India’s journey as a global IT powerhouse is rooted in robust infrastructure, strategic decentralization, and supportive policy frameworks. At the heart of this boom is the Software Technology Parks of India (STPI)—a sprawling network of centres that have helped transform not only metro hubs like Bangalore and Hyderabad but also Tier-2 and Tier-3 cities such as Jaipur, Kochi, and Madurai.

This post explores:

• The evolution and scale of the STPI network
• A comprehensive city-wise list of STPI centres
• How metro IT hubs sustained early growth
• The rise of Tier-2 & Tier-3 tech cities
• Key enablers and challenges ahead

1. STPI: The Backbone of India’s IT Export Infrastructure

Established in 1991 under the Ministry of Electronics & IT, STPI was envisioned to catalyze IT/ITES exports through physical infrastructure, business incentives, and technological support. From a modest few centres, it has expanded to over 63 operational STPI centres, with 22 more in the pipeline, as approved by the government.

Key Offerings

• Export facilitation: STPI units enjoy customs and duty exemptions on IT hardware, access to CST refunds, 100% FDI, and streamlined approvals.
• Innovation spaces: Co-working units, data centres, and 24 domain-specific Centres of Excellence (CoEs)—covering AI, IoT, VFX, gaming, cybersecurity, and Industry 4.0.
• Startup ecosystem support: Through NGIS incubators, mentor networks, and seed funding facilitation.

2. STPI Locations: Spanning India’s IT Landscape

STPI has established centres in hubs and emerging markets alike, ensuring inclusive growth across India:

• Metro centres: Bengaluru, Hyderabad, Chennai, Mumbai, Noida
• Tier-2 & Tier-3 hubs:
  • West: Gandhinagar, Surat, Vadodara, Pune, Nashik
  • North: Chandigarh, Jaipur, Dehradun, Patna
  • East & Northeast: Bhubaneswar, Guwahati, Shillong, Imphal
  • Central & South: Pune, Aurangabad, Hubli, Mangaluru, Coimbatore, Tirupati, Vijayawada, Visakhapatnam, Kochi
  • Emerging growth centres: Ranchi, Bhilai, Lucknow, Gwalior, Deoghar, Mysuru, Agartala, Aizawl

This extensive network shows a clear intent: deconcentrate IT infrastructure and bring investment to smaller towns.

3. Metro IT Powerhouses: Bengaluru & Hyderabad

Bengaluru: India’s “Silicon Valley”

• Generates roughly $64 billion in IT exports annually and contributes nearly one-third of India’s software export industry.
• Boasts over 1 million IT professionals, making it a top global tech centre.
• Ecosystem enriched by iconic tech parks such as Electronics City and RMZ, major campuses, incubators, universities, and global R&D centres.

Hyderabad: The Rising Tech Stronghold

• IT employment skyrocketed from 320,000 to 1 million in just a decade.
• STPI Hyderabad alone contributed INR 1.42 lakh crore in exports during FY 2024–25, with all STPI units crossing the INR 10 lakh crore mark.
• The cluster includes HITEC City, hardware parks, and global giants like Amazon and Microsoft.

4. Tier-2 & Tier-3 Cities: A New Wave of Tech Hubs

Emerging ecosystems are building momentum through a combination of talent, costs, policy, and quality of life.

Drivers of Growth

• Cost-efficiency: Real estate and employee salary costs are typically 25–50% lower than metros.
• Local talent: Regional colleges feed a steady pool of digitally skilled graduates.
• Lower attrition: Talent is less transient, fostering workforce stability.
• Infrastructure: Improvements in connectivity and data infrastructure combined with state incentives.
• Enterprise presence: Indian and global firms like Genpact, Cognizant, TCS, HCL, Infosys, and Wipro are expanding operations into cities such as Madurai, Bhubaneswar, Jaipur, and Nagpur.

Growth in Numbers

• Job openings in Tier-2 cities rose nearly 42%, while metros grew at around 19%.
• The NASSCOM–Deloitte “Emerging Tech Hubs” report confirms the rise of 26 non-metro cities establishing IT clusters.
• Over 45% of DPIIT-registered startups are based outside major metros.

5. Examples of Tier-2 Tech Centres

• Madurai: HCLTech’s centre already exceeded its staffing goals, tapping local talent.
• Bhubaneswar: A Cognizant delivery centre is operational; the city’s emerging innovation ecosystem signals future potential.
• Jaipur & Indore: Rapid tech deployment driven by local policies; IT job growth recorded at 14–18%.
• Kochi (InfoPark): Employs over 70,000 professionals across 580 firms.
• Chandigarh and Vadodara: Well-established IT parks and GCCs offering global services.

6. STPI CoEs and Incubators: Supporting Innovation Nationwide

STPI’s CoEs provide domain-specific research hubs across multiple cities:

• Hyderabad: IMAGE (AI, Gaming, VFX), Kalpataru (Industry 4.0)
• Gurugram: Apiary (Blockchain)
• Bengaluru: IoT OpenLab
• Pune: Motion (Industrial Technologies)
• Bhubaneswar: Electropreneur Park, VARCoE, FabLab
• Shillong: Animation CoE; Imphal: AR/VR CoE; Guwahati: IoT Agri CoE

The NGIS incubators in 12 Tier-2 cities (e.g., Agartala, Bhubaneswar, Jaipur, Lucknow) foster regional startups aligning with national innovation goals.

7. Key Challenges Ahead

Despite strong progress, several challenges must be addressed:

• Infrastructural Gaps: Many Tier-2 cities lack global connectivity (airports, metro links) needed for expat and client engagement.
• Talent Upskilling: Need to enhance advanced digital skills to match evolving business needs.
• Policy Continuity: Long-term subsidy and infrastructure assurance is essential.
• Ecosystem Services: Tier-2 cities still need more access to investor networks, legal advisory, and professional service markets.
• Data Reliability: City-level export and employment data is fragmented.

8. The Road Ahead: Building a Multi-Nodal Future

To ensure sustained growth:

• Upgrade supply chains: From Tier-2 to Tier-3 cities to support hardware-focused IT growth.
• Enhance SKILL ecosystems: Institute new specialized IT training centres in emerging hubs.
• Establish co-working & incubation networks: Build more localised support for startups.
• Continue policy backing: Expand STPI centres, plug-and-play infrastructure, and innovation schemes.

🔍 Summary

9. Final Word

India’s IT landscape is evolving—from metro-dominated clusters to a vibrant, multi-node network that includes smaller cities. With STPI as the national umbrella, and enabling policies supporting both metro and non-metro growth, the future of Indian IT is inclusive, distributed, and innovation-driven.