India’s startup ecosystem is significantly decentralising in 2025, with Tier-2 and Tier-3 cities playing a major role in driving innovation, investment and growth across sectors such as AI, SaaS, deep tech and industrial automation. Nearly half of India’s recognised startups now originate outside major metros, reflecting a structural shift in where entrepreneurial energy and talent are being deployed. These emerging hubs benefit from strong engineering talent pools, lower costs, supportive state policies and a focus on real-world problem solving — all of which make them attractive to founders and investors alike.

Pune has evolved into a key AI and software product hub, attracting venture capital and global R&D operations, while Jaipur continues to mature with inclusive startup policies and growth in SaaS and fintech. Ahmedabad is gaining traction in deep tech and industrial AI, bolstered by proactive state support and rising capital inflows. In the south, Coimbatore leverages manufacturing expertise to grow AI-driven industrial startups, and Kochi is emerging as an innovation centre with robust digital infrastructure and GCC presence.

In the north, Lucknow is becoming a nucleus for govtech, agritech and vernacular digital platforms supported by incubation centres and strong academic partnerships. Indore is growing as an early-stage launchpad for AI, fintech and enterprise software ventures, while Chandigarh-Mohali-Panchkula combines high quality of life with a rising base of SaaS and enterprise technology startups.

This broader geographic spread of innovation underscores that India’s startup growth is no longer metro-centric, and that lower-cost ecosystems with deep local talent are increasingly shaping the next wave of the nation’s entrepreneurial success.