India Report on Tier II and Tier III Cities in India

Title	Date	No of pages
Tier II and III Cities in India	DEC 2008	14
The Tier II and Tier III cities in India have tremendous potential for firms in the Outsourcing, IT Offshoring, Retail and Real Estate Development sectors. Big names from IT and retail have drawn up plans to set up shop in these Tier II and Tier III cities. But they will also face significant challenges as these Tier II and Tier III cities gear up for some serious action. This report presents: Brief overview of the growth, the opportunities and challenges for firms looking at investing in Tier II and Tier III cities Promising Tier II and Tier III cities Investors in Tier II and Tier III cities Types of Industries/Sectors suited for Tier II and Tier III cities Government Policy for supporting investment The report will be useful to: Executives in the retail, outsourcing and real estate industries Investors Research and Management Students Social and Development Economists US$20 Read a Summary Read an Excerpt

Summary

With GDP growth predicted to fairly traipse along at 8% over this decade, India is set to reap the benefits of rapid development. And the good news is that this time round, the good cheer is likely to spread over a wider geographical area covering smaller cities and towns. A variety of businesses – retail, outsourcing, IT and real estate investments and development – are eyeing the Tier II and Tier III cities in India as highly attractive destinations.

As a result, most of the development is expected in the tier II and III cities, which is really where the teeming Indian middle class lives. Be it in terms of education – several are home to some good quality universities that produce the thousands of graduates and engineers; or in terms of employment – with outsourcing, IT and retail gunning for these smaller cities in search of space or customers or employees or all of the above.

The government is also taking an active interest in promoting these cities as investment options to decongest Tier I cities and for more uniform development.

Evidently companies are going there because they see potential. But there are challenges as well. Just what kind of development can these cities expect to see? Who is going there and why? How will this impact the regular guy on the street? Is there really some potential in these cities? Surely there must be some challenges? This report tries to address some of these questions.

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