What are the trends in India's Tier 1 and 2 cities?

In this edition of Across Asia, we examine the differences in India's cities. What are some of the recent trends in these cities?

In India, cities are categorised into tiers. We discuss the 2 tiers:

• Tier 1 (8 recognised cities)
• Tier 2 (40 recognised cities)

Trends of Tier 1 Cities in India

• Thriving urban centres which serve as major economic, commercial and cultural hubs, drawing both national and international attention and offering a wealth of opportunities and amenities
• Boasts exceptional infrastructure, world-class educational institutions and diverse industries, along with abundant employment opportunities which attract a diverse population

8 recognised Tier 1 cities

• Mumbai, Delhi NCR, Bangalore, Hyderabad, Chennai, Kolkata, Pune, Ahmedabad

Infrastructure Examples in India's Tier 1 Cities

International Airports

• Indira Gandhi International Airport, New Delhi

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• Chhatrapati Shivaji Maharaj International Airport, Mumbai

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Education

• Indian Institute of Science, Bangalore

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• Jawaharlal Nehru University, New Delhi

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Tech Hubs

• Yotta NM1 Data Center, Mumbai

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• International Tech Park, Hyderabad

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Trends of Tier 2 Cities in India

• Cities that witness rapid growth and urbanisation, presenting promising opportunities for development
• Experiencing significant economic and infrastructural advancements, which attract investments and foster business growth
• Offer a range of industries, educational institutions, and healthcare facilities, catering to the needs of their growing populations

Notable Tier 2 Cities

• Surat, Jaipur, Coimbatore, Cochin, Trivandrum, Vizag, Nagpur

Infrastructure Examples in India's Tier 2 Cities

Industries

• ELCOT Special Economic Zone SEZ, Coimbatore

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• Textile Manufacturing, Surat

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Healthcare

• Aster Medcity, Cochin

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Connectivity

• Jaipur Metro

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• Urban Development Project, Trivandrum

Government Initiatives

Several government programs are driving infrastructure development, including:

1. National Urban Transport Policy (NUTP): Initiative on public transport investments in Indian cities, particularly benefiting Tier 2 cities by promoting sustainable urban mobility solutions
2. Smart Cities Mission: Initiative to develop 100 smart cities across India, focusing on technology-driven solutions for both Tier 1 and Tier 2 cities to improve urban infrastructure and services
3. PM Gati Shakti Master Plan: An infrastructure development plan to integrate multi-modal connectivity projects across cities to enhance logistics efficiency and economic growth

Summary

• Infrastructure trends in Tier 1 and Tier 2 cities in India, along with government initiatives, demonstrate significant progress and a positive outlook for urban development
• These programs are driving technological integration, improving connectivity, and fostering economic development, with a focus on creating smart, sustainable urban environments
• While challenges remain, the ongoing efforts suggest a promising trajectory for India's urban infrastructure, with both Tier 1 and Tier 2 cities poised to play crucial roles in the country's economic and technological advancement

Sources

https://www.capitaland.com/en/find-a-property/global-property-listing/businesspark-industrial-logistics/international-techparkhyderabad.html

https://manufacturing.economictimes.indiatimes.com/news/industry/powering-indias-manufacturing-resurgence-the-rise-of-tier-2-and-tier-3-cities/111180362

https://www.india-briefing.com/news/indias-tier-2-cities-what-is-the-appeal-for-foreign-businesses-21974.html/

https://www.india-briefing.com/news/indias-tier-2-cities-what-is-the-appeal-for-foreign-businesses-21974.html/

https://www.squareyards.com/blog/list-of-smart-cities-in-india-smcart

https://www.india-briefing.com/news/pm-gati-shakti-national-master-plan-achievements-2024-35336.html/

Want to learn about the differences in Tier 1 and Tier 2 cities in the premium housing landscape?

Read our report: "The Trends and Shifting Geography of India's Premium Housing Market" authored by Dharish David, PhD :

Read more about the Asian market

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