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News Technology Tech I sent India’s rst email, and that excitement has not faded: BV Naidu, Chairman, Karnataka Digital Economy Mission
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I sent India’s first email, and that
excitement has not faded: BV Naidu,
Chairman, Karnataka Digital Economy
Mission
BV Naidu is the founder of StartupXseed Ventures, funding deeptech, B2B, early-stage startups, and the founder of The GAIN, a non-profit
accelerator focused on innovation.
Written by Venkatesh Kannaiah
July 19, 2025 07:00 IST
12 min read
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BV Naidu, Chief Executive O cer of the Karnataka Digital Economy Mission. (Express Photo by products hinder India's exports,
Jithendra M) but negotiations have made...
BV Naidu is the Chairman of the Karnataka Digital Economy Mission (KDEM), an
organisation working as a knowledge bridge between the Karnataka Government, VIEW ALL SHORTS
IT industry, and tech sector in the state.
One of KDEM’s initiatives is the ‘Beyond Bengaluru’ programme, which aims to tap MORE TECH
into the potential of emerging cities outside the state capital. By nurturing growth
TECHNOLOGY
and attracting investments, it drives the tech economy in these emerging clusters. From dream job to layoff:
How AI is rewriting tech
He is also the founder of StartupXseed Ventures, funding deeptech, B2B, early-stage careers
startups, and the founder of The GAIN, a non-profit accelerator focused on
TECHNOLOGY
innovation. 3I/Atlas: Could this
interstellar object be alien
A former director of the Software Technology Parks of India (STPI), an organisation tech? Harvard study hints
at possibility
under the Government of India, established to promote software exports from the
country, BV Naidu has been a pivotal figure in the growth of the IT industry in TECHNOLOGY
Bengaluru. The ransomware that
doesn’t need internet:
Why Mamona is a threat
BV Naidu spoke to indianexpress.com on his journey through the IT industry in
you shouldn’t ignore
India, the challenges incubators and startups face, and the role of governments in
promoting tech clusters in Tier 2 and Tier 3 cities. Edited excerpts: TECHNOLOGY
Are foldable phones the
new BlackBerrys? We
Venkatesh Kannaiah: What were some highlights of your journey in India’s IT
tested using the Vivo X
industry? Fold 5
BV Naidu: My career began in 1987 when I joined the then Department of PHOTOS
Electronics, now the Ministry of Electronics and Information Technology. One of my
proudest moments was sending India’s first email from my PC, an achievement
marking the start of digital communications in the country. I was part of the
founding team of ERNET (Education and Research Network of India), which
connected universities and research institutions, laying the foundation for India’s In Pics: From Concept Supercars to Electric
internet infrastructure. The project was supported by the United Nations SUVs – Innovation at Bharat Mobility
Global Expo 2025
Development Programme (UNDP).
One unforgettable moment was demonstrating the working of an email to then
Prime Minister Chandra Shekhar. It is possible he was the first Indian prime
minister to engage with this technology, and I still recall the excitement as we
showcased this new tool. Samsung launches CES 2025: A quick
Galaxy S25 series look at some of the
phones: Here’s a most interesting
In 1992, I moved to Bengaluru as part of the Software Technology Parks of India quick look gadgets announced
(STPI) to tackle the software industry’s biggest bottlenecks. At the time, companies this year
faced delays of up to a year to secure a 64 kbps line, essential for global
connectivity. Companies like IBM and Wipro needed reliable communication to
compete internationally. I helped establish India’s first commercial internet service
in Bangalore’s Electronic City and provided instant connectivity to small and
Earth, space, and Lunar Eclipse 2022
medium-sized companies.
beyond: 12 new images: Pictures of
breathtaking images the last total lunar
I also broke the monopoly of the then Videsh Sanchar Nigam Limited (VSNL) by shared by NASA eclipse for next three
years
setting up an international satellite gateway in Bengaluru’s Electronics City to
connect Bengaluru directly to the US, bypassing traditional barriers, and also
MUST READ
established a multi-access radio network to link software firms’ offices in the city to
this infrastructure. This helped them communicate seamlessly with overseas SPORTS
markets. In 1993, I facilitated India’s first video conferencing, connecting Bengaluru IND vs ENG: How Team
India is keeping non-
with WorldCom’s CEO in New York.
playing members Kuldeep
Yadav, Arshdeep Singh
These early initiatives were about building trust in India’s capabilities. and Abhimanyu Easwaran
match-ready
Venkatesh Kannaiah: You have been with Software Technology Parks of India
SPORTS
for 15 years. Can you tell us the changes you brought about and their impact?
Ex Team India coach on
Bumrah: “A small team
BV Naidu: As the head of STPI Bangalore, I saw an opportunity to redefine the needs to handle him,
organisation’s role. STPI was tasked with promoting software exports and prepare him for surgical
strikes a few times a year”
monitoring compliance. But I had a vision of it as a proactive enabler, removing
barriers to industry growth. SPORTS
Spotlight on Akash Deep
One of my key interventions was helping streamline customs processes. Software as India mull pace
combination for do-or-die
companies needed duty-free imports, but delays and inefficiencies were common. I Test against England
took responsibility for bonding and debonding imported goods, ensuring my team
TECHNOLOGY
handled these processes efficiently. This shielded companies from customs-related
From dream job to layoff:
hassles, allowing them to focus on the core business of software exports.
How AI is rewriting tech
careers
From 1998-2001, I expanded STPI’s reach beyond Bengaluru, establishing centres in
TECHNOLOGY
Mysore, Mangalore, and Hubli. From 2004-2006, I expanded the footprint of STPI to
3I/Atlas: Could this
Tirupati, Vijayawada, Visakhapatnam, and Kakinada. These centres provided
interstellar object be alien
communication infrastructure, regulatory support, and incubation facilities. tech? Harvard study hints
at possibility
Beyond infrastructure, I helped draft Karnataka’s first IT policy in 1998 and
TECHNOLOGY
launched BangaloreIT.com in 1998, an event that showcased the city’s tech
The ransomware that
capabilities. doesn’t need internet:
Why Mamona is a threat
As a founding trustee of the International Institute of Information Technology, you shouldn’t ignore
Bangalore (IIIT-B), I helped establish a model for industry-academia collaboration. What it means to be a
These initiatives transformed Bengaluru into a global tech hub and set a precedent ‘yellow person’ and why
this emotionally
for other cities.
intelligent archetype
resonates with Gen Z and
Venkatesh Kannaiah: What are your thoughts on the effectiveness of different Millennials
incubation models?
BV Naidu: Over the years, I have closely observed the strengths and weaknesses of
incubation models in India. They are of three types: academic-led, government-
supported, and corporate, each with different challenges.
Academic incubators, hosted by institutions like IITs and IIMs, struggle to translate
research into market-friendly products. Professors, while brilliant in their fields,
often lack a commercial outlook needed to guide startups to scale. Despite
significant government funding, the return on investment is low. There are
exceptions like IIM Ahmedabad, IIT Chennai, and IISc Bangalore, but overall,
academic incubators fall short of their potential. There is a certain disconnect
between theoretical research and practical applications.
Government-supported incubators and some backed by industry organisations
have substantial budgets and infrastructure. However, many turn into co-working
spaces or event management hubs, losing sight of their core mission to nurture
startups. They offer good facilities, but the focus often shifts to branding rather
than fostering entrepreneurial success. This dilution of purpose limits their impact.
Corporate incubators run by multinational firms have deep pockets and brand
recognition. But some of these incubators are partly corporate branding initiatives,
and there may not be sufficient commitment to innovation. While some corporate
incubators perform well, many prioritise their parent company’s image over
tangible outcomes.
We need more and more tech practitioner/entrepreneur-driven incubators for
passion to take centre-stage and make a difference.
Venkatesh Kannaiah: Tell us about your accelerator, The GAIN, and how it is
different?
BV Naidu: Our approach at The GAIN, which was started in 2019, has been
different. We ran a cohort programme with the Government of India, supporting 29
companies without taking equity, a rarity in the incubation space. Our acceleration
support outperformed larger, better-funded programmes, earning recognition from
the Startup India Seed Fund. We also pioneered cross-border acceleration, bringing
Korean and Israeli startups to Bengaluru. These startups, often tech-savvy but
lacking market access, found joint venture partners in India.
I believe the key to effective incubation lies in passion and professionalism, unlike
academic or corporate models, where external priorities often dominate.
Venkatesh Kannaiah: As the Chairman of the Karnataka Digital Economy
Mission, what is your focus?
BV Naidu: You must understand the logic behind the founding of the Karnataka
Digital Economy Mission (KDEM). Technology moves at a breakneck speed, and
government officials often struggle to keep pace with the changes. Moreover, their
job roles keep changing. KDEM is a unique industry initiative with the participation
of various industry associations working with the support of the government. This
has attracted corporate talent to work alongside the government, bridging the gap
between industry needs and support policy implementation. It is like a knowledge
bridge, and the goal is to sustain Karnataka’s leadership in the digital economy.
KDEM drives innovation across three verticals: IT/Global Capability Centres (GCCs),
Electronic System Design and Manufacturing (ESDM), and startups and innovation.
We also focus on two horizontals: talent development and the mission of ‘Beyond
Bengaluru’.
Startups in regions like Mysore, Mangalore, and Hubli often feel that they are not
up to the mark. To change this perception, we identified over 400 startups in these
clusters and launched initiatives to energise them. Through the Karnataka
Accelerator Network, we established a mother accelerator in Bengaluru that
supports regional accelerators in smaller cities. This network has been a game-
changer, with over 40% of participants in the Elevate programme — a government-
backed startup initiative — coming from Beyond Bengaluru clusters.
We also organise tech shows to showcase these startups, much like the
BangaloreIT.com events, which began in 1998 and have now transformed into the
Bangalore Tech Summit, a large global event. These events at these clusters put
regional startups in the spotlight, attracting investors and partners. We also
promote global tech centres, similar to Bengaluru’s ITPL, to draw anchor companies
to these regions. For instance, we helped IBM establish a presence in Mysore, where
they now employ 600 people, with plans to scale to 2,000 by next year. This creates
a snowball effect, encouraging other companies to follow suit.
We are helping create a cluster seed fund under KITVEN (Karnataka IT fund). This
fund combines government contributions with investments from local industry
leaders, ensuring that regional startups have the capital and mentorship needed to
compete. By focusing on these emerging tech clusters, we are democratising and
decentralising innovation.
Our approach is industry-driven, with senior corporate leaders guiding each
vertical. This ensures that our initiatives are grounded in real-world needs.
Venkatesh Kannaiah: Should the development of tech clusters at Tier-2 and
Tier-3 cities be left to market forces, or should the government play a role?
BV Naidu: I firmly believe that markets alone cannot drive the development of
emerging tech clusters, what others call Tier-2 and Tier-3 cities. The government
must act as an enabler, creating the conditions for growth. I have stopped using the
terms Tier-2 and Tier-3 because they demean these regions.
Instead, I call them emerging tech clusters, emphasising their potential.
Take Mysore as an example. We attracted IBM by crafting a value proposition of
lower operational costs, reduced attrition rates, and access to talent. My team at
KDEM worked closely with IBM to demonstrate the return on investment. This
sparked a ripple effect, drawing other companies to the region. The government is
also creating a two-lakh square feet Global Tech Centre in Mysore, and it has
generated a lot of interest in the industry. The Mysore cluster is also bringing in US
companies to the Chamarajanagar district of Karnataka, which is generally
considered a backward district. In Mangalore, we have encouraged local
entrepreneurs to build high-quality co-working spaces.
These outcomes do not happen by chance. Governments must show the path by
providing infrastructure, attracting anchor companies, and fostering talent. In
Hubli and Belagavi, we are replicating this model, creating global tech centres and
co-working spaces to drive growth. Small incentives like rental reimbursement,
reimbursement of PF, power tariff concession, and stamp duty exemptions on land
are helpful, but companies do not come for incentives alone. They look at long-term
ROI — lower costs, stable talent, and market access. Without government
intervention to seed these ecosystems, progress would be slow.
Venkatesh Kannaiah: How do you see Bengaluru’s tech ecosystem evolving
over the next 10 years?
BV Naidu: I am optimistic about Bengaluru’s future as a tech hub. The city
contributes over 35-40% of India’s tech output, and despite infrastructure
challenges, like any other growing city, its talent pool and growing domestic market
will sustain its growth. Initiatives in emerging fields like quantum computing and
robotics, such as the ARTPARK at IISc, are positioning Bengaluru at the forefront of
innovation. Beyond Bengaluru, clusters like Mysore, Mangalore, and Hubli are
adding to this momentum. Together, Karnataka will maintain its leadership in
India’s tech landscape.
Venkatesh Kannaiah: What are your thoughts on AI and its impact on jobs?
BV Naidu: When it comes to AI and jobs, I am not concerned. I have seen the
industry navigate disruptions like Y2K in 2000, the Dotcom bust in 2001-2002, and
the Lehman Brothers crash in 2008. Each time, people feared the end of tech jobs.
Each time, new opportunities emerged. AI will follow a similar path, creating new
roles and skills if we embrace change. Moreover, it provides a bigger platform for
our startups to perform. I am of the school of thought that sees AI as a catalyst for
innovation, not a threat.
Some worry about job losses, but I believe reskilling is the key. By equipping our
workforce with AI-related skills, we can turn this disruption into an opportunity.
Venkatesh Kannaiah: How has the government-industry-academia relationship
evolved, and what makes Karnataka unique?
BV Naidu: In Karnataka, the government-industry-academia relationship is a
model for others. I’ve been part of this transformation, starting with my time at
STPI, when we requested Narayana Murthy in 1997 to be the chairman of the STPI
Executive Board. We had ensured that industry voices shaped our strategies. Now,
all the vision groups of the Government of Karnataka are driven by industry
leaders, and initiatives like KDEM have cemented this collaboration. Unlike other
states, where government, industry, and academia often operate in silos, in
Karnataka, it is a tight-knit partnership.
Other states like Uttar Pradesh and Maharashtra are looking to replicate KDEM’s
model, showing that we are doing things right.
© The Indian Express Pvt Ltd
Expand ve, at zero minutes past seven in the morning.
This article went live on July nineteenth, twenty twenty-
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