Redefine India's Tech Landscape by growing to Tier-2 and Tier 3 cities

In a column written by Professor Amit Kapoor, Honorary Chairman, Institute for Competitiveness (IFC) for Financial Express, a few interesting and notable facts were mentioned:

• The development of AI and its economic benefits are currently concentrated only in some large urban areas.
• He cautions this could lead to smaller cities getting sidelined. This could worsen economic inequality between regions.

The reasons for the barriers in smaller cities mentioned are mainly the infrastructure gaps - where only ~15% households have high-speed fibre connections in the Tier 2 and Tier 3 cities, with many lacking basic internet accesses. The next important factor has been the high cost involved. 

The author provides 3 solutions for short term to long term. In the short to medium term, the policymakers must strive to improve connectivity, digital literacy and basic infrastructure. Metros can develop the tech, but smaller cities should adapt it for local needs, such as informal or small-scale regional businesses. In the long term, the tier 2 and tier 3 cities must focus on developing indigenously rooted startups, region-specific AI models catering to local needs

For that, he mentions that finally the government should create the necessary infrastructure, provide low-cost incentives to metro-based startups to set up operations in smaller towns, and funding would also be needed initially as such initiative are not only costly but expensive too.

OUR VIEW:

The most important fact mentioned by the author, Professor Amit Kapoor, has been that for India to really develop in the Digital space, it has to grow beyond the Tier 1 cities. An overall development in any field cannot be done successfully if it does not percolate to the other less developed cities, as the latter too contribute a lot towards development of the country. As India pushes for incorporating AI tools in virtually every sector, including Agriculture, its gradual penetration towards the semi-urban and rural areas is needed. The government has to take the maximum responsibility in facilitating this shift due to the high cost involved and education needed for the same.  

Link - AI growth beyond metros - Opinion News | The Financial Express