STPI focuses on tech startups, GCCs; 10 new parks in smaller cities soon

After playing a pivotal role in shaping India’s IT services sector for over three decades now, Software Technology Parks of India (STPI), an autonomous body under the Ministry of Electronics and Information Technology (Meity), is now realigning its focus towards the tech startup ecosystem and Global Capability Centers (GCCs).

In line with this shift, the body is soon going to operationalise 10 new STPI parks across Tier-II and Tier-III cities, aimed at providing critical infrastructure for the next generation of technology startups.

In an interaction with Business Standard, Arvind Kumar, Director General, STPI, said that these parks will focus on offering tech startups compute power, research facilities, and a conducive environment for innovation.

"The IT services boom was centred around metro cities, but the startup ecosystem needs to be decentralised. Our goal is to tap into talent pools in tier-II and tier-III cities, which remain largely underutilised but have immense potential to contribute to India’s tech revolution," he added.

STPI currently operates 65 centres across the country. Of this, 57 are in Tier-II and Tier-III cities. The government had recently given approval for setting up 20 additional STPI centres in the next phase of expansion.

The new parks are expected to provide more than just office spaces; they will be equipped with high-performance computing infrastructure, including cloud and GPU services.

To support artificial intelligence (AI), machine learning, and other deep-tech startups, STPI has partnered with Yotta Infrastructure to offer affordable GPU services, which are essential for developing AI models. “We’re addressing a critical need for compute-heavy applications that early-stage startups often struggle to afford,” Kumar said.

In addition to Yotta, STPI is also planning to expand its existing partnership with another Indian cloud player ESDS Software Solutions, to deliver scalable cloud infrastructure. “This will allow startups to access and secure scalable cloud solutions, removing a significant barrier to entry into tech innovation,” Kumar explained.

The initiative comes at a time when India’s startup ecosystem is witnessing rapid growth, but many players remain concentrated in metropolitan hubs such as Bengaluru, Mumbai, Hyderabad, and Delhi-NCR. STPI plans to set up parks in smaller cities to disrupt this trend by offering startups in places like Bhubaneswar, Indore, and Patna access to resources typically available only in major tech hubs.

Kumar highlighted that the parks are intended to create a sustainable tech ecosystem in these regions. "We need to democratise access to technology. Our aim is to provide facilities in these cities that match or even surpass what you find in traditional tech hubs," he added.

In addition to these infrastructure initiatives, the organisation is also focusing on expanding GCCs in India. “These centres, often the R&D and innovation arms of global corporations, play a significant role in bringing cutting-edge technology to India while providing local talent with access to global markets,” said Kumar.

“GCCs are not just service providers for global firms, they are also emerging as innovation hubs, developing solutions that cater to the local market as well as global needs,” he added.

To further boost the startup ecosystem, STPI is also aligning with the government’s broader push for innovation in sectors such as AI, cybersecurity, and semiconductor manufacturing. Under the India Semiconductor Mission, STPI is working to build semiconductor design infrastructure for startups. “The intersection of AI, cybersecurity, and semiconductors represents the next frontier of technological innovation, and STPI is committed to facilitating this through strategic partnerships and infrastructure development,” Kumar said.

However, despite these ambitious plans, challenges remain. "Scaling innovation in Tier-II and Tier-III cities requires more than just infrastructure. Access to talent, capital, and market linkages will be crucial to the success of these new parks," Kumar acknowledged, adding that STPI is working closely with venture capital firms and academia to bridge these gaps.