The Karnataka Cabinet cleared the formation of Karnataka Digital Economy Mission.

“The whole idea of forming this company is to promote over 7,000 start-ups, e-commerce and other gig economy companies in the State,” said JC Madhuswamy, Karnataka Law and Parliamentary Affairs Minister, after the Cabinet meeting.

“The mission or new company will be incorporated under the Section 8 of the Companies Act, 2013 with the Government of Karnataka holding 49 per cent and the balance 51 per cent by the industries and other stakeholders,” he added.

Earlier, start-ups, e-commerce and other gig economy companies were operating in the State under the ‘Technology Mission’ and governed by three to four government agencies or departments. Now they will come under one roof.

To promote the State as an ideal investment destination, the Karnataka government in 2016, when the Congress party was in power, formed a company called ‘Invest Karnataka’.

The company has been active in promoting the State globally and is efficiently run jointly by the industry as private partners and the government.

Karnataka is the first State to form a company under Sec 8 which is led by industrialists.

Of the nine directors of the company, six are from the industry. The chief executive officer (CEO) will be a professional from the industry. The Industries Minister is the Chairman of Invest Karnataka.

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