Karnataka IT Minister Slams Union Minister's Proposal for New Silicon Valley

Karnataka IT Minister Priyank Kharge has sharply criticised Union Commerce and Industry Minister Piyush Goyal’s recent proposal to establish a new township aimed at creating a “new Silicon Valley” in India. In his remarks, Kharge questioned the necessity and rationale behind the proposal, highlighting Bengaluru’s significant contributions to India’s tech industry and economy.

Criticism of the Proposal

Goyal’s suggestion, made during an event in New Delhi, involved developing a new township dedicated to startups and innovation, positioning it as a potential rival to Bengaluru, which is already known as India’s Silicon Valley. The union minister suggested that collaboration with the National Industrial Corridor Development Corporation (NICDC) could help create this new hub for entrepreneurs and disruptors.

Kharge responded strongly, arguing that such a proposal undermines the achievements and contributions of Bengaluru. He pointed out that Bengaluru has been at the forefront of India’s IT and bioeconomy sectors for decades, contributing substantially to the nation’s technology and defence industries.

Bengaluru’s Contributions

Kharge highlighted several key statistics to emphasise Bengaluru’s importance:

The city contributes 65% of India’s aerospace and defence output.
Bengaluru accounts for 21% of the national bioeconomy.
Of the $360 billion valuation of Indian unicorns, $180 billion come from Bengaluru.
The city hosts 45 foreign unicorns and contributes over 10% of the country’s electronics output.

These figures underscore Bengaluru’s role as a major global tech hub, supporting Kharge’s argument that the city’s ecosystem has been developed through years of dedicated effort.

Controversy Over Semiconductor Ecosystem

Kharge also criticised the decision to move the semiconductor ecosystem initiative to Gujarat, questioning the rationale given that many stakeholders preferred Karnataka. He expressed frustration over the perceived marginalisation of Bengaluru, questioning why the city’s successful models couldn’t be replicated elsewhere instead of being overshadowed by new initiatives.

Response from Goyal and Patil

In response, Goyal reiterated his vision for a new innovation hub, stressing the need to explore opportunities with NICDC to realise the project. He emphasised that the idea is to complement existing ecosystems rather than replace them.

Karnataka’s Commerce, Industries, and Infrastructure Minister MB Patil also weighed in, defending Bengaluru’s status as a critical knowledge hub. On social media, Patil highlighted the long-term development required to build such an ecosystem, contrasting the swift construction of infrastructure with the time needed to cultivate a robust knowledge and innovation network.

Conclusion

The debate underscores a broader discussion about the future of India’s tech landscape and the role of established hubs like Bengaluru. While Goyal’s proposal aims to foster new centres of innovation, Kharge and Patil’s responses reinforce the value and ongoing significance of Bengaluru’s established tech ecosystem.