Nagpur’s IT Industry Growth Is Stagnant For 5 Years: Eco Survey

Nagpur's IT industry seems to be in a time warp. Over the past decade, while cities like Pune, Mumbai, and emerging tier-two hubs like Chhatrapati Sambhaji Nagar and Nashik witnessed a spurt in private IT parks, Nagpur remained stagnant. This was highlighted by the latest Economic Survey of Maharashtra. The fallout is a talent exodus to larger cities. However, experts believe positive signs are emerging, though the timeline for Nagpur's transformation remains uncertain.As per Economic Survey of Maharashtra 2024-25, since the inception of IT and ITeS policy, 628 private tech parks were approved as of December 2024. The majority are concentrated in Pune (220), Mumbai city and suburban areas (196), and Thane (196). Nagpur has only five, along with Nashik (5), Chhatrapati Sambhaji Nagar (4), Wardha (1), and Raigad (1). The state's software export touched Rs 7.47 lakh crore, with an investment of Rs 66,718 crore up to March 2024, generating employment for approximately 23.65 lakh people.A comparison with the 2014-15 Economic Survey highlights a contrast. A decade ago, Pune had 166 private IT parks, Mumbai 158, and Thane had 128. Nagpur's count? Still five. While Pune and Mumbai witnessed significant growth, tier-two cities like Nashik and Chhatrapati Sambhaji Nagar recorded a marginal increase.Industry insiders point to multiple reasons for Nagpur's sluggish IT growth. Speaking to TOI, Prashant Ugemuge, director of Vidarbha Infotech Pvt Ltd, admitted that for years, big IT companies cited lack of an ecosystem, limited lifestyle amenities, and talent retention issues. However, he sees a shift. "Efforts are underway by the govt and city stakeholders to offer incentives, woo reputed educational institutions, and host industry events to generate interest in the city. The current environment will in near future drive change for the IT industry," he said.Ugemuge also noted employees of big companies already operating in Nagpur are experiencing a shift in lifestyle. "This is a good sign. Word-of-mouth publicity about Nagpur's improving lifestyle for IT professionals is playing a crucial role," he added.A senior official from Software Technology Parks of India (STPI) echoed similar sentiment, pointing out that Nagpur offers land, high-speed internet, and infrastructure. The problem, he said, lies elsewhere. "Infrastructure can be developed, but there must be intent to set up shop here. Many talented individuals from Vidarbha prefer bigger cities for higher salaries and opportunities," he explained.A CEO of a leading company in one of Nagpur's IT parks emphasized the need for a mindset shift, not just among politicians and administrators, but also among people. "We are the wrong messengers because most of us flaunt the fact that our children moved to Pune or Mumbai for jobs. Why do we glorify that? Talent is here. Even my housemaid's daughter secured a job at an IT giant eight years ago. There are individuals from Gadchiroli who are working in IT companies in Pune and Mumbai, not here."For now, Nagpur's IT industry remains in limbo, waiting for the right mix of vision, infrastructure, and commitment to transform the city into a true tech hub.Get the latest lifestyle updates on Times of India, along with Holi wishes, messages and quotes !