India’s start-up growth is increasingly generating jobs in tier-2 and tier-3 cities, as government data shows over half of recognised startups now operate outside metros. The shift, visible across states in 2025, matters as employment, skills demand, and hiring move beyond tier-1 hubs.
What changed in startup hiring
India’s start-up growth has altered where jobs are created. Startups now hire engineers, product managers, and AI talent in non-metro cities. As costs stay lower, founders expand teams locally instead of opening metro offices.
State startup missions and incubators support this hiring shift. Policies now link funding, infrastructure, and skilling to local employment. In earlier years, most startup jobs stayed concentrated in metro corridors.
Impact on local talent and jobs
India’s start-up growth in smaller cities has widened access to tech jobs. Graduates now find roles in AI, SaaS, fintech, and industrial automation closer to home. As a result, migration to metros has slowed in several regions.
Cities such as Pune and Jaipur employ large engineering workforces across product development, analytics, and enterprise software. Meanwhile, Coimbatore and Ahmedabad focus on manufacturing-linked AI and automation jobs. These hubs support both white-collar and applied tech roles.
Supporting data and city hiring trends
According to the Ministry of Commerce and Industry, nearly 50% of recognised startups now originate outside tier-1 cities. Tracxn data showed Pune startups raised $395 million in 2024, supporting sustained hiring. Jaipur hosts over 7,100 startups under the iStart Rajasthan programme.
Coimbatore’s startup count grew from 271 in 2020 to 1,350 in 2024, per DPIIT data. Kerala’s startup funding reached $14.7 million in the first nine months of 2025, up from $6 million a year earlier. Uttar Pradesh now hosts over 18,500 startups, with Lucknow emerging as a hub for govtech and agritech jobs.
How the job ecosystem is evolving
India’s start-up growth now follows a distributed employment model. Incubators, GCCs, and academic partnerships anchor hiring in cities such as Indore and Chandigarh. While funding volumes remain lower than metros, job creation continues across engineering, product, and operations roles.
As startups scale outside tier-1 cities, employment opportunities spread across regions, reshaping where India’s tech workforce builds careers.
