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Bridging India Divide: Top 5 Tier- 2 Cities to Focus On 

By: Sanjeev Arora, director, 360 Realtors

The growth and progress of India is no more just limited to the major metros. The Tier-2 India is also playing an elevated role in the growth engine of the country. Government understands the importance of promoting Tier 2 and 3 cities to achieve a more equitable, balanced, and sustainable growth. As a part of India’s USD 1.4 trillion infrastructure development grid, a large amount are funds are directed to smaller cities to develop new townships, industrial corridors, multi modal logistic parks, business parks, airports, etc.

Mentioned below are the five major Tier-2 cities that we can look into:         

Lucknow: The city of Nawabs is also emerging as key economic hub in North India. Lucknow is gaining prominence as an IT, business, manufacturing, and real estate hub. The government is aggressively building infrastructure in Lucknow in the form of metro lines, green corridors, airport capacity enhancement, ring roads, etc. It is part of the UP defense corridor alongside Jhansi, Aligarh, Agra, and Kanpur. More than 50,000 crores have been directed towards the ambitious defense corridor. As a part of the corridor, a JV has been inked between Russia and India to develop Brahmos missiles. Lucknow is also an emergent IT hub with host of tech companies such as TCS, Amazon, HCL, etc.

Faridabad: Once the oldest satellite town of Delhi NCR, Faridabad did falter in the race against Gurgaon and Noida. However, Faridabad which is equidistant with Gurgaon, Delhi, and Noida is once again gaining momentum. A new bridge has been built over the Yamuna expressway, which has reduced the distance between Faridabad and Greater Noida to~ 20 mins. The project will bring Faridabad closer to Jewar airport. Faridabad is closely linked to Delhi Mumbai expressway, which will give big boost to the industries in Faridabad- Sohna stretch. The Delhi metro has been extended to Bhallabgarh, which has brought the satellite town close to the national capital.

Vizag: The second largest city in the eastern coast of India after Chennai, Vizag is one of the biggest economies with a total size of USD 16 billion.  The coastal city which is now the capital of Andhra Pradesh (AP) is home to a wide range of industries such as shipyards, mining, heavy engineering, paper, rubber, agribusiness, etc. Vizag is also witnessing uptick in IT and ITeS with around ~ 250 IT and media companies.


The central government in partnership with state development agencies is investing heavily in the Vizag’s infrastructure. Work has begun on Inr 4500 crore airport with an estimated capacity of 6.3 million.  A ~ 80km extensive metro line has been proposed, for which DPR has been submitted. Work has commenced on Inr 3750 crore economic corridor between Vizag and Raipur, which can positively impact the lives of around 3000 villages and small towns.

Ayodhya: After the inauguration of the Ram Mandir, there is a tremendous spotlight on the temple town. The city of Ayodhya is becoming a major potential hub for real estate, tourism, hospitality, second homes, etc. There are 75+ big hotel projects, which are slated to enter the market in next 3-4 years. To transform Ayodhya as a spiritual-cum-religious center of global repute, GOI is investing heavily to build new airports, railway stations, shopping complexes, tourism centers, urban beautification, etc. As a part of Ayodhya Master Plan, a total fund of Inr 85,000 crores has been outlined to invest in infrastructure, civic amenities, social welfare, townships, etc. Already work is going on 178 projects worth Inr 30,000 crores.

Kochi: The coastal city of Kochi is a thriving ground for IT industry and tourism sector. It homes one of the biggest ports in India, playing a major role in Exim trade of the country. Kochi is India’s first tier-2 cities which has received a metro line. Over 1100 crores has been directed towards developing a new terminal at the international airport.