Outlook Money
Cities in India are classified into tiers based on population, economy, infrastructure, and administrative importance. The system helps guide investment and policy decisions.
Tier status depends on three things: population size, economic strength, and presence of key institutions like airports, courts, and secretariats.
Bangalore, Delhi, Chennai, Hyderabad, Mumbai, Pune, Kolkata, Ahmedabad are Tier I. They are metropolitan hubs with large populations, strong economies, and major infrastructure.
Cities like Jaipur, Lucknow, Surat, Visakhapatnam, Bhopal, and Amritsar are Tier II. They are growing regional centers with mid-level populations and economies.
Tier III cities include Etawah, Roorkee, Madurai, Nashik, and Vijayawada. They have smaller populations but can grow with industrial parks, better transport, or digital connectivity.
Tier IV towns like Banswara, Gangtok, Kalyani, and Kapurthala are small, with 10,000–20,000 people. They need basic infrastructure like roads, water, and electricity.
Tiers guide investment, infrastructure projects, and policies. Cities can rise in tier with the right development and planning.
City tiers are based on arithmetic and administrative importance. Understanding them helps plan growth and resources across India.