Tier 2 Cities In India Pdf Download
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The classification of Indian cities is a ranking system used by the Government of India to allocate House Rent Allowance (HRA) to public servants employed in cities in India. HRA is also used by the Indian Revenue Service (IRS) to provide income tax exemptions. Cities are classified on the basis of their population, as recommended by the Sixth Central Pay Finance.[1] Under the latest HRA city ranking scheme, most popular media and culture considers only Tier-X cities to be metropolitan in nature. These eight cities are considered India's "metros".
Under the recommendation of the Seventh Central Pay Commission, the CCA classification was abolished in 2008. The earlier HRA classification of cities was changed from A-1 to X; A, B-1, and B-2 to Y; and C and unclassified cities to Z.[2][3][4] X, Y, and Z are more commonly known as Tier-1, Tier-2, and Tier-3 cities, respectively. There are eight X cities and ninety seven Y cities.
The cities were classified as follows before the Sixth Central Pay Commission's recommendations were followed in 2008.[8] This classification was initially based on the recommendations of the Fifth Central Pay Commission of India in 1997.[8] Chennai, New Delhi, Kolkata, and Mumbai were classified as A-1 cities.[9] City statuses were later revised based on the results of the 2001 Census of India.[8] Hyderabad was upgraded from A to A-1 status on 31 August 2007, and the same with Bangalore on 21 September 2007.[9] The CCA classification was abolished in 2008.
Technical talent, investor confidence and infrastructure in Bangalore, Mumbai and the National Capital Region encourage startups in ecommerce, technology, logistics, payments and retail. But, cities such as Jaipur, Ahmedabad, Pune, Chennai and Vizag are quickly becoming specialized hubs for the growth of key industries such as fintech, SaaS, agritech and deep tech.
Incuspaze is one such organization aiming to establish a strong startup ecosystem in Tier 2 cities. With centres launched in Lucknow, Jaipur, Cochin and Indore, the founders have mapped the development of centres across 30 Tier 2 cities, with a focus on nurturing startups that are developing products using Internet of Things (IoT) and artificial intelligence.
Accordingly, foreign companies that are interested in locating in a tier 2 or tier 3 city should carefully consider their options: lower tier cities offer comparatively cheap labor and affordable real estate, but setting up in these cities also comes with challenges.
According to the government, cities with a population in the range of 50,000 to 100,000 are classified as tier 2 cities, while those with a population of 20,000 to 50,000 are classified as tier 3 cities.
Moreover, the pandemic has accelerated the movement of metropolitan dwellers to tier 2 and tier 3 cities to get away from polluted and crowded environments and access affordable housing and competitive education and job opportunities. Some of the emerging real estate markets with a robust housing segment include Kochi, Indore, Chandigarh, Lucknow, Amritsar, Jaipur, Ludhiana, among others.
India Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in Delhi and Mumbai. Readers may write to in...@dezshira.com for more support on doing business in in India.
The present study focuses on the impact of early imposed lockdowns and following unlocking phases on the status of air quality in six Tier-I and nine Tier-II cities of India as compared to the pre-lockdown measures. Furthermore, the study highlights the possible correlation of air quality index (AQI) with the initial trend of COVID-19 issues including the vaccination cases. Based on the statistical data analysis, we observed that the long-term averages for representing the short-term pre-lockdown conditions can impose a healing effect to the observed anomalies in air pollution data. However, the reduction in air pollution during the imposed lockdown series was only a phenomenal consequence, and the trends started reversing during the later phases of partial unlocking, where the correlation showed reversing trends. Being a yearly averaged parameter, the marginal reductions in the exceedance factor (EF) alone could not dictate air quality compared to the AQI. As there is incoherent variability in the pollutant distributions among the cities during various phases of the study, the trend analysis served as a preferable criterion to choose the preferred sources of variations. Based on the results, the correlation analysis revealed that air quality expressed in terms of AQI can act as an important precursor to estimate the critical phase of COVID-19 spread and the effectiveness of various control measures taken during each phase. Based on our proposed ranking, Kolkata and Patna are ranked first in the Tier-I and Tier-II cities respectively according to their responsiveness to the various institutionalized restrictions in terms of air quality parameters.
In the recent past, many schools have relied on a handful of Indian cities for the bulk of their recruiting efforts. Between 2008 and 2012, for instance, the vast majority of student visas were allocated to applicants from traditional recruitment hubs like Hyderabad, Mumbai, Chennai, Bangalore, and Kolkata.
Located in Eastern India, Bhubaneswar is the capital city of the state of Odisha. On the map, it lies between two major cities which have proven to be reliable senders of students to the U.S.: Hyderabad, which is situated about 650 miles to the southwest, and Kolkata, which sits less than 300 miles to the northeast.
The recruitment market in Chandigarh is more mature than in some Tier II cities, but it is one that merits a deeper look from U.S. institutions seeking to recruit for STEM programs, business, and design programs alike.
Earlier, the concentration was on big metropolitan cities like Chennai, Delhi, Mumbai, Bangalore ruling the Indian outsourcing industry. But, now the landscape is changing, with tier 2 cities eclipsing over 35 Indian big cities spanning 16 states. Today, smaller cities are joining the outsourcing business, with the same skill sets, expertise, and resources that the big Indian cities offer.
Not to forget, NASSCOM (National Association of Software and Services Companies) and the Indian government have been promoting smaller Indian cities to ensure equal opportunities and sustainable development of the country and building a resurgent IT country. In other words, smaller towns have gained popularity as an outsourcing destination because of ample space, skilled resources, lower attrition rates, lower cost of living, and lesser cut-throat competition, ensuring business growth and success.
Tier 1 Indian cities established companies have a large number of resources, making it easier to meet the clients' needs. Whether the project complexities require 100+ professionals to work on their project or some specific resources solely are needed for a particular time, the company offers different engagement models to address the needs.
For instance, if a complex project requires 200+ professionals to work dedicatedly on it, an established company in a tier 1 city can meet these requirements easily as they have a huge in-house team. Besides, the experts are well-versed with the latest technology stacks to build a bespoke digital solution.
However, tier 1 cities face stiff competition for both back-end and front-end outsourcing and setting an ODC from emerging destinations. Several companies have chosen India tier 2 cities looking for greener pastures.
Tier 2 cities are cost-effective in outsourcing and having an ODC in India. Investing money in hiring companies offering ODC set up in Tier 2 cities is the best idea because several companies started their business by investing a smaller amount of capital, and the profit earned was manifold.
Besides, infrastructure is also imperative to set up any business. It eclipses the cost of living, office space expenditure, and good infrastructure units. And, in comparison to tier 1 cities, tier 2 cities, the cost of infrastructure is low, along with office space rents. Initially, one can easily set up a business in minimum space with minimal rent, and when the business kicks off, one can easily think big and scale as per the needs.
Currently, attrition is a big challenge. Whether voluntarily or involuntarily, the companies located in tier 1 cities face a higher attrition rate than tier 2 cities, marking a difference of 10% in attrition rate. Attrition is one of the biggest challenges as it increases the high cost of replacements and greater waiting time leading to loss of revenue.
Considering the difference, many IT companies have already established themselves in 27 tier-2 Indian cities, while some like TCS, TechMahindra, and others are migrating to these locations. To be precise, tier 2 cities like Chandigarh, Coimbatore, Kochi have the highest market activity and scale of operations, therefore offering sizable experienced pools for offshore IT services delivery.
In tier 2 cities, the attrition rate is quite low as the firms established there hire good local resources with the intention of a long-term relationship. This kind of approach helps to hold the team for the long.
In big cities, the usual commuting time varies from 2-4 hours whereas, in tier 2 cities, the workplace is just at a short walk away. This time difference makes tier 2 cities a good pick as people living there are ready to work extra hours (9-10 productive hours) to deliver milestones on time.
IT professionals must have various skills to perform multiple job responsibilities. Precisely, the IT professionals in tier 2 city usually have experience with coding languages like Python, Javascript, HTML, CSS (Cascading Style Sheets) to source control management and debugging, marking the potential to generate a more extensive base.
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