New Delhi, INDIA — India’s smaller and mid-sized urban centers — often called Tier-2 cities — are gaining ground as attractive places to live, work, and raise families, according to the Economic Survey 2025–26, released by the Government of India.
For decades, major metropolitan hubs like Delhi, Mumbai, and Bengaluru were widely considered the most desirable urban destinations in the country. However, rapid urbanization, congestion, pollution, and rising housing costs have sparked a shift in preferences among residents and migrants alike. Tier-2 cities, with their lower population density, improving infrastructure, and more manageable daily life, are now securing top spots in national livability rankings.
🏙️ Top 10 Livability Rankings for Indian Cities
The latest Ease of Living Index 2025, prepared by the Ministry of Housing and Urban Affairs and highlighted in the Economic Survey, lists the following top 10 Indian cities for livability:
- Pune – Maharashtra
- Navi Mumbai – Maharashtra
- Greater Mumbai – Maharashtra
- Tirupati – Andhra Pradesh
- Chandigarh – Union Territory
- Thane – Maharashtra
- Raipur – Chhattisgarh
- Indore – Madhya Pradesh
- Vijayawada – Andhra Pradesh
- Bhopal – Madhya Pradesh
While several major metro areas still feature in the overall list, many of the cities above are Tier-2 or emerging urban centers — demonstrating a growing trend toward smaller, more livable urban spaces that balance opportunity with quality of life.
📍 Why Tier-2 Cities Are Rising
According to analysts, Tier-2 cities are gaining strength in the rankings for several reasons:
- Lower congestion and crowding compared with large metros, making daily life less stressful.
- Improved urban services and governance in areas such as water supply, sanitation, and waste management.
- Faster infrastructure development, including better roads, public services, and connectivity.
- Better cost of living, with housing and basic expenses generally lower than in India’s largest cities.
These factors have helped cities like Pune and Indore appeal to families, young professionals, business owners, and retirees seeking a balanced lifestyle — combining economic opportunity with a higher standard of daily living.
📍 Spotlight: Pune and Indore
- Pune has emerged as the top-ranked city in India’s Ease of Living Index for 2025, overtaking larger cities and reflecting strong performance across key quality-of-life indicators, including healthcare, education, services, and urban planning.
- Indore, known for its cleanliness and active civic engagement, also secured a prominent place within the top 10, reinforcing its status as one of the most appealing Tier-2 cities for residents and businesses alike.
Experts say such rankings — while sometimes debated by residents about on-the-ground conditions — are increasingly shaping public perception and policy priorities, encouraging more balanced urban development across India’s diverse cities.