India’s AI Blueprint: STPI Chief Arvind Kumar Charts a Bharat-First Vision at Republic AI Pre-Summit 2025

At the Republic AI Pre-Summit 2025, hosted by Republic Media Network and backed by Reliance Digital, India’s growing influence in the global AI landscape took center stage. Among the standout voices was Arvind Kumar, Director General of the Software Technology Parks of India (STPI), who offered an in-depth look at how India is building a grassroots-driven digital future.

Kumar, a key architect of India’s digital infrastructure journey, laid out the roadmap for AI-ready tech parks, innovation zones, and digital ecosystems tailored to empower Bharat — not just India’s urban centres, but its emerging tier-2 and tier-3 towns as well.

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Bharat-First Digital Infrastructure

“Out of 68 operational STPI centres, 60 are located in tier-2 and tier-3 cities,” Kumar revealed, underlining the government’s commitment to decentralised tech growth. "We are building the same kind of ecosystem for startups in smaller cities as we did for software exports."

Established in 1991, STPI has played a pivotal role in boosting India’s software exports, which today stand at a staggering $220 billion. “We never worked as a regulator — we’ve always been a facilitator,” Kumar said, pointing to STPI’s role in easing business bottlenecks and enabling single-window clearances for exporters.

India’s global software strength

Kumar noted that India accounts for over 55% of the world’s software services, and about 50% of the country’s total IT exports come through the STPI network. “Bangalore remains the most software-literate city, contributing nearly 40% of total software exports from Karnataka, followed by Telangana and Maharashtra,” he said.

However, innovation is now flowing from newer corners of the country. “More than 40% of founders we support today are from tier-2 and tier-3 cities,” he added, referring to STPI’s support for 1,800 new-age startups.

Building for the Future: AI, Products & Policy

To move beyond services and into product innovation, STPI has launched 24 Centres of Entrepreneurship focused on cutting-edge technologies. These centres are tailored to specific tech domains — “We could have a blockchain-focused centre in Gurgaon, and another dedicated to AI in Mohali,” Kumar explained.

India’s AI journey is being supported through a multi-pronged strategy under the national AI mission, covering infrastructure, compute capacity, platforms, innovation, vertical applications, and incentive schemes. “The government is backing the mission across all pillars,” he said.

One major step in inclusive digital access is Bhashini — India’s language translation initiative. “Bhashini is doing remarkably well and has been tested in India and abroad. It can translate across all Indian languages,” Kumar noted, while addressing the challenges faced by government schools in language translation.

Bridging the Gaps

Despite the progress, challenges persist in smaller cities — especially around awareness. “There’s a lack of exposure to government policies and limited global connect in tier-2 and tier-3 regions,” Kumar acknowledged. But he remains optimistic: with the right infrastructure, support, and mentoring, these cities are fast emerging as the next engines of India’s tech innovation.

A scalable, inclusive model

From grassroots innovation to digital highways, Kumar envisions a Bharat-first tech model that is scalable, inclusive, and future-ready. “This is not just about data centres or digital labs. It’s about vision, leadership, and building real, on-ground solutions for India,” he said.

With India targeting a trillion-dollar digital economy, Kumar’s vision — built on decentralisation, inclusion, and innovation — presents a bold template for how India can not only embrace the AI revolution but lead it.