Can India’s Next Unicorn Come from a Tier-2 City? Piyush Goyal Thinks So

In the buzzing corridors of Delhi’s power centers, a crucial conversation is unfolding — one that could redefine the future of India’s startup ecosystem. At its heart is a question that challenges traditional thinking: What if India’s next billion-dollar startup doesn’t come from Bengaluru, Delhi, or Mumbai — but from Bareilly, Bhubaneswar, or Bhopal?

Union Commerce and Industry Minister Piyush Goyal, joined by Minister of State Jitin Prasada, recently chaired a high-level review meeting with senior officials to assess the performance and direction of all government-backed Startup Funds. But this wasn’t just another policy meeting. It was a call to action — to look beyond the usual hotspots and put India’s smaller cities at the centre of the startup story.

“India’s innovation potential is not limited to metro cities,” said Goyal. “We must ensure that young entrepreneurs in smaller towns have the same opportunities, resources, and support to succeed.”

Startup Dreams Beyond the Metros

Over the last decade, India’s startup ecosystem has evolved into one of the world’s most vibrant. With more than 100 unicorns, lakhs of registered startups, and a strong pipeline of innovation, India has made its mark on the global map. But much of this boom has been concentrated in urban centres — Bengaluru, Delhi NCR, Mumbai, Hyderabad.

Now, the government is making a clear shift. The review meeting, part of the broader Startup India initiative, is focusing on Tier 2 and Tier 3 cities — often overlooked, yet brimming with untapped entrepreneurial energy.

In towns where startup founders often have to rely on self-funding or bootstrap for years due to lack of access to VCs, angel networks, or even reliable mentors, the government now wants to plug the gaps.

Strengthening the Support System

According to sources present at the meeting, the ministers discussed critical areas that need immediate attention:

• Enhanced funding mechanisms for early-stage startups in non-metro cities

• Better outreach via incubators and accelerators in local institutions

• Strengthening state innovation councils to build localized ecosystems

• More mentorship and technical support in regional languages

These moves are aimed at not just inspiring young talent in small towns to dream big but also giving them a real shot at success.

“It’s time to mainstream entrepreneurial talent from every corner of India,” said Jitin Prasada. “We’re not just talking about access to capital — we’re talking about access to networks, to information, to opportunity.”

Big Bets on Emerging Technologies

The ministers didn’t stop at geography. They also outlined priority sectors that could shape India’s future innovation story — Artificial Intelligence (AI), Clean-tech, and Deep-tech topped the list.

India is betting big on these high-impact sectors to not only solve domestic challenges — like climate change, energy transition, and digital inclusion — but also to position itself as a global innovation hub. The belief is clear: India’s startup future is not just about food delivery apps or ecommerce anymore. It’s about solving for the planet, for the next decade, and for the last person in the queue.

And these deep-tech bets may well see their biggest breakthroughs come from labs and garages in smaller cities — if given the right support.

Startup India: The Vision Ahead

The Startup India initiative, launched in 2016, has become a key pillar of India’s economic and innovation strategy. This latest review underscores the government’s continued commitment to building an inclusive, grassroots-led startup revolution — one where your hometown is no longer a barrier to your big ideas.

Startups from cities like Jaipur, Indore, Kochi, and Guwahati have already begun making their presence felt. With greater handholding from state governments, innovation councils, and national-level policy support, the foundation is being laid for many more.

India is not just building startups. It’s building a startup nation — one that includes everyone. As Minister Goyal and his team realign funding, resources, and vision towards the hinterlands, the next wave of unicorns, changemakers, and problem solvers could come from places we’ve never looked before.

Because talent is everywhere. It’s time opportunity was too.