India’s AI revolution is no longer confined to metro cities and urban tech hubs — it’s making bold strides into Tier 2 and Tier 3 towns, thanks to the Government of India’s ambitious GENESIS scheme.
Backed by a Rs 490 crore fund, the GENESIS initiative (Gen-Next Support for Innovative Startups) aims to transform India’s smaller towns into hotbeds of innovation by supporting 1,600 tech startups, with a strong focus on Artificial Intelligence, Data Analytics, Embedded Systems, and Emerging Technologies.
The message is clear: AI is not just for Bengaluru, Hyderabad, or Gurugram anymore. It's heading to Bharat — and it’s getting there fast.
What is GENESIS?
Launched under the Digital India umbrella, GENESIS is designed to promote grassroots innovation in non-metro regions by giving promising startups early-stage funding, mentorship, and incubation support.
Its goals include:
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Creating next-gen tech jobs in smaller cities
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Boosting self-reliance in AI and deep tech
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Building a distributed digital economy
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Reducing regional innovation gaps
A key partner in this initiative is the Software Technology Parks of India (STPI), which is operating multiple Centres of Excellence (CoEs) focused on emerging technologies across various small-town clusters.
STPI CoEs: Nurturing the Next Wave of AI Startups
As part of this effort, the government has already supported 458 AI startups via STPI’s network of Centres of Excellence.
Here’s a snapshot of the impact so far:
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🏢 104 startups have received seed funding under STPI COEs
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💻 38 startups focused on software product development and embedded electronics — each receiving ₹25 lakh
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🎮 17 startups innovating in AI-powered gaming, animation, VFX, and computer vision — funded with ₹5 lakh each
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📊 39 startups building AI and data analytics solutions — also receiving ₹25 lakh each
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🔬 10 startups working in cutting-edge emerging tech — funded with ₹2 lakh each
These startups are coming from smaller cities like Bhubaneswar, Coimbatore, Bhopal, Lucknow, and Guwahati — places that are now gaining national relevance in the deep tech ecosystem.
Why Small Towns? Why Now?
India’s growing digital infrastructure — from affordable mobile data to expanding internet connectivity — is leveling the playing field. Talent is everywhere, but opportunity historically wasn’t. GENESIS is changing that equation.
Here’s why this matters:
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Democratization of Innovation: By decentralizing startup growth, India is tapping into a broader, more diverse talent pool.
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Localized AI Solutions: Startups from smaller towns often focus on real-world problems — agri-tech, healthcare, vernacular AI, and rural supply chains.
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Cost-Effective Scaling: Operating from Tier 2 and Tier 3 cities reduces overheads, making these startups leaner and more sustainable.
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Job Creation Outside Metros: As these ventures grow, they will create employment and upskilling opportunities where they're needed most.
Looking Ahead: A National AI Backbone
India’s long-term tech competitiveness will depend on how inclusive its innovation ecosystem becomes. The GENESIS scheme is laying the groundwork for a more distributed, resilient, and grassroots-led tech economy.
With 1,600 startups targeted under GENESIS and hundreds more already empowered through STPI’s CoEs, the rise of “AI in Bharat” is not just aspirational — it’s already underway.
And as these startups scale from small towns to global stages, they’ll help define not just the future of AI in India — but India’s future in AI.
Stay tuned as we continue to track the journeys of these small-town innovators reshaping the tech map of India, one breakthrough at a time.
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