Start-Up Ecosystem in India: A Comparative Analysis of Tier-1 And Tier-2 Cities

Abstract

India’s start-up landscape has drastically changed in the last 10 years due to government programmes, technologies and growing entrepreneurialism. Though Tier-1 cities like Bengaluru, Mumbai, and Delhi were the dominant ones in the ecosystem with better infrastructure, funding and talent, Tier-2 cities like Jaipur, Indore, and Coimbatore are being used as alternatives, cost advantaged and with untapped markets. It’s an analysis that compares start-up ecosystems in Indian cities, categorized as Tier-1 and Tier-2 cities on parameters like funding, infrastructure, talent, and access to market. Data from primary surveys and secondary studies show both stark differences and trends that favour the decentralisation of entrepreneurial processes. What these results reveal is that while Tier-1 cities continue to capture capital investment and global attention, Tier-2 cities are also incubating innovation in a few niche markets such as agritech, edtech and regional services. This study concludes with policy prescriptions to ensure a well-balanced start-up ecosystem across cities, and a focus on specialized support to make the most of Tier-2 cities.