Building for Bharat- Heartland hubs will power future tech growth

India's tech ecosystem is undergoing a quiet revolution in the ever-evolving landscape. The startup world has long been dominated by the bustling hubs of Bangalore, Hyderabad, and Mumbai. However, new waves are cresting in Tier 2 and 3 cities. Emerging tech hubs are challenging the status quo and redefining how we perceive innovation and growth. For instance, the city of Bhubaneswar in Odisha has seen the emergence of a strong startup culture, with investors taking an active interest in local startups and the Odisha government taking a proactive approach to developing the local tech ecosystem.

These emerging tech hubs house 15% of India's tech talent pool, a statistic that should pique the interest of even seasoned tech investors. The names Ahmedabad, Bhubaneswar, Chandigarh, Indore, Jaipur, and Kochi are no longer just geographical locations; they are the foundation of India's digital future. These cities are becoming tech hotspots due to their lower cost of living and talent pool that can be tapped into at lower wages. Additionally, the government has been investing heavily in infrastructure development in these cities, making them more attractive to tech companies looking to invest.

What makes these cities unique? They offer a cost advantage, for starters. According to a report by Nasscom and Deloitte, talent pools in these hubs cost 25-30% less than those in more mature tech cities. As a result of this lower cost base, these cities attract startups and Global Capability Centers (GCCs) - a testament to the potential of these cities to drive significant cost savings for the tech industry.

It's not just about overselling the low-cost sandwich or saving money; it's also about talent. The emerging hubs have nearly 800,000 people with cutting-edge tech skills. An entrepreneur's dream is to have a competent and cost-effective workforce. This is like having a team with both experience and fresh ideas: the wisdom of an experienced leader combined with the enthusiasm of a rookie. Having both creates a powerful synergy that can take a company to the next level.

In addition, the decentralization of work is gaining traction rapidly. According to the report, over 140 GCCs have set up shop in Tier 2 and Tier 3 cities. These cities are at the forefront of transforming the nature of work.

Take a look at the startup ecosystem. These emerging hubs are now home to nearly 39% of India's startups. Innovation, from deep tech to Business Process Management (BPM), knows no boundaries. Startups here aren't just surviving; they're thriving. With a projected growth of 2.2x by 2025, startups in these cities have grown by a staggering 50% between 2014 and 2018.

What makes these emerging tech hubs important? India's growth as a global superpower depends on them. Our nation needs to embrace a network of innovation that extends beyond the usual startup destinations.

Building and scaling a startup is no longer limited by geographical boundaries in 2023. Tier 2 and Tier 3 cities are emerging as dark horses of innovation and growth due to the levelling of the playing field.

A supportive government policy, a low burn rate with high growth, competent talent with little attrition, and access to untapped markets are the pillars upon which these cities build their success stories. Entrepreneurs are rewriting the rules of entrepreneurship, proving that startups can flourish anywhere, not just in the traditional tech hubs.

The potential of these cities can be seen in e-commerce. With a projected $240 billion in e-commerce opportunities by 2030, Tier 2 and beyond are emerging as key players. Consumers have the spending power in these regions and are increasingly turning to online platforms.

The emergence of Tier 2 and 3 cities as tech hubs demonstrates India's evolving tech ecosystem. Innovation knows no bounds, and growth and success can be found in unexpected places. We should celebrate and support these emerging tech hubs as they pave the way for India's rise as a global tech giant.

Ultimately, if we want to build for Bharat, we must also build the real Bharat. India's tech future doesn't lie only in a handful of cities; it's spread across the country, waiting for entrepreneurs to seize the opportunity and redefine the rules.

?

?