Startup Bharat: India’s Next Startup Boom Will Rise from Small-Towns

TiE Bangalore’s new report reimagines the startup map of India—where Tier-2 and Tier-3 cities take centerstage in building the next generation of entrepreneurs.

"We need to move from Startup India to Entrepreneurial Bharat."
— Madan Padaki, President, TiE Bangalore

For years, the spotlight of India’s startup story has been fixed on the metros—Bengaluru, Delhi, Mumbai, and a few others. These cities became synonymous with innovation, venture capital, and unicorn dreams. But a new report suggests the next big chapter of India’s entrepreneurial journey won’t be written in these bustling metros. Instead, it will unfold in the quieter towns, the lesser-known districts, and the overlooked corners of the country.

At the 10th edition of the Matrix Global Summit, hosted by TiE Bangalore, a powerful report titled “India as a Startup Superpower by 2035: A Strategic Roadmap” was unveiled. And it comes with a bold prediction: more than 50% of India’s startups by 2035 will emerge from Tier-2 and Tier-3 cities.

This isn't just a statistical projection—it’s a vision for reshaping the very foundation of the Indian startup ecosystem.

The Call for ‘Entrepreneurial Bharat’

Prepared with the collective wisdom of over 60 startup ecosystem leaders—ranging from founders and investors to policy experts and academic thought leaders—the report is more than a compilation of trends. It is a strategic blueprint to guide India’s transformation into a global startup powerhouse by 2035.

The central idea? It’s time to shift from 'Startup India' to ‘Entrepreneurial Bharat’.

The metro-centric startup buzz must evolve into a grassroots movement, deeply rooted in local economies, education systems, and national policy.

The report proposes a nation-wide mission to democratize access to entrepreneurship, especially for young minds beyond the big cities. It recommends embedding entrepreneurship into the DNA of India’s youth by integrating it into 75% of secondary schools and 80% of higher education institutions by 2035.

It also pushes for bold policy actions to:

• Ease access to capital across all districts.

• Create regionally distributed innovation clusters.

• Foster startup-friendly regulatory frameworks.

• Promote deep tech and high-impact entrepreneurship beyond urban hubs.

Ambitious Outcomes for a New India

If the roadmap is followed, the report envisions:

• 50 million new jobs

• 100+ Indian startups going public on global exchanges

• Entrepreneurship contributing 15% to India’s GDP

These are not just numbers—they reflect a transformed economic landscape where job creators outnumber job seekers and innovation springs from every corner of the nation.

“This is not just a report, it’s a strategic invitation to reimagine India’s innovation trajectory,” said Madan Padaki, President, TiE Bangalore & Trustee, TiE Global.

At the summit, Infosys co-founder Kris Gopalakrishnan added another layer of insight. He emphasized the need for India's research institutions to embrace big, bold, long-term missions, akin to how DRDO or ISRO operate.

“The research ecosystem is still stuck in the past—it needs to think big. Look at ISRO, look at DRDO. We can do it,” said Kris Gopalakrishnan.

He urged institutions like IITs, NITs, and universities across the country to launch three to four “mission mode programmes” every year—large-scale, multi-disciplinary, multi-year initiatives aimed at solving big global problems.

Some ideas he suggested:

• Creating a human brain atlas

• Finding cures for cancer and Alzheimer’s

• Understanding dementia

• Building autonomous vehicles

• Developing hyperloop systems (already being explored at IIT Madras)

According to him, the spin-offs from such mega projects would be enormous—leading not only to scientific breakthroughs but also spawning high-potential startups with export-ready technologies.

“We must look at creating globally competitive businesses and research that leads to real impact, not just academic publications,”said Kris Gopalakrishnan/

The Bigger Picture: Inclusive Growth through Innovation

What makes this report especially significant is its timing. As India aims to become a $5 trillion economy, the next wave of growth cannot come from metros alone. There is a rising awareness that talent is everywhere, but opportunity is not—and that needs to change.

This vision of Entrepreneurial Bharat is about ensuring equal access to entrepreneurial resources, whether you're in Bhubaneswar, Bhopal, or Bareilly.

The story of India’s startup ecosystem is being rewritten—and this time, it includes everyone.

If this roadmap is followed, India in 2035 will not just be a country with more startups—it will be a country where entrepreneurship is a way of life, where children are taught to innovate from school, where district-level ecosystems rival metro cities, and where innovation becomes the biggest export.

As the Matrix Global Summit showed, the energy, ideas, and vision are already here. All India needs to do now is act on them—together.