Most of the start up action in India is in Pune, Banaglore, Delhi and Mumbai. This is where the incubators , accelerators and the angel investor networks are, which is why this is where all the ambitious founders go.
However, I believe that entrepreneurs in tier-two cities actually have an edge as compared to startups in Bangalore or Mumbai.
Now, this may seem counter-intuitive, because they are not as polished or sophisticated as the founders in Mumbai . They have less support, because the startup ecosystem in smaller towns is still immature.