Know About Tier Cities and their Classifications
The government divides tier cities in India into tiers I, II, III, and IV based on several characteristics, including population To implement various social and economic plans as well as taxes determination. The development of
market expansion and other strategic initiatives for business is facilitated by such categorization. The definitions of these classifications, the cities mentioned under various categories, and other topics are covered on this page.
Regarding the categorization of cities, there are two schools of thinking. One divides them into urban, rural, and semi urban geographies, while the other divides them according to their population and commercial activity. Here's a closer look at how Indian cities are divided into Tier I and Tier II:
What are Tier-I Cities?
The Reserve Bank of India (RBI) categorizes the population of tier 1 cities in India as 1 lakh or more as of the 2001 census. These cities have well-established commercial districts, civic and social facilities, and real estate markets. Their real estate markets are the most expensive in the nation.
Sl No
Tier-I cities 1 Bangalore
Delhi
Chennai
Hyderabad
Mumbai
Pune
What are Tier-II cities?
Tier 2 city in India is those with rapidly expanding or developing real estate markets. These are cities with steadily growing infrastructure and investments that have not yet reached their peak levels. With sustained growth, real estate prices typically increase in these markets. Compared to Tier I cities, they are less expensive. According to the RBI's classification, Tier-II cities are those with a population of 50,000–99,999 Sl No Tier-II cities
9 Kochi 10 Lucknow 11 Nagpur 12 Patna 13 Raipur 14 Surat 15 Visakhapatnam 16 Agra 17 Ajmer 18 Kanpur 19 Mysuru 20 Srinagar
What are Tier-III cities?
According to the RBI classification, tier III cities are those with a population between 20,000 and 49,999. On the other hand, they are cities with underdeveloped or non-existent commercial and residential real estate markets. For future expansion, they need more excellent infrastructure and investments.