• February 3, 2023
Tier 2 Cities in India

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India’s tier-2 cities are developing rapidly and are home to several industrial clusters and startup hubs, particularly in the IT, manufacturing, and export sectors.

Termed the “reversal of talent movement,” many urban professionals in India are relocating jobs in tier-2 cities to seek better career opportunities, benefit from lower living costs, and now–access to cleaner air.

Several multinational companies, including HCL, Infosys, Wipro, and Ericsson, have expanded their operations/jobs in tier-2 cities due to the availability of talent, infrastructure, cheaper real estate, and the low cost of setting up.

It is important to note that Indian cities are classified into tiers– 1, 2, and 3–based on their population size, and this may not necessarily indicate their level of economic development.

In the last three to five years, many of these cities have become preferred destinations for urban professionals in India as they value the conditions of liveability–cleaner air and a green environment–over some of the concrete benefits of tier-1 cities. However, tier-2 cities are themselves expanding and improving their transport connectivity and infrastructure–further proving attractive to both businesses and talent.

For their part, organizations setting up jobs in tier-2 cities saves on costs as salary structures can be more competitive and the cost to the company (CTC) per employee is less than in tier-1 cities. Employees, too, save more because of cheaper living costs.

According to the Experis IT Employment Outlook Survey (EITEOS) conducted in December 2019, employers in tier-2 cities such as Chandigarh, Vadodra, Kochi, Lucknow, Patna, Kanpur, Coimbatore, and Jaipur are looking to hire more talent in the near term.

In this article, we spotlight the top 5 tier-2 cities foreign entities should be looking at when making their hiring decisions. This list is based on the analysis provided by the LinkedIn India Workforce Report 2018 and other surveys conducted by career and recruitment platforms in India.

1. Chandigarh

Chandigarh, a union territory of India, is the joint capital of the northern states of Punjab and Haryana. It is India’s first planned city, and has a strong transport network, established industrial townships, and is a hub for commercial and business activity.

Chandigarh is ranked at the top along with Kerala in Niti Aayog’s SDG India Index, which evaluates the progress of states and union territories based on social, economic, and environmental parameters.

chandigarh

2. Vadodara

The third largest city in the state of Gujarat, Vadodara was on the list of the top 10 Indian cities attracting talent, according to the LinkedIn India Workforce Report 2018. Major industries in the city are petrochemicals, engineering, chemicals, pharmaceuticals, plastics, IT, and foreign exchange services.

According to an August 2019 survey by jobs portal Monster, hiring in Vadodara went up by 11% in the first half of 2019. Talent recruitment is high for IT, civil, and mechanical engineers, web developers, and quality assurance managers, and in the jewelry sector.

3. Jaipur

jaipurCapital of the state of Rajasthan, Jaipur is an important micro, small, and medium enterprises (SME) cluster in north India. Established industries in the area include tourism, textile, food and beverages, tobacco, mining, automotive and bicycle manufacturing, and gems and jewelry. However, in recent years, Jaipur has been pushing to develop into an IT hub in the country and received approval in 2018 to set up an IT/ITeS SEZ.

In terms of hiring, the top sectors are IT, travel and tourism, outsourcing services, financial services, and mining industries, particularly for entry-level and middle-management positions.

4. Lucknow

 

Lucknow, the capital of India’s most populous state Uttar Pradesh, is a renowned historical cultural center. However, over the last six years, it has been steadily evolving into a successful IT hub. This is due to major investments made by leading technology MNCs–TCS and HCL Technologies.

As of 2016, HCL had committed to invest about 1,500 crore rupees (US$15 billion) to develop an IT city in Lucknow. The project is classified as establishing a special economic zone (SEZ) and aims to be a sustainable technology hub. It is expected that the SEZ will create approximately 25,000 job opportunities.

5. Kochi (Cochin)

Kochi (also known as Cochin), an important port city in the southernmost state of Kerala, is another tier-2 city that has fast become an IT hub. The state government has established an info park that houses 392 companies, including major MNCs like TCS, HCL, Wipro, Ernst & Young, and Cognizant, which employed around 42,000 professionals as of 2018.

It is also expected that tier-2 cities like Kochi will slowly develop into start-up hubs, resulting in the creation of more dispersed regional jobs and investment opportunities. Reputed educational institutions in the city include Cochin University of Science and Technology, Cochin College, St. Teresa’s College, Kerala University of Fisheries and Ocean Studies, Amrita Institute of Medical Sciences and Research Centre, Rajagiri Business School, and SCMS School of Technology and Management.

Staying close to family is the biggest plus point for young talent. Nothing beats working for a global organization with a high-end job from the comfort of their hometown. Financial advantage is another big factor that drives this decision – the cost of living in these cities is considerably lower. With the development in infrastructure and e-commerce, young talent is now enjoying a high standard of living.

Apart from a better quality of life in terms of lower cost of living compared to cities, there is the ability to contribute to the development and wellness of their native towns and villages. People in these Tier-2/3 cities are eager to learn, they adjust quite quickly, and best of all – are humble and grounded, while not lagging when it comes to using digital platforms/courses to stay current and relevant in today’s market.

Another motive is to ensure that employees do not need to leave their hometowns in search of jobs. We are very happy with the talent we have discovered in towns such as Madurai and Nagpur. Our employees working out of these cities are servicing our international clients including Fortune 500s, demonstrating the talent that these cities have.

If you are looking for employment opportunities in the jewelry, gems, and metals industry across jobs in tier-2/3 cities in India, follow and subscribe to our page.

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