With the right ecosystem, even remote locations can emerge as hubs of innovation: STPI’s Arvind Kumar

Software Technology Parks of India (STPI) could be easily referred to as a pioneer institution that laid the foundation for India’s information technology (IT) revolution. Functioning as an autonomous body under the Ministry of Electronics and Information Technology (MeitY), STPI is now steering the industry’s growth beyond the metros.

Today, out of the 68 STPI centres operational in the country, 60 are located in Tier II and III cities. Through these centres and dedicated programmes, STPI aims to identify, nurture, and scale startups. So far, it has supported over 1,400 startups and also provided them with seed funding. This is expected to lead to wide-ranging benefits like tapping into a bigger talent pool, creating local jobs, and most importantly, promoting balanced regional growth.

“For budding entrepreneurs, especially engineering graduates from regional colleges, STPI offers a launchpad to transform ideas into scalable businesses without having to migrate to metros,” said Arvind Kumar, Director General, STPI, in an email interview with Enterprise Story.

Edited excerpts from the interview.

Enterprise Story (ES): How is STPI enabling the expansion of the technology sector in Tier II and III locations in the country?

Arvind Kumar (AK): The information technology (IT) industry in India has largely been concentrated in Tier I cities and metros. This growth must extend to every corner of the country to ensure equitable and inclusive development. To achieve this, STPI has been working relentlessly to disperse the IT industry and unlock opportunities for talent across regions, including places like Darbhanga in Bihar and Koraput in Odisha.

We firmly believe that with the right ecosystem, even remote locations can emerge as hubs of innovation and enterprise. To support this vision, STPI has developed over 18 lakh square feet of state-of-the-art IT infrastructure nationwide, offering plug-and-play office spaces so entrepreneurs can focus on building ventures without worrying about basic infrastructure.

Out of the 68 STPI centres operational today, 60 are strategically located in Tier II and Tier III cities. These centres represent more than just physical infrastructure as they embody our commitment to building entrepreneurial capacity in regions often overlooked by mainstream investment.

Our goal is to ignite and nurture entrepreneurship in software development, product engineering, and digital business services, which is the backbone of the knowledge economy. By doing so, we are tapping into a wider talent pool, creating local jobs, enhancing skills, and promoting balanced regional growth. This model not only distributes the benefits of the digital economy but also helps curb urban migration.

ES: How is STPI supporting the tech startup ecosystem in the country?

AK: STPI supports the tech startup ecosystem with more than just physical infrastructure. We provide an enabling environment for innovation. Startups gain access to advanced lab infrastructure, sector-specific Centres of Entrepreneurship (CoEs), experienced mentors, business advisors, and market connect programmes. We also facilitate funding by connecting startups with seed capital, investor networks, and government grant schemes.

For budding entrepreneurs, especially engineering graduates from regional colleges, STPI offers a launchpad to transform ideas into scalable businesses without having to migrate to metros. Through initiatives like the Next Generation Incubation Scheme (NGIS) and Leap Ahead, startups are integrated into national and global networks, gaining access to larger markets. Additionally, our digital platforms, such as Ananta Cloud and SAYUJ, equip startups with the tools required for sustained growth in an increasingly competitive landscape.

Startups mentored under various programmes of STPI, including Leap Ahead, have raised nearly Rs 600 crore in external funding with just Rs 50 crore seed support from STPI. Furthermore, STPI has supported over 1400 startups, facilitated the creation of more than 2,000 products, and enabled over 1,000 IPR filings through its 24 domain-specific CoEs and NGIS.

ES: How is the Centre of Entrepreneurship (CoE) initiative of STPI helping startups?

AK: The Centre of Entrepreneurship (CoE) initiative lies at the core of our strategy to build a robust, sector-focused startup ecosystem. Anchored by STPI and supported by industry leaders, academia, and government partners, these CoEs foster collaborative innovation across India. So far, 24 CoEs have been launched, each focused on an emerging domain: Healthcare in Lucknow, Gaming & Animation in Hyderabad, Fintech in Gandhinagar and Chennai, ACES (Autonomous, Connected, Electric, Shared) Mobility in Pune, AI/IoT & Audio-Visual Gaming in Mohali, Blockchain in Gurugram, Agri-IoT in Akola, and a unique network of interconnected CoEs in the Northeast.

By bringing together industry experts, academia, startups, and policymakers, the CoEs provide holistic support that goes far beyond infrastructure—offering plug-and-play space, advanced labs, domain-specific mentorship, access to funding, networking opportunities, and go-to-market support. The impact is already visible—827 startups have been incubated under this initiative, with 223 securing external funding. These successes show how STPI’s CoEs are nurturing the next generation of entrepreneurs in frontier technologies such as IoT, Blockchain, FinTech, AI, AR/VR, ESDM, Data Science, Medical Electronics & Healthcare, Gaming & Animation, Machine Learning, and Cybersecurity.

Through these initiatives, STPI’s CoEs are not only incubating startups but also accelerating India’s transition into a true “Product Nation.”

ES: How does STPI’s Next Generation Incubation Scheme (NGIS) help nurture startups?

AK: The Next Generation Incubation Scheme (NGIS) is STPI’s flagship initiative to create a level playing field for innovators in Tier II and Tier III cities, ensuring that entrepreneurial opportunities are not limited to metro hubs. Currently operational in 12 STPI centres—Agartala, Bhilai, Bhopal, Bhubaneswar, Dehradun, Guwahati, Jaipur, and Vijayawada—NGIS leverages STPI’s strong incubation network and domain expertise to handhold promising startups at the grassroots.

By providing end-to-end support, from structured mentoring and market linkages to funding assistance of up to Rs 25 lakh, NGIS is enabling young ventures to scale their ideas into sustainable businesses.

Over the past three years, the scheme has supported more than 680 startups, of which around 138 have received direct financial support. Many of these startups are developing cutting-edge digital solutions in sectors like healthcare, edtech, agritech, and Industry 4.0, generating high-skilled employment and attracting global investors.

Through NGIS, STPI is not only driving innovation beyond metros but also fostering equitable opportunities for entrepreneurs across India, ensuring that talent from smaller cities has access to the same ecosystem advantages as those in established startup hubs.

ES: What is the Leap Ahead initiative of STPI?

AK: The Leap Ahead initiative of STPI is a focused programme aimed at identifying and supporting tech startups that are in their scaling or growth stage. The objective is to provide these startups with high-quality mentorship, scale-up funding, and global market access. It particularly benefits those looking at product diversification or planning expansion into new geographical markets.

STPI has already launched two successful editions of Leap Ahead under its Next Generation Incubation Scheme (NGIS). The first edition proved to be a resounding success, 87 high-potential startups were supported through a structured mentorship programme, 22 of them were connected to global opportunities, and investments worth Rs 44 crore were facilitated.

Building on this momentum, STPI launched the second edition of Leap Ahead in October 2024, which received an even stronger response. Over 500 startups applied, 150 presented during the screening rounds, and 60 game-changing startups were selected for the cohort. These startups have since undergone high-quality mentorship, and some have also been chosen to participate in STPI’s global connect program in Silicon Valley, USA.

ES: How is STPI fostering the growth of AI and deeptech?

AK: India is poised to emerge as a global hub for digital innovation and deeptech entrepreneurship, and STPI is playing a foundational role in that journey. Over the next five years, our vision is to foster leadership in areas like artificial intelligence, blockchain, IoT, and quantum computing.

While our early focus was on providing high-speed connectivity and incubation space, we have evolved significantly. Today, we offer domain-centric CoEs, cybersecurity services, cloud solutions through our Ananta platform, and advanced computing support via our five operational data centres. We have also created SAYUJ, a digital platform that connects startups with mentors, investors, and other stakeholders in the ecosystem.

STPI is committed to continually upgrading its offerings to meet the changing needs of the tech industry. Our aim is not only to support India's digital transformation but also to position the country as a global leader in software product innovation and tech entrepreneurship.