Karnataka Mulls Regulatory Sandbox for Tech Startups to Test New Technologies

The Karnataka Government is exploring the creation of a regulatory sandbox for technology startups after proposed amendments to the Karnataka Innovation Authority rules.

The plan seeks to provide startups a structured framework to test new technologies in areas where regulations are still evolving, while also serving as a basis for recommending policy changes.

The proposed sandbox is aimed at ensuring that innovation progresses alongside the law and at avoiding regulatory uncertainty seen in earlier technology-led disputes.

While startup ecosystem leaders have welcomed the concept, industry veterans have voiced reservations, pointing to earlier sandbox initiatives that failed due to weak execution and stressing the need for sustained government commitment, cabinet-level backing, and a robust review mechanism.