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Explore The Charm Of Tier 2 Cities in India
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By: tushar
- January 18, 2024
Have you ever wondered about the diverse landscape of India? Do you ever think how the country is woven with the threads of its varying cities, each boasting a unique character and identity? India, a land of geographical and cultural diversity, houses numerous cities. Each of these beautiful cities has a different story to tell and pulsate with a distinct rhythm. Although all these cities are connected to one another in one way or another, the Government of India classifies them into four major tiers like, Tier 1 and Tier 2 cities in India. But why is this classification done, and what makes one tier different from the other?
The tier classification of cities in India is done based on several socio-economic factors like infrastructure, urban amenities, population size and economic development. India's tiered structure is significant to understand the varying degrees of development and urbanisation across the nation. The Tier 1 cities are talked about the most and grab the spotlight. However, Tier 2 of this classification also deserves attention as they significantly contribute to transforming India's urban landscape. These cities are usually overshadowed by their upper counterparts. They are scattered across the country and include some of the most vibrant and developed centres of India. Hence, it's high time we delve deeper into the untapped potential of the Tier 2 cities and know more about them.
In this comprehensive guide by the Home4us team, we will take you on a journey to unravel and explore the hidden gems of India. It will unveil the untold story of Tier 2 cities. From the cultural hubs echoing with traditions to the bustling streets of commerce, this post will allow you to navigate the diverse landscapes of Tier 2 cities in India. Before listing these cities, we will briefly discuss the Tier classification and different types of tiers. So, start reading below to learn it all.
What is Tier classification?
Tier classification is a system of categorising cities in India based on varying socio-economic factors. Some of these factors include economic development, population density and infrastructure. Majorly, the Tier classification involves four Tiers- Tier 1, Tier 2, Tier 3 and Tier 4. The first includes the country's biggest and most populated cities, while Tier 2 and 3 include smaller cities and towns.
Although Tier classification is useful for several reasons, one of the most crucial is that it allows us to identify scalable real estate investment opportunities. Regarding the real estate in these cities, Tier 1 cities charge the highest property transfer charges compared to other cities in India.
As you now have a brief idea about the tier classification of cities in India, let us move on to the next section of this blog, which will introduce you to the different tiers of this categorisation.
Types of Tiers
The Tier classification classifies the cities of India into four tiers, as listed below.
Tier 1
Cities with a population of one lakh or more are included in Tier 1. These cities are known to be the most developed and populated ones in the country. They offer the best lifestyle to the citizens. Therefore, they are the prime locations to live and work in India.
Tier 2
Tier 2 includes cities with populations ranging anywhere between fifty-one thousand and one lakh. These cities are the fastest-growing ones in the nation. The lifestyle offered by Tier 2 cities in India is almost the same as that offered in Tier 1 cities. However, they lack a little bit in terms of infrastructure, development and facilities as compared to the Tier 1 cities.
Tier 3
Compared to Tier 1 and 2 cities, the Tier 3 cities are underdeveloped. These cities need better money investment and Government initiatives for development and to offer a better lifestyle to the citizens.
Tier 4
Tier 4 includes villages and small towns that need huge investments. These villages and towns do not have urban facilities and infrastructure.
After the basics, let's move on to this blog's next and most crucial section, which will introduce you to all the Tier 2 cities.
Tier 2 Cities in India
The vibrant landscape of India celebrates the Tier 2 cities as rising stars. These cities are growing rapidly in terms of infrastructure, population and development. They are not as developed as Tier 1 cities. However, their contribution to making India a thriving economic hub is significant.
The Tier 2 cities in India witness rapid growth due to their robust industrial foundations, burgeoning populations and upgraded infrastructure. These cities are also becoming popular among tourists as they offer suitable resources for travellers to explore the beauty of these hidden gems. Tier 2 cities have the best facilities for their residents, like housing and educational and healthcare institutions.
Emerging as significant contributors to the nation's economy, the Tier 2 cities are increasingly becoming crucial for the country's overall development. They offer their residents attractive business and job opportunities, holding great potential for their future. Such factors make these cities a desirable destination for young professionals to live a life full of career opportunities and modern lifestyle facilities.
The next section of this post will list all the Tier 2 cities and describe each of them briefly.
List of Tier 2 cities in India
The Government of India has classified around 100 cities as Tier 2 cities. Below is a list of the best Tier 2 cities in India.
Amritsar
Amritsar is one of the most popular Tier 2 cities in India. Housing the beautiful Golden Temple, this city's main business is tourism. Its well-developed infrastructure and economic development classifies it as a Tier 2 city. Amritsar is a major tourist destination in India. It enjoys great tourist footfall from around the world and different parts of the country. In addition to tourism, the city also contributes to the country's economy with its small-scale businesses.
Bhopal
Another Tier 2 city is Bhopal. The capital of Madhya Pradesh boasts moderate infrastructural and economic development. Over the past few years, Bhopal has seen rapid growth in various sectors like healthcare and education. It maintains a historical significance, cultural richness and comfortable lifestyle. As a result, Bhopal is a crucial regional centre in the urban landscape of India. However, it lacks bustling business and commercial activities like Tier 1 cities.
Bhubaneswar
Odisha's capital, Bhubaneswar, is next on the list. Several factors, like its cultural and historical significance, contribute to classifying this city as a Tier 2 city in India. However, in addition to this, the city is also known for its infrastructure and economic development. It is experiencing rapid growth in various sectors. However, it lacks robustness in terms of corporate presence and industrialisation. The slow pace of urbanisation witnessed here places the city under Tier 2 classification.
Chandigarh
Chandigarh is an architecturally modern city classified as a Tier 2 city in India. It has a well-planned infrastructure and boasts rapid industrial and economic growth. However, even after being the capital of two states, Haryana and Punjab, Chandigarh cannot match the economy and overall development of Tier 1 cities. The population density is also lower here than in the metropolises. However, people from all across the country are attracted to settle here due to ample job opportunities and a high quality of life.
Gurugram
Being the most popular city of Haryana, Gurugram has always been under attention. Emerging as a significant IT hub, this city has become a dream destination for businesses and professionals to take their professional future to high levels. While accessing great business and career opportunities, the residents of this city also relish a high quality of life due to the easily available amenities. The city has witnessed substantial growth over the years. Its Government is constantly taking initiatives to develop its infrastructure even more. Gurugram is also developing rapidly due to its great connectivity to the National Capital- Delhi.
Ghaziabad
Boasting a perfect blend of modern infrastructure and traditional charm, Ghaziabad is one of the fastest-developing Tier 2 cities in India. It is recognised for its growing IT sector, diverse manufacturing industries and educational institutions. It is also witnessing a surge in the development of the real estate sector due to its increasing significance in the regional economy. The city offers a perfect lifestyle to the residents by combining contemporary amenities with historical charm.
Lucknow
When listing the best Tier 2 cities in India, leaving Lucknow out of the list is not an option. The two principles of this city- manners and hospitality make it a popular destination to live and work in India. In addition, it is a major tourist spot in the country, boosting the city's economy. From beautiful gardens to historical monuments and buildings, Lucknow is one of the best cities in India for tourists to explore the country's rich culture.
Jaipur
With its great connection to metro cities like Delhi and Gurgaon, Jaipur is developing at full pace. This rapid development has included the capital city of Rajasthan in the list of Tier 2 cities. Jaipur boasts several areas contributing to the country's economic growth, from a thriving IT sector to diverse manufacturing industries. The Government also takes initiatives like metro network development to make Jaipur well-planned.
Surat
Renowned for its economic dynamism and vibrant culture, Surat is next on this list of India's Tier 2 cities. The Diamond City of India is a significant hub for India's global diamond polishing industry. Surat is also known for its thriving textile sector, a major contributor to the country's economy. Its rapid urbanisation and entrepreneurial spirit make it one of the country's most popular Tier 2 cities.
Thiruvananthapuram
The City of Lord Anatha, Thiruvananthapuram, is also considered a Tier 2 city in India. It is the capital city of Kerala, which is witnessing rapid growth and urbanisation. Located along the southwestern coast of India, this city is known for its rich culture, colonial architecture and historic places. However, the city is much more than this now as it boasts a thriving IT sector, attracting professionals from all across the country to access great job opportunities.
Summing up
India is a land of diversity, which can be experienced in its different cities. From extremely developed cities like Mumbai to small villages, the country is divided into different parts, and to make this classification easier, the Government uses the tier system. In this blog, we have introduced you to only the ten best Tier 2 cities in India out of around 100. If you wish to explore real estate opportunities in these cities or the Tier 1 cities of India, explore our real estate website for great options.