Which 2 states capital are Chandigarh

What are the top tier 2 cities to choose in India?

  • The Indian tier 2 cities are developing rapidly and are home to several industrial clusters and start-up centers, particularly in the areas of IT, manufacturing and export.
  • Dubbed the “talent movement reversal,” many urban professionals in India are moving to tier 2 cities for better career opportunities, lower cost of living and immediate access to clean air.
  • With the availability of talent, infrastructure, cheaper real estate and lower start-up costs, several multinational companies including HCL, Infosys, Wipro and Ericsson have expanded their operations in tier 2 cities.

Tier 2 cities have emerged as a strong base for industrial clusters and incubators in India, which has led to the emergence of new IT and manufacturing centers.

Many multinational corporations (MNCs) have expanded into these cities. As more talent becomes available, the cost of setting up is low, wages are competitive, real estate is affordable, and operating costs are lower.

It is also important to note that Indian cities are categorized into tiers - namely Tier 1, 2 and 3 - based on their population size, which does not necessarily indicate their level of economic development.

In the past three to five years, many of these cities have become preferred destinations for urban professionals in India. Compared to some of the specific advantages of tier 1 cities, they value the living conditions; B. clean air and a green environment. But the tier 2 cities themselves are also expanding and improving their transport connections and infrastructure, which is proving to be attractive for companies and talented individuals.

Organizations that set up in tier 2 cities, for their part, save costs. Because salary structures can be more competitive and the cost to the company (CTC) per employee is lower than in tier 1 cities. Employees also save more due to the lower cost of living.

According to the Experis IT Employment Outlook Survey (EITEOS), conducted in December 2019, employers in tier 2 cities like Chandigarh and Jaipur are looking to hire more IT talent in the near future.

In this article, we take a look at the top five Tier 2 cities foreign companies should consider when making hiring decisions. This list is based on analysis of the LinkedIn India Workforce Report 2018 and other surveys conducted by career and recruiting platforms in India.

  1. Chandigarh

Chandigarh, a union territory of India, is the common capital of the northern states of Punjab and Haryana.

It is the first planned city in India and has a strong transport network, established industrial cities and is a hub for trade and business activities.

Chandigarh, along with Kerala, is at the top of the SDG India Index by Niti Aayog, which assesses the progress of the states and union areas on the basis of social, economic and environmental parameters.

The main industries that are located here include tourism, hospitality, food, wood products, furniture, textiles, rayon stockings and machinery.

Although there are many job opportunities in these industries, the number of recruitments has increased significantly in the following sectors: mechanical engineering, manufacturing, automotive and banking. Chandigarh recruitment consultants are often hiring professionals in the accounting, finance, customer service and administration industries.

According to a November 2019 survey by the TimesJobs job portal, most jobs in India were advertised in the Delhi-NCR region, followed by Chandigarh. In the past two years, the city has also developed into the home of start-ups and workplaces, indicating that India's tier 2 cities are able to technologically and economically support companies on their way through life.

Chandigarh has several educational institutions dedicated to talent development in the city. These include Panjab University, the Institute for Medical Education and Research, Punjab Engineering College, Post Graduate Government College, and DAV College.

Major multinationals present in Chandigarh include Infosys, Tech Mahindra, Dell Technologies, HDFC Bank, Airtel, HCL, Kotak Mahindra, OYO, Wipro, Uber, Vodafone, Ericsson and Marriott International.

  1. Vadodara

According to the LinkedIn India Workforce Report, the state's third largest city, Gujarat, Vadodara was on the list of Top 10 Indian Cities That Attract Talent. The main industries in the city are petrochemicals, mechanical engineering, chemicals, pharmaceuticals, plastics, IT and foreign exchange services.

According to a survey conducted by the job portal monster.com in August 2019, hiring in Vadodara rose by 11 percent in the first half of 2019. Talent recruitment is particularly high for IT, civil and mechanical engineers, web developers and quality assurance managers, as well as in the pharmaceutical sector.

The University of Baroda, Indian Institute of Information Technology, GSFC University, Baroda Medical College, Vadodara Institute of Engineering, and Manubhai Patel Dental College are among the leading educational institutions in the city.

These institutions have invested heavily in their infrastructure and academic staff to establish Vadodara as a learning center and attract students from across the country as well as from abroad. This step will help organizations select the best talent from a diverse pool of candidates.

Well-known multinational companies that have settled in Vadodara include Tata Consultancy Services (TCS), Larsen & Toubro, Nielsen, ABB, Mastercard, Schneider Electric, Siemens, Indian Oil, GE, Hero MotoCorp, General Motors and Cadila Pharmaceuticals.

  1. Jaipur

The capital of the state of Rajasthan, Jaipur, is an important cluster of micro, small and medium-sized enterprises (SMEs) in northern India. Established industries in the region include tourism, textiles, food and beverage, tobacco, mining, automobile and bicycle manufacturing, and gemstones and jewelry. In recent years, however, Jaipur has been pushing to become an IT hub in the country and received approval to set up an IT / ITeS SEZ in 2018.

The main sectors are IT, travel and tourism, outsourcing services, financial services and the mining industry, especially for entry-level and middle management positions.

According to LinkedIn's India Workforce Report 2018, Jaipur is one of the top 10 destinations for job seekers who want to immigrate to another city to find career opportunities. (In addition to Jaipur, Chandigarh and Vadodara are also mentioned in this list).

The availability of qualified workers is facilitated by the presence of well-known higher educational institutions. Major institutions include the University of Rajasthan, IIS University, Manipal University, National Agricultural Management Institute, Indian Health Management Research Institute, Jaipur National University and Malviya National Technology Institute.

Prominent multinational corporations based here include Genpact, Infosys, Deutsche Bank, Ericsson, HCL, MetLife, Vodafone, OYO, Amazon, ITC, Honda, Trimax, and Jio.

  1. Lucknow

Lucknow, the capital of the most populous Indian state of Uttar Pradesh, is a well-known historical cultural center. However, over the past six years it has steadily grown into a successful IT center. This is due to the extensive investments made by leading technology companies - such as B. TCS and HCL Technologies.

By 2016, HCL had committed to around 1.5 trillion. INR ($ 15 billion) to invest in the development of an IT city in Lucknow. The project is classified as under the establishment of a Special Economic Zone (SEZ) and is intended to become a sustainable technology center. The SEZ is expected to create around 25,000 jobs.

In addition to IT, other important industrial sectors in Lucknow are aviation, the automotive industry, machine tools, distillery chemicals and furniture. The most hiring sectors include manufacturing, engineering, IT, telecommunications, FMCG and real estate.

As for the talent available, the country's premier business and management institute - the Indian Institute of Management (IIM) has an on-site facility. Other leading educational institutions in the city include Lucknow University, Bahasaheb Bhimrao Ambedkar University, Amity University, Dr. A.P.J Abdul Kalam, the Sanjay Gandhi Post Graduate Institute of Medical Sciences, King George’s Medical University, and the Dr. Ram Manohar Lohia Institute of Medical Sciences.

The main multinationals with a presence in Lucknow are HCL, TCS, Tata Motors, Airtel, Vodafone, ITC, OYO, Wipro, Ericsson, Nokia, Amazon, Nuance, Cipla, Nestle and Abbott.

  1. Kochi (Cochin)

Kochi (also known as Cochin), a major port city in the southernmost state of Kerala, is another Tier 2 city that has quickly become an IT hub. The state government has set up an information park with 392 companies. Large multinational corporations such as TCS, HCL, Wipro, Ernst & Young and Cognizant have their branches there. Around 42,000 people were hired locally in 2018.

Kochi is of particular importance as a port city. The main industry in Kochi‘s is seafood and spice imports, shipping and shipbuilding. Other key industries include manufacturing, healthcare, banking, chemicals, and construction.

The banking, marketing, retail, insurance, finance, manufacturing and construction sectors have recently seen particularly strong recruiting.

Tier 2 cities like Kochi are also expected to slowly develop into start-up headquarters, which will lead to the creation of more dispersed regional job and investment opportunities. Notable educational institutions in the city include the University of Science and Technology in Cochin, Cochin College, St. Teresa's College, University of Fisheries and Marine Research in Kerala, Amrita Institute of Medical Sciences and Research Center, Rajagiri Business School and the SCMS School of Technology and Management.

In addition, the state of Kerala also has the highest literacy rate (93 percent) in India. As a result, this means: highly qualified candidates for job advertisements from multinational corporations.

Prominent multinational companies represented in Kochi include TCS, Cognizant Technology Solutions, Wipro, Ernst & Young, Fingent, IBS Software, KPMG, Xerox, IBS Software Services, and Avaya.


India Briefing is published by Dezan Shira & Associates. From its offices around the world, the company supports foreign investors in Asia, including in Delhi and Mumbai. Write to[email protected] if you have any questions about India.