For a long time, the economic map of India was easy to read. The biggest companies went to Bengaluru, Mumbai, Delhi NCR, Hyderabad, Chennai and Pune. Jobs followed him. Same happened with roads, offices, housing and investments. The more these cities developed, the more they attracted and that cycle strengthened their dominance.
It also influenced how people thought about opportunity. The city, home to multinational companies, modern infrastructure and a deep talent pool, was naturally seen as a strong bet for long-term growth. That view is no longer enough.
Across India, economic activity has begun to expand in ways that were barely visible a decade ago. Improved highways, new regional airports, industrial corridors, stronger digital networks and the rise of Global Competence Centers (GCCs) are opening up new possibilities outside the largest metropolises. Coimbatore, Kochi, Indore, Mangaluru and Bhubaneswar are now finding place in the conversation around manufacturing, technology, logistics and professional services.
This is not the story of the decline of India’s major cities. They remain the most powerful economic centers of the country and receive the largest share of investment. But the next phase of growth may come from a broader set of regional centers rather than one or two key markets.
For investors, this matters because this is not just a story of a fashionable tier-2 city. This points to a profound change in the way India’s economy is built.
Development is no longer being planned around some cities
India’s economy has expanded rapidly in the last decade. At the same time, public policy has placed greater emphasis on the creation of jobs, industry, and infrastructure beyond the country’s largest urban centers.
The National Industrial Corridor Development Program is at the center of that effort. It is designed to create integrated industrial cities connected through roads, ports, airports and freight networks. The program now extends to 11 industrial corridors, including the Chennai-Bengaluru Industrial Corridor, Bengaluru-Mumbai Industrial Corridor, East Coast Industrial Corridor and the extension of the Chennai-Bengaluru corridor to Kochi via Coimbatore. It aims to create connected spaces where factories, logistics providers and suppliers can operate more efficiently through stronger transportation and freight infrastructure.
Regional air connectivity is moving in the same direction. In March 2026, the Union Cabinet approved the next phase of the revised UDAN Regional Connectivity Scheme, which included an outlay of ₹₹28,840 crore for FY2026-27 to FY2035-36. As of March 2026, 663 routes were operated at 95 airports, heliports and water aerodromes. More than 163 lakh passengers have used the network since the program began.
Better connectivity can help smaller urban centers attract businesses, support tourism, strengthen trade ties and become more closely integrated with the wider economy. Together, these policies point to a deliberate effort to connect more regional centers to national supply chains rather than focusing growth in a handful of metropolises.
Corporate change is already visible
Infrastructure creates the environment for development. Companies decide whether that setting would make economic sense. One of the strongest signs of change is the growth of global competence centres.
GCCs are not a back office in the old sense. Multinational companies use them for technology, finance, research, engineering and core business operations, making them a major force in India’s office market. JLL reported that GCC leasing is set to reach a record 31 million square feet in 2025. According to Cushman & Wakefield’s H1 2026 report, GCC leasing stands at 16.5 MSF, up nearly 38% YoY. The numbers show how important India has become to the global operations of large corporations.
This market is still dominated by traditional metros, but the scope for exploration of new locations is increasing. JLL’s India GCC Guide 2026 identifies Coimbatore, Kochi, Mysore, Ahmedabad, Jaipur and Kolkata as increasingly attractive options. These cities provide skilled talent and working here can be 10% to 35% cheaper than in more established markets.
That’s only part of the cost benefit story. Many of these cities have stronger universities, technological talent, improved transportation links, and a better quality of life than they were once credited with. According to CBRE, India leased 45.5 million sq ft of office space in the first half of 2026, the highest ever for that period. The GCC’s share of total leasing stood at nearly 43%, while the number of GCC transactions grew by more than 30% year-on-year, even as companies continued to navigate the uncertain global economy.
A new GCC brings more than just the demands of Office. It creates jobs, increases demand for housing, transportation, schools, hospitals, restaurants, and retail, sparking economic activity in the local economy. This is how a city begins to change.
Emerging cities aren’t all following the same script
It is tempting to consider Tier-2 development as a broader topic. In fact, each city is building from a different base.
Coimbatore has spent years developing a strong manufacturing and engineering ecosystem. Its location along the extension of the Chennai-Bengaluru Industrial Corridor towards Kochi gives another layer of support to the existing industrial base.
The advantage of Kochi is different. It already has a strong maritime and logistics identity, and is also being considered as a future GCC destination due to its talent pool and improved business environment.
Indore has emerged as one of Central India’s most important centers for manufacturing and services. Its industrial infrastructure along with Vikram Udyogpuri Industrial Township under the National Industrial Corridor Development Program has enhanced its appeal.
Odisha is adopting a more regional approach. Its plans focus on the Bhubaneswar-Cuttack-Paradip Economic Zone, while the Odisha Economic Corridor is also being developed under the National Industrial Corridor Programme.
Mangaluru brings another set of advantages. It has a major port, an airport and a location that fits into Karnataka’s effort to spread economic activity beyond Bengaluru. The state government has also called for encouraging GCC development in other tier-2 and tier-3 cities as part of a more balanced growth strategy.
None of these places need to become the next Bengaluru or the next Mumbai. This comparison can be misleading because it assumes there is only one model for urban development. Coimbatore can further strengthen its manufacturing strengths. Kochi can build on logistics and technology. Mangaluru can benefit from port based development. Bhubaneswar may continue to grow in technology, electronics and public administration. Their appeal lies in what they already do well, not in how closely they can mimic Metro.
Why should investors look beyond the headlines?
It is often easier to recognize economic change in hindsight than before it. By the time a city is widely seen as a new growth hub, the groundwork has usually been underway for years. Roads have been built, industrial parks have developed, businesses have expanded and people have started commuting. Headlines often come much later.
That is why infrastructure should be seen as a starting point, not a destination. A highway, airport or freight corridor cannot transform a local economy on its own. Its real value is in making it easier for businesses to invest, rent, transport goods and access new markets, creating jobs and facilitating demand for housing, health care, education and other services.
The World Bank has consistently highlighted the relationship between transport infrastructure, market access and regional productivity. Better connectivity can improve labor mobility, reduce logistics costs and support more balanced economic growth across all sectors.
India’s own infrastructure strategy reflects this thinking. Under the PM Gati Shakti National Master Plan, multiple ministries are coordinating roads, railways, ports, airports and utility infrastructure through an integrated planning platform to improve connectivity, reduce logistics bottlenecks and make project execution more efficient.
For investors, infrastructure alone is not the investment thesis. It becomes worthwhile when it helps businesses expand, create jobs and strengthen local economies over time. This is why the economic impact of infrastructure often takes longer to emerge than initial announcements suggest.
Opportunity may not be distributed equally
India’s growing focus on regional cities should not be taken as a guarantee that every tier-2 market is going to be a major economic success story. History rarely works that way. Infrastructure is an important advantage, but it is only one piece of a much larger puzzle.
Whether a city develops as a sustainable business hub depends on many other factors including the quality of governance, availability of skilled talent, industrial policy, educational institutions, ease of doing business, private sector participation and access to finance.
The Economic Survey 2025-26 also says something similar. It said that while urbanization will play an important role in India’s long-term development, productivity gains depend on the quality of urban planning, infrastructure and institutional capacity rather than just urban expansion.
Companies take an equally balanced approach when deciding where to invest. Low costs may make a city attractive initially, but long-term decisions are also influenced by the availability of talent, transport connectivity, digital infrastructure, quality of life and the strength of the surrounding business ecosystem. This helps explain why some cities receive more attention than others.
Coimbatore’s manufacturing and engineering capabilities have been built over decades. Kochi combines a well-established maritime economy with a growing technology ecosystem. Indore benefits from a diverse industrial base supported by strong educational institutions. Bhubaneswar has continuously expanded its strength in information technology, electronics and public administration. These benefits have evolved over many years and cannot be created through a single policy announcement.
For investors, understanding those underlying forces is more valuable than assuming that every emerging city will follow the same path.
changing map of development
Over the past two decades, India’s growth story has been centered on a handful of metropolitan cities. Those centers remain important and will continue to attract significant investment. What is changing is the number of locations contributing to that growth. Manufacturing is expanding into new industrial corridors, technology companies are looking beyond traditional talent hubs, logistics networks are becoming more integrated and regional air connectivity continues to improve.
Overall, these trends point to an economy that is becoming geographically widespread. The importance of metros is not decreasing, but the opportunities are getting bigger. For investors, this means looking beyond the obvious locations and understanding the structural forces shaping regional economies. Infrastructure, business investment, employment and industrial diversification reinforce each other over time to create sustainable growth.
As India’s economy becomes more connected, its next phase of growth may be driven by a broader network of regional centers rather than a handful of major metros. The key is not to chase the city making headlines today, but to identify where infrastructure, business and skilled talent are coming together to drive tomorrow’s growth.
Note to reader: This article has been produced by HT Brand Studio on behalf of the brand and has no journalistic/editorial involvement with Hindustan Times. The content is for information and awareness purposes and does not constitute any financial advice.
