RBI classifies cities into 6 tiers, based upon the number of population. Tier 2 cities have a population ranging between 50,000 and 99,999. However, classification of cities depend upon many other factors like level of infrastructure, public utilities and average income levels of the population. Tier 2 cities fall between the highly developed Tier 1 cities and developing Tier 3 cities. Tier 2 cities have better infrastructure and connectivity and a higher cost of living as compared to Tier 3 cities. Moreover, Tier 2 cities are in a position to turn into Tier 1 cities within a varying periods of time. Tier 2 cities are emerging cities which are swiftly turning into a hub of real estate, industry and consumerism. Let’s have a look at the top 10 tier 2 cities in India for the year 2025.
1 Lucknow
Lucknow, the capital city of the state of Uttar Pradesh, is a rapidly emerging Tier 2 city with a high population growth rate and increasing investments across multiple sectors. The city is home to multiple educational and other institutions of repute which are contributing to the growth of the city.
Improvements in multiple public utility sectors like healthcare, roads, education and more have increased the ease of living levels in Lucknow. Moreover, metro expansion is also a positive development for the city.
2. Indore
Indore is the largest city in the state of Madhya Pradesh has drastically improved in terms of living standards in the recent years. It is emerged as an educational hub and among the favoured destinations for students from other parts of Madhya Pradesh and India. The city is also a major corporate and industrial centre with many national and global companies having a good presence here.
Indore has witnessed rapid growth in the real estate sector. The demand for residential and commercial properties is high in the city.
3. Nagpur
Nagpur is a major tier 2 city in the state of Maharashtra. It has witnessed rapid infrastructural advancements in the recent years which has also given a big boost to its real estate sector, with the presence of many grade A pan-India developers in the city. Upcoming big-ticket infrastructure projects like metro expansion and an international airport are likely to give a big boost to the economy of Nagpur.
Nagpur also scores high on connectivity with infrastructure like Samruddhi Mahamarg Expressway connecting Nagpur with Mumbai. The city is also the headquarters of Central Railways.
4. Mysore
Mysore, a city in the state of Karnataka, is known for its clean and green environment, and heritage structures like the Mysore Palace. It is a thriving hub for multiple industries and sectors, such as healthcare, education and tourism. The city has undergone rapid improvements in infrastructure and quality of living on the back of many initiatives like the Smart City Project of the Government of India.
Mysore attracts people in droves from adjoining towns and villages which boosts the real estate sector of this city.
5. Guwahati
Guwahati is the largest city in North Eastern part of India and a vital trade and commerce hub in the region. The city has particularly witnessed a retail boom which has brought a large number of domestic and international brands across segments like lifestyle, apparel, entertainment and F&B to the consumers in the city.
Smart City project is improving the infrastructure of Guwahati while preserving the green spaces. The upcoming metro rail project is set to revolutionise urban transport in the city.
6. Visakhapatnam
Visakhapatnam is a major city in the state of Andhra Pradesh, known for its picturesque beaches and hills. The city is making rapid advancements in industrial and commercial development, and its unique position along the coastline is also giving a fillip to the local economy. Major companies located in Visakhapatnam include Hindustan Shipyard, Hindustan Petroleum Corporation and Bharat Heavy Plates and Vessels.
Visakhapatnam is the second emerging business hub in South India, after Hyderabad. The city also has a high air passenger index.
7. Vadodara
Vadodara is known as the cultural capital of the state of Gujarat, and is among the rapidly emerging cities in India. It is an educational hub with the presence of multiple institutions, including IIIT and India’s first railway university. Moreover, the city is also an emerging IT hub with a good presence of many renowned IT companies. Pharmaceutical and chemical industries also contribute to the local economy.
Vadodara is also among the safest cities in India and affords a high quality of living. It is well connected to many major cities, including Mumbai.
8. Kochi
Kochi is a coastal city located in the state of Kerala. It is emerging as a favoured destination for IT companies and startups, and has a good industrial base in manufacturing and textile sectors. Infrastructure development has received a boost in recent years with projects like smart roads undertaken under the auspices of Cochin Smart Mission Limited.
Development of Kochi Water Metro and its ongoing expansion has given a fillip to the transportation infrastructure of the city.
9. Madurai
Madurai is projected to be among the major hubs and drivers of the economy of Tamil Nadu in the coming years. Major industries in Madurai are textile and rubber manufacturing, and both these sectors are set to receive huge investments. The city is also an educational hub with the presence of multiple educational institutions, including Madurai Medical College, Madurai Law College and Agricultural College and Research Institute.
10. Bilaspur
Bilaspur is a major hub of commercial and business activities in Northeast part of Chhattisgarh. It is also the headquarters of the South East Central Railway Zone. The city was selected for Smart City Mission which was launched in the year 2015 by the Ministry of Urban Development of the Government of India. Bilaspur has seen massive improvements in multiple aspects, such as public transport, water supply, roads, green spaces and more, in the recent years.
Conclusion
Tier 2 cities provide better employment opportunities than tier 3 cities due to more economic activities. Moreover, decent infrastructure in tier 2 cities makes life more comfortable at moderate costs.
I’m Hina Khan, working as a writer at Worldblaze.in blog. I love dancing and listening punjabi music. Here I’m sharing all the interesting stuffs that will definitely entertain you.