The emergence of tier-2 and -3 cities is significant for the growth of the country’s economy as it ensures continuity and rationalisation of business over a period.
Businesses, on the other hand, are looking at identifying other suitable locations to setup or expand, as they provide the advantage of either lower production and operation costs and access to better resources or to avail of better infrastructure and/or benefits of favourable government policies. These emerging locations represent the possible growth trajectory India’s economy will follow in the next few years.
The growth in these cities will be led by primary sectors such as metallurgy and power, though services and manufacturing will play a crucial role in creating a more holistic socio-economic environment in these cities.
However, the most noteworthy aspect is that most of these locations have already identified their niche in certain primary and secondary sector verticals and are strategically poised for expansion into the services sector.
