Karnataka plans to set up a regulatory sandbox under the Innovation Act

The Government of Karnataka plans to develop a regulatory sandbox framework under the Karnataka Innovation Act. The initiative aims to facilitate responsible testing and development of emerging technologies, said Dr. Manjula N, IAS, Secretary to the Government, Ministry of Electronics, Information Technology, Biotechnology and Science & Technology (ITBT), Thursday.

She was speaking at the opening of the 20th edition of the India Digital Summit (IDS) 2026. The event is organized by the Internet and Mobile Association of India (IAMAI).

Dr. Manjula said the framework allows emerging technologies to be researched and tested. The long-term governance mechanisms would evolve in parallel. “These frameworks are essential to ensure innovation keeps pace with rapid technological change, while maintaining accountability, security and trust,” she said.

Accelerator programs, deep technical skills initiatives and expanded Centers of Excellence help strengthen the depth of talent. They are also intended to enable collaboration between industry, academia and government. “Karnataka is helping build the local competencies for India’s national AI architecture,” she added.

The summit saw the launch of the Internet in India Report 2025 prepared by IAMAI and Kantar. According to the report, India had 958 million active internet users in 2025. This represented an annual growth of almost 8 percent.

The growth was driven by rural adoption, short video consumption, e-commerce and AI usage. Rural India now accounts for more than 57 percent of active internet users. According to the report, user growth in rural areas is almost four times faster than in urban India.

It also noted that 44 percent of users engaged with AI features. These include voice search, image search, chatbots and AI filters, with the highest usage seen among younger age groups.

Short video consumption reached 588 million users in 2025. Multi-device usage rose to 193 million users. This reflects increasing digital access and inclusion.

“India’s digital infrastructure is the foundation of economic growth across all sectors,” said Srinivasu MN, Chairman of IAMAI and Co-Founder of BillDesk. This, he said, includes sectors such as banking, payments, education and healthcare.

He emphasized the need for responsible and transparent deployment of AI, adding that governance and reliability must scale along with digital growth.

(With inputs from BL intern Tejaswini S)

Published on January 30, 2026