“True development is when the ‘Vocal for Local’ spirit becomes ‘Local for Global’ from the streets of Rajkot and Surat.”
– State Leadership Thought 2026

There was a time when, whenever startup or big companies were mentioned, only a few city names came to our minds. Such as Delhi, Mumbai, Chennai, Bengaluru, etc. Then time changed and other metro cities also made their name. Such as Jaipur, Ahmedabad, Chandigarh, Pune, etc.

In Gujarat, in the last two decades, Ahmedabad and Gandhinagar have grown in such a way that very few other cities have matched that speed. However, times change quickly because in the year 2026, Gujarat’s startup map is no longer limited to Ahmedabad only, but is continuously expanding into other cities.

Whether it is Rajkot becoming a hub for hardware and medical devices, Bhavnagar turning into a robotics hub, Surat’s industrial areas, or Vadodara becoming a pharma and AI research hub. All this did not happen suddenly. This is the result of decentralized development and reverse migration. Through Gujpreneur, today we will know about this.

Beyond Ahmedabad: Gujarat’s Tier-2 Startup Map

What Gujarat’s local entrepreneurs understood long ago, is now being recognized by national and global investors. Gujarat’s growth is no longer limited to Ahmedabad or selected metro cities, but its flow now passes through small yet powerful tier-2 cities.

As we said earlier, this did not happen overnight. Many factors worked behind it. We are presenting some selected factors below.

1. Cost Advantage for Early-Stage Startups

For any startup to become successful, the first thing is to move forward by keeping costs under control. Many startups fail only because they are unable to manage costs properly. In this area, Gujarat’s tier-2 cities take the lead.

This is because real estate, logistics, and employee salaries are all lower here. In fact, compared to metro cities, these costs are 40 to 50 percent lower. Because of this, startups can hire local talent, set-up offices and factories, and then expand their business.

2. Infrastructure as a Catalyst

Tier-2 cities exist not only in Gujarat but in every state of India. But why are Gujarat’s tier-2 cities growing faster? The main reason is strong infrastructure. Seeing the entrepreneurial spirit of Gujarat, both the central government and the Gujarat government are strengthening infrastructure in these cities at a fast pace.

Whether it is access to Rajkot through the bullet train or the inauguration of 14 new greenfield smart GIDC estates, connectivity between tier-2 cities and major cities has increased, and travel has become fast and smooth.

3. Real Business Density + Operational Advantage

Businessmen and entrepreneurs already existed in Gujarat’s tier-2 cities. Now their work is getting global recognition.

“When you are based here, you solve real problems every day – you’re not theorizing markets.”
– Neel Shah, Surat Diamond Entrepreneur

In tier-2 cities like Surat, Vadodara, and Rajkot, manufacturing ecosystems have existed for the last 2-3 decades. Whether it is textiles, machine parts, diamond factories, or engineering goods. Because of this, these cities are emerging as strong bases for startups.

4. Strong Mentor Networks & Old Business Families Helping

In these cities, well-established business families have now emerged as mentors. You can understand this through some city-wise startup specialization examples.

• Surat: This city, famous as the diamond city across the country, is now investing its wealth in SaaS and EdTech niches. Here, tech founders are being guided by textile mentors in the supply chain.
• Vadodara: Located near Ahmedabad, this tier-2 city is adopting future technology AI very rapidly. Recently, it has formed anchor partnerships with the Indian AI Research Organisation (IAIRO). Along with this, the pharma sector here also works as a mentor ecosystem.
• Rajkot: High-technology manufacturing has been happening here for a long time. Now, business families are emerging as mentors for automation startups.
• Bhavnagar: Port logistics experts here are guiding trade startups. Along with this, the robotics niche is growing rapidly.

These are some examples that have become a special identity of these tier-2 cities, and many startups have also emerged from them.

5. Government & Policy Nudges With Real Support

In the development of any city, local people’s support is important. But how fast the government takes decisions and what action plans it prepares also matter a lot.

Whether it is organizing public startup events or business summits, fast registrations, loan support, policy creation, or providing funding access to boost growth, support from local to state governments can be clearly seen in every area.

Real-World Examples & Mentorship

Through Gujpreneur, our effort is always to tell you about those companies and businesses that started locally and today have built a distinct identity not only in Gujarat but across the country. Some examples from tier-2 cities are:

• Havi – Robotics Toys Company

This Bhavnagar-based company today manufactures hundreds of robotics-based toys that are sold across the country. It also supplies its products to dozens of countries.

• DhiWise – Programming Automation

This Surat-based company is solving complex coding problems across India and abroad. With the help of AI, it builds world-changing apps, websites, and dashboards.

You will find dozens of such companies that started from these tier-2 cities and are now moving forward rapidly.

Conclusion

No matter where you are from, if you have good business ideas and the right skills, no one can stop you from moving forward. And if you live in these tier-2 cities of Gujarat, the system also supports you strongly.

That is why today we learned about the success stories of some major tier-2 cities of Gujarat and understood the reasons why they can emerge as startup hubs in the year 2026.