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Know About Tier Cities and their Classifications

Admin 16 Nov 2022 201 Views
Knowledge

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 businesses 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, Tier II, Tier IIi, and Tier Iv:

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.

List of Tier 1 Cities in India

The Tier-I cities in India are as follows:


Sl No

Tier-I cities

1

Bangalore

2

Delhi

3

Chennai

4

Hyderabad

5

Mumbai

6

Pune

7

Kolkata

8

Ahmedabad

 

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.

List of Tier 2 Cities in India

The Tier-II cities in India are as follows:


Sl No

Tier-II cities

1

Amritsar

2

Bhopal

3

Bhubaneswar

4

Chandigarh

5

Faridabad

6

Ghaziabad

7

Jamshedpur

8

Jaipur

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.

List of Tier 3 Cities in India

The Tier-IIL cities in India are as follows:


Sl No

Tier-III cities

1

Etawah

2

Roorkee

3

Rajahmundry

4

Bhatinda

5

Hajipur

6

Rohtak

7

Hosur

8

Gandhinagar

9

Junagadh

10

Udaipur

What are Tier-IV cities?

The population of Tier-IV cities ranges from 10,000 to 19,999. They are either cities or small villages that demand significant infrastructural expenditures. Additionally, they barely engage in real estate and business.

List of Tier 4 Cities in India

The Tier-IV cities in India are as follows:


Sl No

Tier-IV cities

1

Banswara

2

Bhadreswar

3

Chilakaluripet

4

Datia

5

Gangtok

6

Kalyani

7

Kapurthala

8

Kasganj

9

Nagda

10

Sujangarh

 

List of Cities in India as per Population

The following is a list of India's most populous cities:

City

The Population as per Census 2011

Mumbai

1,24,42,373

Delhi

1,10,07,835

Bangalore

84,25,970

Hyderabad

68,09,970

Ahmedabad

55,70,585

Chennai

46,81,087

Kolkata

44,86,679

Surat

44,67,797

Pune

31,15,431

Jaipur

30,46,163

Lucknow

28,15,601

Kanpur

27,67,031

Nagpur

24,05,665

Indore

19,60,631

Thane

18,18,872

Bhopal

17,95,648

Visakhapatnam

17,30,320

Pimpri-Chinchwad

17,27,692

Patna

16,84,222

Vadodara

16,70,806

Ghaziabad

16,48,643

Ludhiana

16,18,879

Agra

15,85,704

Nashik

14,86,053

Faridabad

14,14,050

Meerut

13,05,429

Rajkot

12,86,678

Kalyan-Dombivli

12,47,327

Vasai-Virar

12,22,390

Varanasi

12,01,815

Srinagar

11,80,570

Aurangabad

11,75,116

Dhanbad

11,62,472

Amritsar

11,32,383

Navi Mumbai

11,20,547

Allahabad

11,12,544

Howrah

10,77,075

Ranchi

10,73,427

Gwalior

10,69,276

Jabalpur

10,55,525

Coimbatore

1,050,721 [5]

Vijayawada

10,34,358

Jodhpur

10,33,918

Madurai

10,17,865

Raipur

10,10,087

Kota[6]

10,01,694

Chandigarh

9,60,787

Guwahati

9,57,352

Solapur

9,51,558

HubliDharwad

9,43,788


How are Cities Classified in India?

The cities are divided into three groups following the recommendations of the Seventh Central Pay Commission:

 

● X: Formerly known as A-1, Tier I cities are nowadays.

● Y: Formerly A, B-1, and B-2 cities are currently considered Tier II cities.

● Z: Formerly referred to as C or unclassified cities, currently referred to as Tier III or IV cities

The House Rent Allowance (HRA) is a benefit provided to employees of the Government of India under this classification. There are 97 Tier II cities and 8 Tier 1 cities in total.

 Related Information Know Everything About Real Estate Online Marketplace 
How are Tiers of Cities Divided?

The following classification system is employed to delineate cities:

Tiers

Population

I

1 lakh or more

II

50,000 - 99,999

III

20,000 - 49,999

IV

10,000 - 19,999

V

5,000 - 9,999

VI

Below 5,000



Here is another classification scheme:

Classification

Population

Rural centre

Below 10,000

Semi-Urban centre

10,000 - 1 lakh

Urban centre

1 lakh - 10 lakh

Metropolitan centre

Above 10 lakh

FAQ’s
Q. What are tier-I and II cities?

The most prosperous tier 1 and tier 2 cities in India, with the most prominent inhabitants, home values, and business activity, are those in tier 1 cities in India. On these metrics, tier 2 cities in India are those with the fastest growth.

Q. What is the population of tier-III cities in India?

 The tier 3 cities in India have a population of 20,000 to 49,999.

Q. How many tier cities are there in India?

According to media sources, the country has more than 638,000 villages in addition to 8 Tier I cities, 26 Tier II cities, 33 Tier III cities, and over 5,000 Tier IV towns. India Distance Calculator from India Utilities.

About Author

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Jatin Dubey

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.