by Media Team
Posted on May 23, 2019 at 04:30 PM
We have often heard the terms Tier I, Tier II and Tier III cities of India which are categorised on the basis of population. The Tier I Cities are those highly commercialized metropolises with population of 10 Millions and above like Mumbai, Bangalore and Delhi NCR. The Tier II Cities are the next level down from the former having population of 5 to 10 Millions which are also the regional hubs of state capitals. Some of the Tier II Cities are Surat, Ahmedabad, Chandigarh, Mangalore and Pune among others. Then, the Tier III cities are those having a population of 2 to 5 Millions which usually comprise those cities that are en route to taking shape. Some of the examples of such cities include Indore, Bhopal, Rajkot, Bhubaneswar etc.
In these days, Tier II & Tier III cities are booming with excellent development. Majorities of such cities have immense potentials for economic growth as many industries are setting up their base in such regions. The availability of basic resources along with lower labor cost have encouraged more industrial development in such areas as compared to Tier I cities. What's more, the transportation facilities in such cities have also been improved with the construction of new bus corridors, airports, metros and flyovers; thereby adding value to the conveniences while making the lives more hassle-free.
The Tier II and Tier III cities, are the main focus for development in the eyes of the government as well; and that's why these cities have become the hubs of various government initiatives. Both the local and state government are encouraged to provide an array of infrastructural facilities so as to attract the industrial sectors ranging from pharmaceuticals, automotive, real estate, financial institutes, IT & ITES sectors among others. This will continue accelerating the growth of such cities whilst making them business heavens.
Thanks to the lower cost of construction, easy availability of land, affordable property values, improving amenities, better economic setup and most importantly, lower cost of living as compared to the Tier I cities that have made Tier II & Tier III cities the new chapters of development of the new India.
Here are some of the leading accelerators that make the Tier II & Tier III cities the best places for businesses to thrive!
Believe it or not, these cities have a great deal of potentials to progress. Following an array of success stories in various fields, such cities have already been blessed with ample land, fundamental amenities and not to mention favourable working condition in their own right. When the metro are being dwindled under the constraints of space, infrastructure and immense cost, the Tier II & Tier III cities act as a relief for the industries.
Availability of Skilled Labour
The talented minds hailing from Tier II and Tier III cities easily get an opportunity to work in their home state instead of migrating to Tier I cities in search of employment opportunities. With their presence in their area, established companies and even start-ups can reap the advantage of such workforce that too at lesser cost as compared to bigger cities. Hence, this will help both the employers and employees while supporting local economy.
Governments Dynamic Measures
The Indian Government has taken commendable measures in establishing positive working setup in Tier II and Tier III cities so as to encourage various institutions and industries to start their operations. Similarly, the government has also emphasized on physical infrastructure, transportation, health-care, educational and social facilities along with affordable housing in these cities.
A scheme named Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has undertaken massive city modernization, which has helped these cities with excellent opportunities. Then, Start-up India, Ujjawala Yojna and Pradhanmantri Awas Yojna have also enhanced the face of many parts of such cities so as to attract businesses and opportunities.
Such initiatives have tempted venture capitalist, incubators and accelerators in these cities to explore the business opportunities. In fact, some state government have introduced their own start-up policies backed by quite a many benefits such as incubation centers, IT infrastructure support, capital investment, legal facilities and R&D labs. Thanks to the government which have changed the face of these cities which in turn attract various industries like media, entertainment, real estate, IT and automobile and many more to help look for more scope in smaller cities.
New opportunities comes with new challenges, these cities equipped with at par or better manufacturing facilities, infrastructure and better costs cannot utilize the manufacturing capacity just for local consumption. This additional spare capacity is becoming a challenge, however it can be converted into an opportunity by connecting them with potential business partner who can further enhance their capacity utilization. www.shareconomy.in is trying to play catalyst role by publishing such facilities across the globe enabling them to showcase their capabilities and there by giving opportunity to both local manufacturer and the global sourcing to reap benefit out of it.
Ultimately in today's world Networking is Business and Business is Networking, How this aspiring cities can stay behind this journey towards progress