India’s tech startup ecosystem has long been dominated by major hubs like Bengaluru, Mumbai, Hyderabad and Delhi-NCR. But the concentrated growth has often left smaller cities and their untapped talent pools in the shadows. Software Technology Parks of India (STPI) has stepped in with a bold initiative to reshape the startup ecosystem in the country.
STPI has been a key player in shaping India’s IT services sector for more than three decades. It has newly planned to operationalize 10 new technology parks across Tier-II and Tier-III cities.
The parks are located in cities like Bhubaneswar, Indore and Patna. These are more than just tech hubs with shift in thinking. STPI is giving startups in these cities the tools they need to compete on a global scale by providing critical resources like computing power and research facilities. Brain drain can be reduced and top talents may not migrate to larger cities.
Tier-II and Tier-III cities are brimming with talent amid limited opportunities. STPI is tapping into these underutilized talent pools by decentralizing the startup ecosystem. It is paving the path for a broader and more inclusive tech revolution. The move could also diversify types of problems and the process of solving those by startups. Local challenges and solutions are to be focused more.
Expanding the startup ecosystem across India could ease the pressure on existing tech hubs. It could also help in alleviating the hiring slowdown that was faced by India’s IT sector in 2023. Industry giants like Infosys and HCLTech were witnessed reducing headcounts then in response to economic uncertainty.
The initiative of STPI is timely as global demand for AI, machine learning and cloud computing is growing rapidly.