Why Do Tier 2 Cities Have More Innovation Potential Than Tier 1 Cities in India?

We live in an increasingly low-trust world, for our morale is suffering and our engagements in dismal-what we most lack are inspiration, consistency, and trust. We usually witness saturation and get stuck in the economic progress and counteract situations.

There are considerable Tier2 cities in India (Kanpur, Chandigarh, Pondicherry) where the population distribution is over 1 Million. It has been observed that in spite of small public investments in these cities, they are yielding a noticeable potential. Tier 2 cities are continuously emerging and the key factor that escalates the development and growth opportunities. However, the growth potential is very high. The 2 Tier cities move with positivity not only for their region but for the entire state with its effort to diverge the gravity on the metro which is deteriorating under the stringent time frame and substructure. Resources have been weaving a triumph story in various fields; people from Tier II have some inherent advantages like owning basic amenities, ample convenience of land and accomplished labour, enhanced dissemination of property & asset.

As one observes an inundation in the commercial growth and structure opportunities of the foremost cities of India, concurrently small towns in Tier II cities have a population of around one million — they have been found to deliver a successful commercial progress in the previous decade and have a great potential across all verticals.

A number of fortune 500 companies which include Commercial firms, IT companies, Real property organizations, Automobile factories, Water Plants have decided to shift to Tier II cities. This is primarily because of cheaper labour and abundance of people resources.

Obviously, a number of key factors drive the innovation & development growth of all commercial and corporate segments in the rural zone. People here believe in — foot-to-work conception, worth way of life, exposure to media, the beginning of various IT companies and the augmented attraction to retail. We all have witnessed a drastic improvisation. Superior quality asset guarding and property selections in towns such as Nagpur, parts of Chandigarh, Iconic Agra, Crafts city Lucknow and City of Lakes –Udaipur are all converging towards overall innovation and development. Most importantly, these cities provide huge employment opportunities since the world is moving towards these low-cost regions to set up industries, plants, factories, and manufacturing units. This gives rise to these cities offers affordable rental and housing facilities which works absolutely well for mid-range people who migrate to such cities for job opportunities.

Irrespective of the fact, whether it is a Financial Bank most of us are inclined to the way small cities for larger benefits and higher ROI (return on investment). When cities such as Ahmedabad and Pune are concerned –they offer a huge array of benefits since they house a multitude of institutes. Smaller cities attract a large number of people as the rentals fits one’s budget and the cost of living and maintenance is way below compared to that of Tier 1 cities.

Various notable towns in Gujarat such as Ahmadabad, Vadodara itself has been progressing. The air travel facility between these cities will open up doors of opportunities.

Most of the hospitality segment envisages great development in these cities. Various factors combine making these towns one of the most sought-after investment areas.

Practical observation verifies the fact that Tier 1 cities are all overcrowded and hence people residing in these cities are forced to move out to open space with large infrastructure, close to nature. Cities like Jaipur, Nasik, Pune, and Chandigarh are hot favourites since there are global investors who create dream homes here. In addition, Tier 2 cities prove ideal for investors and non-resident Indians, who love to build lavish bungalows spread across acres of land which is impossible in Tier 1 cities.

The government of India has been actively supporting these Tier 2 cities and have laid down various policies to upgrade. Plans for building roads, airport, hospitals are in priority.Residential complexes, corporate houses, hotels are already been constructed in full swing. 

This growth and progress has certainly helped modernize rural India and contributed to the overall development of the country especially Tier 2 cities and have infused innovation through skilled planning.