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India’s IT growth story finds new frontiers in smaller citiesState government incentives, availability of trained manpower and vacant tracts of land are driving this growth.
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C sagarika ghose 2019-08-26 00:00:00 Submit a News

Think tech hub and you think Bengaluru, Gurugram, Pune, maybe Hyderabad. That map is fast expanding. Smaller cities are attracting major IT and ITeS companies, says Anuj Puri, chairman of Anarock Property Consultants. “Among the emerging cities that are seeing demand from IT majors are Kochi, Lucknow, Chandigarh and Indore,” Puri says.

The main factors driving this demand are state government incentives and land availability. Availability of talent and increased investor interest are factors too, as is the saturation of the top tech cities. “Growing infrastructure in smaller cities that are also state capitals, is helping drive this change,” Puri says.

Education hubs have an immediate advantage, says Rohan Sharma, research head at Cushman & Wakefield India, a real-estate research firm. “Cities like Lucknow, Chandigarh and Kochi have a ready pool of trained students that companies can draw from.”

State government incentives for tech parks and startups is helping. The Kochi government in January opened an integrated startup complex where several tech companies have since set up shop. Similarly, Lucknow has been wooing IT companies with the help of incentives offered by the state government.

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