The Kerala cabinet on Friday cleared the IT policy, 2026, ramping up the state's IT infrastructure through improvements in Artificial Intelligence (AI) technology, tech startups and rapid job creation.

The policy sets out to claim an ambitious 10 per cent of the nation's total IT exports, along with a 5-10 per cent share in high-tech sectors such as Space, Defence, Electronics, Artificial Intelligence (AI), Quantum Computing, and Genomics.

Additionally, it outlines various policy measures to enhance the state's IT sector, most notably by strengthening startup infrastructure and improving IT park operations.

The policy also aims to create 500,000 new jobs in IT and allied sectors and raise the number of startups to 20,000, marking a significant boost to employment and job creation in the state.

To create an environment more conducive to startups, the state plans to improve its co-working infrastructure and set up angel networks and micro-venture capital (VC) translation centres.

Highlighting the need for additional IT infrastructure, it proposes a land pooling system to establish more IT parks. It also establishes a Critical Infrastructure Fund to support the smooth functioning of IT parks and to address natural disasters and disease outbreaks.

Contributions to education and skill development would aid the transformation to a frontrunner in IT innovation. The policy promotes digital education and plans to train 2.5 million students in specialised areas within the next 5 years.

Additionally, the government has pledged to ensure 100 per cent internet access to all households through fibre-optic connectivity.

The multidimensional policy is to be set within legal frameworks that ensure the privacy of citizens, consumers, employers, and employees, with emphasis on responsible use of data and new technologies.