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- By Aditya Pratap Singh
- Fri, 16 Jan 2026 03:37 PM (IST)
- Source:JND
National Startup Day 2026: As India observes National Startup Day 2026, the country's startup story marks a truly transformative decade. When the 'Startup India' campaign launched in 2016, India had just a few hundred registered startups. Ten years later, that figure has exploded as the nation is now home to over 2 lakh registered startups across various sectors by the end of 2025.
These ventures are serving the nation from metro cities to remote villages, easing people's lives, generating immense employment, and contributing significantly to the revenue of the state and central government.
This growth in the number of startups highlighted a visible shift in the ecosystem's geography as well. What was once largely concentrated in metropolitan cities has now powerfully expanded into Tier 2 and Tier 3 cities, where entrepreneurs are building scalable businesses, creating jobs, and strengthening local economies.
Meanwhile, over the past decade, there were many instances where it was seen that founders have progressively expanded their operations into smaller towns, benefiting from improved digital connectivity, supportive policy reforms, and easier access to markets and capital.
Highlighting the impact the startup ecosystem is generating beyond metros, Utkarsh Yadav, founder of KhiladiPro, said India's startup ecosystem has evolved rapidly over the past decade, reaching beyond metro cities into smaller towns and villages.
"This growth can be attributed to our strong digital infrastructure, supportive policy reforms, and the ease of doing business. Simplified compliance procedures and relatively easier access to capital have further empowered founders to focus more on innovation and scale," Yadav noted.
What's more exciting is the adoption of AI across different sectors and industries, including sports.
Within sports-tech, AI helps identify talent from smaller cities earlier on, personalise training and deliver data-backed insights to athletes and coaches at grassroot level, he added.
This decentralisation is driving a demand for long-term financial stability, making access to affordable housing and credit an essential pillar supporting this emerging workforce.
Atul Monga, CEO and Co-Founder, BASIC Home Loan, believed that Start-ups from Bharat's Tier 2 and Tier 3 cities are powering the next chapter in India's economic growth story.
"They are creating jobs, solving local challenges, and strengthening regional economies. As digital access and policy support further expand, smaller cities will become the hub of innovation," Monga added.
As digital infrastructure deepens and technologies such as artificial intelligence see wider adoption, Tier 2 and Tier 3 cities are emerging as key drivers of innovation.
National Startup Day 2026 reflects this transition, marking a phase where India’s growth story is being shaped not just in metros, but across Bharat.
Considering the potential of startups in Tier-1 and Tier-2 cities, Arpit Mittal, Founder, SpeakX.ai, highlighted that Tier 2 and Tier 3 startups are helping India grow by solving problems.
According to Mittal, these startups are helping people in small towns in skill training, online education, logistics, and financial services.
"Founders in these cities understand local realities like low budgets, language barriers, and unequal access to good education and job opportunities, so they build practical solutions that can work for many people," Mittal stated.