Tag: tier 2 cities

  • How Rural India Is Becoming a New AI Talent Hub: An Interview with Han Digital’s Saravanan Balasundaram

    How Rural India Is Becoming a New AI Talent Hub: An Interview with Han Digital’s Saravanan Balasundaram

    Rural India is emerging as a hub for AI data operations, creating employment opportunities for women and graduates while reshaping traditional BPO models and expanding digital careers.

    Q: Rural BPOs have traditionally run on voice and data-entry work. What’s actually changing on the ground as AI-adjacent tasks like annotation, RLHF, content moderation start replacing or supplementing that older workload? Is this a genuine transformation of the business model, or a bolt-on to existing operations?

    The metro voice-BPO engine in Bengaluru, Hyderabad, Pune, NCR or Chennai – this is not a bolt-on, it’s a contraction. AI agents are now handling 70 to 85% of routine generic customer queries, some service providers have cut human headcount by up to 70%, and annual hiring growth across business process management has fallen to under 40,000 a year. That part of the industry isn’t being supplemented. It’s being downsized, fast.

    Meanwhile, something different is happening outside of these metro cities. A separate kind of business is being built from scratch. The service providers who made this shift didn’t just tweak their old model. They rebuilt it: new delivery centers, new training programs, and new clients with AI labs and product companies instead of the usual domestic telecom and BFSI call-center accounts (which pay lower rates than global clients anyway).

    Q: Why are tier-ii and tier-iii cities specifically positioned to lead this shift, rather than it staying concentrated in metros? What’s the underlying cost, talent, or infrastructure logic that makes smaller cities viable, or even preferable, for this kind of work?

    Looking at graduate hiring trends over the years, roughly 60% of India’s graduates come from small towns. But most IT/ITES companies have never gone looking for talent there. Hiring has stayed stuck in metro and tier ii campuses, not because it has to, but out of habit.

    AI data work breaks that habit because the entry bar is different. Voice BPO needed neutral-accent English and telephony infrastructure; whereas annotation, labelling and physical AI data capturing needs a laptop, reliable broadband, sharp attention to detail, and often a regional-language fluency that’s actually more abundant outside the metros than inside them.

    Cost and workforce stability reinforce the case. Lower living costs make entry-level wages viable in locations where the same economics would be difficult to sustain in Bengaluru and Gurugram, while Tier-2 delivery centres often benefit from lower attrition than metro operations, creating a meaningful operating advantage.

    There is also an existing infrastructure and policy foundation to build on. Government programmes such as the India BPO Promotion Scheme and the Northeast BPO Promotion Scheme spent nearly a decade supporting ITES delivery centres in smaller cities and the Northeast, with the explicit goal of creating jobs beyond the metros. AI data operations are not starting from scratch; they are the next generation of work riding on an ecosystem that India has already spent years building.

    Q: AI annotation, RLHF, and human-in-the-loop work are being pitched as ‘new employment engines’ – what does a typical entry-level role actually look like (pay, skill requirements, training time), and how does it compare to the BPO jobs it’s replacing?

    Yes, particularly in terms of barrier to entry and ramp-up time. Traditional voice BPO can require weeks of training in language, accent, scripts and domain knowledge before an agent goes live. AI data work can often be onboarded within days, as it relies more on SOP adherence, attention to detail, SLA discipline and accuracy than fluent spoken English and real-time customer handling. That opens the door to a much broader talent pool, including people who may previously have been screened out of voice BPOs on language requirements.

    But the real opportunity is not to create another layer of entry-level annotation jobs—it is to build a career pathway, from annotation to review and quality assurance, and eventually to data operations and specialised domain roles. With increasingly distributed and flexible delivery models, talent in rural and emerging cities can participate in specialised work across legal, healthcare, finance, risk and compliance. Done right, AI data operations can become more than the next BPO model: they can create a distributed employment ecosystem that moves people from accessible entry-level work into higher-value, specialised roles.

    Q: Women and first-generation professionals are often cited as key beneficiaries of this shift. What’s driving that deliberate hiring strategy – the nature of remote/flexible work, lower barriers to entry, or something else? And what obstacles still stand in the way?

    The pattern shows up everywhere we look at this workforce, and it’s consistent. Most of the Tier 1/2 centres run with 70% women contributing voice, annotation and 20+ multilingual (mostly INDIC languages) data for more. Even in an adjacent human-in-the-loop space rural cities women make up 35 to 40% of users with engagement running two to three times higher than men’s.

    First-generation professionals benefit for a related reason: these centres are being established where the graduate talent already lives, in towns that the metro-first hiring model largely overlooked for two decades. We see this across our own delivery teams: computer science and polytechnic graduates from agricultural households, taking their first salaried jobs and accessing work that, until recently, simply did not exist within commuting distance of their hometowns.

    The challenges, however, are real. Broadband and power remain unreliable in some locations, and the industry cannot afford to recreate the worst practices of traditional BPO at the bottom of the AI value chain. If rural AI work becomes synonymous with intensive surveillance, limited benefits and no career progression, the industry risks losing both the goodwill and the very workforce it is now being recognised for bringing into the digital economy. Inclusion will only be sustainable if these are built as careers, not just jobs.

    Q: There’s talk of India building a workforce of a million-plus people in rural AI-support roles by 2030. Is that number realistic given current growth rates, or is it aspirational? What would need to go right or wrong for it to happen?

    A million-plus rural AI-support jobs by 2030 is ambitious, but achievable if the AI data economy continues to scale at pace. We would view it as a credible industry opportunity, not a number that is already guaranteed by current growth rates.

    For that to happen, a few things need to go right. Global AI labs and enterprises will need to sustain spending on human-in-the-loop data work rather than move too aggressively toward synthetic data. Tier-2/3 delivery models will need to expand across more towns instead of concentrating in a few urban hubs. Digital infrastructure, particularly broadband and reliable power, will need to keep pace. And policy support will need to evolve beyond traditional BPO to recognise the emerging AI-support ecosystem.

    There are risks too. India could end up competing primarily on price with other English- and multilingual-capable markets, limiting the value of the opportunity. The bigger risk is repeating the traditional voice-BPO model of high churn and limited career progression, creating jobs people cycle through rather than careers they build.

    A million rural AI jobs, therefore, is best seen as a ceiling the industry can build towards, not a floor that already exists.

    From what we are seeing on the ground, rural and tier-2/3 India is not simply a lower-cost extension of the AI data economy. It can be a better-fit talent base, with lower attrition, an underutilised graduate pool and strong participation from women and first-generation professionals. The real opportunity is to combine that talent advantage with higher-value AI work and clear career pathways. If that happens, rural India could emerge as a meaningful new engine of distributed digital employment – and not just the next location for low-cost outsourcing.

  • Crypto Futures Overtake Spot Trading in India, Tier-2 Cities Lead Retail Surge

    Crypto Futures Overtake Spot Trading in India, Tier-2 Cities Lead Retail Surge

    India’s cryptocurrency market is undergoing a significant shift, with futures trading now outpacing spot trading for the first time. Data from Indian exchange Giottus, based on its 1.3 million users, shows that crypto futures accounted for 57.22% of total trading volume between September 2025 and May 2026, while spot trading made up 42.78%.

    The surge is being driven primarily by retail investors from smaller cities. According to Giottus analysis, 48% of futures participants come from Tier-2 cities, compared to 31% from Tier-1 metros and 21% from other areas. This marks a broadening of crypto derivatives engagement beyond metropolitan hubs.

    “India’s crypto participation story is becoming geographically broader. We are seeing increasing engagement from smaller cities in products that were once viewed as niche or high-complexity,” said Vikram Subburaj, CEO of Giottus.

    Monthly user growth in futures trading remained strong throughout 2026. Participation increased 42.5% in February, followed by 28.5% in March, 35.3% in April, and 30.3% in May. Despite the rapid growth, futures users represent only 24% of Giottus’ active users, indicating substantial room for further expansion.

    Shift Toward Altcoins and Regional Dominance

    Trading behavior is also evolving. Bitcoin and Ethereum futures combined accounted for just 15.35% of total futures volume. Ethereum contributed 7.07%, Solana 5.76%, and XRP 5.24%. The data suggests Indian traders are increasingly exploring altcoins and high-volatility assets beyond the top cryptocurrencies.

    Tamil Nadu emerged as the strongest regional market, contributing 46.6% of the total number of futures traders and 59.26% of the total futures volume. Kerala ranked second with a 10.23% share.

    Balanced Risk Profiles and Evolving Trader Behavior

    Risk appetite among futures traders appears measured. Long positions accounted for 52.79% of trades, short positions 47.21%. The average leverage stood at 10x, with over 30% of trades using leverage above 10x. However, monthly liquidation ratios remained low, ranging between 0.55% and 2.52%.

    “The liquidation trends are important because they suggest participation is not entirely speculative or reckless. Users are showing greater awareness around position sizing and risk management while using leveraged products,” Subburaj noted.

    Women represented 13.24% of futures traders and used lower average leverage than their male counterparts. The most active trading hours were between 7 pm and 10 pm, aligning with post-work activity and overlapping with U.S. market hours.

  • India’s Startup Boom: How Small Towns Are Becoming Job Powerhouses

    India’s Startup Boom: How Small Towns Are Becoming Job Powerhouses

    Not long ago, a skilled professional in Coimbatore or Kochi faced a tough choice: move to a metro city or stay and compromise on career growth. That dynamic has shifted dramatically. Startups across India are now hiring aggressively in smaller towns and emerging business hubs, offering rewarding careers without the need to relocate. This trend is reshaping the country’s employment landscape.

    A Decade of Transformation

    India’s startup story has evolved from a metro-centric narrative to a nationwide phenomenon. According to the Department for Promotion of Industry and Internal Trade (DPIIT), recognized startups surpassed 2.23 lakh by March 2026, generating over 23.36 lakh direct jobs—a 36.1% increase from the previous financial year. This growth didn’t happen overnight. When the Startup India initiative launched in 2016, there were only about 500 recognized startups. Ten years later, the program has facilitated nearly Rs 15 lakh crore in private funding, and more than 1.07 lakh startups now include at least one woman director or partner.

    Shift to Tier 2 and Tier 3 Cities

    The most striking change is where these startups are headquartered. Industry and government estimates indicate that Tier 2 and Tier 3 cities now account for 48 to 50 percent of all DPIIT-recognized startups. Lower operating costs—office space can be up to 50% cheaper and talent costs 25–30% lower than in metros—combined with improved internet access and the rise of remote work have made these cities attractive for founders and employees alike.

    Hiring Beyond Software Developers

    While software engineers remain in demand, startups are hiring a diverse range of professionals. Agritech companies require field officers, agronomists, and customer support staff near farming regions. Fintech firms build local KYC verification, sales, and compliance teams. SaaS companies establish remote engineering, product, and support teams in smaller cities. Designers, marketers, analysts, and operations executives also find ample opportunities. This hiring spree creates a ripple effect, pulling in local vendors, logistics providers, training centers, and consultants who also expand their workforce.

    Emerging Startup Hubs

    Several cities exemplify this shift. Chandigarh’s tricity region had over 633 DPIIT-recognized startups by end of 2025, with companies like AgNext Technologies and DataKund hiring in AI and analytics. Kochi has gained prominence in AI and global capability centers, bolstered by Kerala’s rising startup funding. Coimbatore’s startup count grew from 271 in 2020 to 1,350 by 2024, with agritech, manufacturing tech, SaaS, and fintech companies hiring locally. These cities are retaining talent that would have previously migrated to metros.

    Government Support Fueling Growth

    Government schemes have addressed some common hurdles. The Credit Guarantee Scheme for Startups has backed loans worth over Rs 755 crore, providing capital for hiring and expansion. On the Government e-Marketplace, more than 30,000 startups have registered, with cumulative orders exceeding Rs 54,000 crore through FY 2025–26. This access to customers and capital is crucial for founders outside major investment hubs.

    Challenges Remain

    Despite the momentum, some gaps persist. Graduates in smaller cities often lack exposure to specialized roles like product management or growth marketing. Power and internet reliability remain inconsistent in certain regions. Venture capital funding is still concentrated in a handful of metros. Women-led startups, while growing, still represent a smaller share. Addressing these issues will determine whether the job surge becomes a lasting trend.

    The Road Ahead

    India’s startup story has moved beyond the metros. More founders are building outside big cities, more graduates are finding quality jobs close to home, and more businesses are proving that growth doesn’t require Bengaluru or Delhi. If this trend continues, the biggest employment gains over the next decade could come from India’s smaller towns. What began as a startup movement is now a jobs revolution—and for many in smaller cities, it means career opportunities without leaving their communities behind.