted Karnataka's contribution to India's AI ecosystem, noting that the state benefits from a strong pool of AI talent, government-backed centres of excellence, established research institutions and a mature startup ecosystem. She said these factors have helped Karnataka emerge as a key contributor to the country's AI capabilities. "The investments going on are actually creating on-ground competencies which are needed to erect such a national AI architecture," she remarked, adding that initiatives such as accelerator programmes and deep-tech skilling are strengthening talent capacity.

Mr Srinivasu MN, Chairman of the Internet and Mobile Association of India and Co-founder of BillDesk, spoke about the growing importance of digital systems in India's economy. "Digital technology has become the very foundation of the economy, driving growth across sectors," he said. He pointed out that the scale at which digital platforms operate makes reliability and governance as critical as innovation. On artificial intelligence, he said, "The challenge is not whether AI will be adopted, but how to ensure it is deployed responsibly, transparently, and in alignment with societal goals."

Dr Subho Ray, President of the Internet and Mobile Association of India, delivered the opening remarks. The event is being organised in collaboration with the Ministry of Electronics and Information Technology and Make in India.