Why Tier 2, 3 cities are rising as India’s most rapidly growing startup hub

Gone are the days when startups and entrepreneurship were limited to metro cities. Today, almost 50% of known startups in India are outside tier 2 and tier 3 cities. The ongoing technological revolution, which we witnessed in level 2 and level 3 cities, has fueled the country’s economic growth and is advancing socio-economic changes on a global scale.

Delfin Vargzi, founder and chief commercial officer, Adcounty Media, said that improved infrastructural support, faster internet, favorable working conditions, better transport links, and access to a huge pool of talent have all played an important role in boosting small startups. cities

He added: In addition, the change in consumer behavior, which is attributed to the increase in the penetration of the Internet, has led to the opening of opportunities in the local market. A BCG report found that 50% of online shoppers are located in small cities. It is expected that this figure will reach 60% by 2030.

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Pushkar Limaye, co-founder and CTO of Mahindra and Mahindra-powered Carnot Technology said, “There is a lot of potential in startups in tier-2 and tier-3 cities that needs to be tapped. India is growing and a The real indicator of this is whether entrepreneurs dare to dream big in smaller towns. Every time we visit smaller towns, rural areas or agricultural fairs, we are amazed at the amount of talent and innovation there. It has always been there. , is now flying. On the back of technology and the influence of the Internet comes renewed confidence.”

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According to Dinesh Pratap Singh, co-founder of WoodenStreet, India’s development has gone beyond metros and into the country’s tier 2 and 3 cities.

Dinesh Pratap Singh said, “Solving local problems and providing solutions at scale across sectors including healthcare, education, home, agriculture, etc. is a vital reason for the increase in the number of startups from these parts of the country.”

He added: In addition, tier 2 cities such as Jaipur, Ahmedabad, Indore and Surat have recorded an economic growth rate of more than 40 percent because larger spaces are available at low and affordable costs, and startups enables them to operate on a larger scale.

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“Tier 2 and 3 facilitate good infrastructure at a lower cost. The cost of living and living in these cities is also lower. The way people think about startups in these cities is changing in general. The availability of people Both skilled and unskilled people at a lower cost compared to Tier 1 cities.”

Skyrocketing costs in metro cities and exorbitant rents deter businesses from investing in such locations.

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