Maharashtra’s IT Sector Expands Beyond Pune and Mumbai, Driving Growth in Smaller Cities

Pune, 28th December 2024: Maharashtra’s Information Technology (IT) sector, traditionally dominated by Pune and Mumbai, is witnessing significant growth in smaller cities, marking a shift in the state’s software export landscape. Over the last five years, cities like Nagpur, Nashik, Kolhapur, and Chhatrapati Sambhajinagar (Aurangabad) have recorded impressive growth in software exports, highlighting the gradual decentralization of the IT sector.
According to statistics presented by Union IT Minister Ashwini Vaishnaw in the Lok Sabha, Pune continues to top the state’s software export chart, followed by Mumbai. However, emerging IT hubs in other cities are quickly gaining momentum.
For instance, Nagpur’s software exports grew from ₹405 crore in 2019-20 to ₹646 crore in 2023-24, marking a 50% increase. Similarly, Nashik’s exports rose from ₹210 crore to ₹495 crore, a remarkable 2.5-fold jump. Kolhapur’s software export value grew from ₹128 crore to ₹189 crore, while Chhatrapati Sambhajinagar saw its exports nearly double from ₹72.85 crore to ₹132 crore during the same period.
These numbers signify a steady shift as IT companies begin exploring opportunities outside the state’s traditional IT powerhouses.
Despite this encouraging growth, industry experts note that the expansion rate in smaller cities remains limited due to several challenges.
“While the IT sector is expanding in cities beyond Pune and Mumbai, the pace is still slow. To accelerate this growth, small cities require not only land but also substantial incentives. The availability of skilled manpower is another crucial factor. With these measures, the decentralization of IT industries in the state will become more achievable,” said Dr. Deepak Shikarpur, a prominent IT expert.
K.S. Prashant, former president of the Software Exporters Association of Pune (SEAP), echoed similar sentiments. “IT companies are now exploring opportunities in smaller cities due to their unique qualities. These cities offer improved standards of living and essential infrastructure, making them increasingly attractive for IT professionals. Wherever quality is found, the IT sector naturally expands. It’s a promising sign for the future of smaller cities in Maharashtra,” he remarked.
Maharashtra’s government has been promoting the development of IT infrastructure in smaller cities to balance the economic development across the state. Incentivizing companies to set up operations in emerging IT hubs and fostering local talent pools could drive further growth.
The rise of smaller cities as IT centers also benefits professionals seeking a better quality of life. Reduced congestion, lower living costs, and improving urban facilities make these cities appealing for both companies and employees.