The Diversity of the Top 100 Cities of India

Indicus Analytics, An Economics Research Firm
www.indicus.net Laveesh Bhandari., Indicus Analytics, 2006
The Diversity of the Top 100 Cities of India
Laveesh Bhandari
1. Background
Cities are 24-hour market places where a large group of people reside and trade. The high
concentration of people brings with it a variety of tastes, preferences, wants, resources,
products and services. People from within the city and outside interact, thereby generating
the necessary mass for trade to occur. And so markets and cities are two sides of the same
coin.
The history of great civilizations is essentially the history of great cities. There is a direct
relationship between human progress and dynamic and prosperous cities. India is well
endowed with cities spread more or less evenly across the country. Like in other countries,
cities in India tend to be located in areas with adequate water and on trade routes. And like
in other countries, its cities also contain the bulk of the economic wealth.
However, unlike in other countries, modern India does not know much about its cities.
Apart from decadal reports from the Census of India, little information is available on cities.
The situation is worse where information on the extent of economic and market activity is
concerned.
However, information from various sources can be put together, trends analyzed, matched
with other sources, and analyzed to gain some important insights into cities.
The unit for defining a rural area is the “village” while urban areas are classified as either a
‘Town’ or ‘City’. The defining character of a village is its agriculture-based economy. The
Census of India lists about 638 thousand villages in the country, though some of these are
uninhabited. The definition of a town varies, but the most commonly used in India is that
of the Census of India. It considers a town to be that location which has (i) a minimum
population of 5,000 (ii) at least 75 per cent of the male working population engaged in non-
agricultural pursuits, and (iii) a density of population of at least 400 per square kilometer
(1,000 per square mile). Cities are simply larger towns, as per the Census definition towns
with a population of greater than 100,000 are cities. There were 5180 cities in 2001.
However, there are many large villages that could be considered to be towns but are not for
many reasons. Take for instance the 10,000-population benchmark. There were about 1300
towns with a population less than 10,000 in 2001. And there were almost 4000 villages with
a population greater than 10,000 in the same year.
Urban areas are governed in different ways. Municipalities, Municipal Coporations,
Cantonment Boards, Notified Town Area Committee, Nagar Panchayats are some urban
local governing bodies (ULBs) but not the only ones. Many times what we consider to be
the same city is covered by different ULBs. Delhi for instance has the New Delhi Municipal
Corporation and Delhi Municipal Corporation. On the other hand the districts of Mumbai
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and Suburban Mumbai have the same ULB overseeing their functioning - The
Brihanmumbai Municipal Corporation. In the case of Hyderabad, the ULB oversees the
urban area in the whole of Hyderabad district and also some portion of urban areas in
Rangareddi.
Table 1: Population Concentrations in India
Unit Population Interval Number
Village <1,000 persons 394,128
Village 1,000-4,999 persons 221,040
Village 5,000-9,999 persons 15,058
Village 10,000 or more persons 3,976
Town <5,000 persons 238
Town 5,000-10,000 persons 1,058
Town 10,000-50,000 persons 2,945
Town 50,000-1,00,000 persons 498
Cities 100,000 or more persons 422
Cities 1,000,000 or more persons 27
UAs 1,000,000 or more persons 35
Source: Census of India 2001
In addition, information at the city level is rarely available at the ULB level. ULBs
themselves tend to be poorly run across most of India and are not known for their data and
information provision abilities. As a consequence, it becomes quite difficult to categorize,
compare and analyze cities. After all, what seems to be a simple enough entity, and
intuitively quite apparent as a distinct unit, is not necessarily so administratively.
The Census of India has tried to resolve this by coming out with the concept of an ‘Urban
Agglomeration’ or UA. The UA is a continuous urban spread constituting a town and its
adjoining urban outgrowths (OGs) or two or more physically contiguous towns together. It
has brought out data for the 35 largest UAs in India as of 2001 (up from 23 in 1991). For
the purpose of delineation of Urban Agglomerations (UAs) during Census of India 2001,
following criteria were taken as pre-requisites:
a) The core town or at least one of the constituent towns of an urban agglomeration
should necessarily be a statutory town, and
b) The total population of all the constituents (i.e., towns and outgrowths) of an Urban
Agglomeration should not be less than 20,000 as per the 1991 Census.
We consider this to be significant improvement over the past. However, even here there is a
problem. The first has to do with limiting the data to the largest 35 UAs. There are many
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more such UAs across the country and for both policy and commercial purposes, no longer
can one limit analysis to only the top 35 urban areas. There are many more UAs, 384 to be
precise. However, data on these 384 UAs are not available.
The second has to do with other data sources. Apart from the Census, no other urban data
is available at the UA level. If the other aggregator-providers of information such as the
Reserve Bank of India, Telecom Regulatory Authority, and the various organs of the Central
and State governments were to synchronize their efforts with the Census, the quality of
analysis of urban India would improve dramatically. For the time being however, we have to
work with what is available.
To avoid confusion between these definitional differences, and also due the fuzziness of city
boundaries, many prefer to use the definition “urban area in a district” as a good enough
working definition when studying the larger cities. In most districts where the larger cities
are located there is only one major city and a few smaller cities. But the latter are more or
less small sub-urban branches of the single large city. For instance, in 9 of every 10 cities
that we study, the district is identified so much with the largest city, that the district has the
same name as the city.1
We therefore use this as the unit of analysis for the topmost 100
cities in India. However, in some cases we need to aggregate some districts for varying
reasons. These and other related issues are discussed next.
2. Topmost Cities in India
Note that we do not use the term ‘largest’ but use ‘topmost’ instead. Some sub-urban
locations have become important locations on India’s urban landscape. Some of these are
still not among the largest in terms of their overall market size or population. But they are
important centers in their own right. Gurgaon, Thane and Salt Lake are only some
examples.
Many think of large cities as those that have a larger population. Since we consider cities as
markets, where those living inside or outside interact, the total market size is a better
measure of the importance of a city. But the term ‘topmost’ also incorporates other
characteristics. If our focus is on where to locate our offices, then other issues become
more important, such as presence of government, and also good quality infrastructure. By
these criteria all state capitals should be included. If on the other hand, we need to better
understand which are the most important emerging urban locations, then we also need to
include emerging population concentrations around large cities.
We identify the top 100 cities of India in the following manner. First, the top 100 urban
areas of districts were sorted on the basis of their market sizes. Next all the capitals of States
and Union Territories were substituted at the cost of those cities with the smallest market
sizes. In most cases the states and UTs were already among the top 100 cities. Last, the
1
In districts where large cities are not present, there tends to be one city that dominates and also tends to be the
district headquarters.
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important urban areas in the vicinity of the large metros were identified, and these were also
included at the cost of the smallest cities as per the market size.
Indeed there are many different ways by which cities can be sorted and chosen. This is only
one way of doing so. But what this does ensure is that cities that are important from the
viewpoint of public governance (capitals), private governance (sub-urban location of
corporate offices) and economic status (market size), are all included.
3. Categorizing the Top Cities
We consider the top cities as those that are important from the point of view of market size
and public or private governance. But within this set of top 100 urban areas there exists vast
diversity. The market size of Kavaratti in Lakhshadweep would be the size of a small
neighborhood in Delhi for instance. The population of Mumbai surpasses that of many
states of India. Categorization helps in better benchmarking cities against each other.
However, categorization can be done in many different ways, and it is not very clear what is
the best way of doing so.
As mentioned, we take markets as being central to the concept of a city and therefore use
market size as the key unit for categorization. However, there are other considerations as
well. These are discussed below under each of the 4 major classes of cities.
Alpha Cities – The Elite Club of 10
The alpha cities are the elite cities of India. They are the elite not only because of their
market size but because of the important role they play in all aspects of human endeavor.
Among the most important cities of modern India, first, there was Calcutta – the political,
cultural, educational, and economic capital of British India. Then came Bombay. Delhi
slowly regained its lost glory after the British moved in, and Chennai steadily gained in
stature. At the time of Independence these four were the elite cities of India. Sometime
during the seventies, Bangalore and Ahmedabad also entered common acceptance as being
among the driving forces of modern India. Eighties and nineties have seen the emergence
of Pune and Hyderabad into this select club. And the 2000s are pointing towards Surat and
Coimbatore. Both have strong economies, have better governance than most other Indian
cities, are located between other major centers, and are well connected. But most important,
they have by their example shown how the government and citizens can together turn
adversity into an advantage and bring about revolutionary changes in short spans of time.2
2
The ‘city’ of Delhi is spread over 9 districts and is run by three important ULBs – the DMC, NDMC, and the
Delhi Cantonment. We aggregated all and consider urban areas in the Union Territory of Delhi to be a single
‘city’. The city of Mumbai is spread over two districts, Mumbai, and Mumbai (Suburban) and is run by a single
ULB – the BMC. We consider this to be a single city. Note that many may consider areas such as Dombivli
(in Thane district) and Navi Mumbai to be parts of Mumbai. We however include them as sibling cities of
Mumbai. Chennai itself is simpler to handle and urban areas in Chennai district are included. Hyderabad and
its twin city of Secundrabad (both in Hyderabad district) are taken as one, following common practice
currently. A small part of Rangareddi district is also overseen by the Hyderabad Municipal Coporation,
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Beta Cities – On the Threshold
These are the cities that can be. Indeed some among them will become elite cities
eventually. Many of these cities are state capitals such as Jaipur and Lucknow, benefiting
from better infrastructure and public services. Some such as Indore have been threatening
to break into the big league for many years, but never quite managed it. Some others such as
Kanpur have somehow lost their way. But whatever be their current status, these are among
the largest urban markets and can at anytime break into the elite club the way Surat and
Coimbatore have.
Another group of urban areas are already very large markets, some being even larger than
the smaller alpha cities. But we insist on retaining them in the beta club for a simple reason
– they are not technically a single city, rather a collection of smaller cities clustered around
each other and highly dependent on a neighbouring elite city. Three such sibling urban areas
are:
• Mumbai’s sibling urban centers in Thane district (containing cities such as Dombivli,
Bhayandar, Navi Mumbai, Thane, Ulhasnagar and Virar)
• Kolkata’s sibling urban centers in North 24 Parganas (containing cities such as
Baranagar, Barasat, Dum Dum, Kamarhati, Panihati and including Salt Lake City)
• Chennai’s sibling urban centers in Thiruvallur district (containing cities such as
Ambattur, Avadi and Tiruvottiyur)
Gamma Cities – Upcoming Cities
Goa, Vijaywada, and Thiruvananthapuram are some examples of these cities that, either in
recent years, or sometime in the past have come onto their own. These are important
regional or state centers of economic activity. They are among the top fifty urban centers in
the country. As they progress they will create opportunities for citizens living in them and in
surrounding areas.
Delta Cities – Budding Centers
This is a large group of 50 cities that are budding, or have the potential to turn into, into
much larger centers. Many are steadily gaining the necessary scales in terms of population
however, we do not include this part in Hyderabad. Kolkata defies categorization in more ways than one!
Kolkata district shares its borders with Haora and North and South 24 Parganas. Areas such as Alipur are not
in Kolkata district but in 24 Parganas. Salt Lake City and Dum Dum are in North 24 Parganas as well and have
their own ULBs. And there are many such cities in the vicinity of Kolkata main, that have their own
independent ULB that is distinct from Kolkata’s MC. Moreover, unlike in the case of Delhi and Mumbai, the
character and culture of many of these urban areas is highly different from that of Kolkata main. We therefore
follow the administrative principal and keep only Kolkata district to define Kolkata proper. Only the urban
areas of Bangalore, Pune, Surat and Coimbatore have been taken in our definition of these cities.
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and market size. Capitals of states and UTs, such as Gandhinagar, Srinagar and Shillong,
centers that are siblings of larger cities such as Gurgaon and Noida, industrial centers such as
Durg-Bhilai and Bokaro, historically important cities such as Udaipur and Mysore, large
emerging centers such as Jamnagar, religious cities such as Varanasi and Ajmer, are all
included in this set.
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Mimeo., Indicus Analytics, 2006
Table 2: Top 100 Cities in India (In Alphabetical order within each group)
Top 10
Ahmadabad Bangalore Chennai Coimbatore Delhi
Hyderabad Kolkata Mumbai Pune Surat
Next 20
Asansol Bhopal Faridabad Indore Jaipur
Jamshedpur Kancheepuram Kanniyakumari Kanpur Kochi
Lucknow Ludhiana Madurai Nagpur Patna
Salem North 24 Parganas(Urban
areas)
Thane (Urban Areas) Thiruvallur (Urban Areas) Vadodara
Next 20
Amritsar Aurangabad Chandigarh Dhanbad Ghaziabad
Goa Guwahati Haora Hugli Jabalpur
Jalandhar Kolhapur Nashik Rajkot Rangareddi
Thiruvananthapuram Tiruchirappalli Vellore Vijayawada Visakhapatanam
Next 50
Agartala Agra Aizawl Ajmer South 24 Parganas(Urb.
Areas)
Allahabad Anantapur Bareilly Bhavnagar Bhubaneshwar
Bokaro Cuttack Daman Dehradun Durg-Bhilai
Gandhinagar Gangtok Guntur Gurgaon Gwalior
Imphal Itanagar Jamnagar Jodhpur Kannur
Kavaratti Kohima Kota Kozhikode Mangalore
Meerut Moradabad Mysore Noida Patiala
Pondicherry Port Blair Raipur Ranchi Raurkela
Rupnagar Shillong Shimla Silvassa Solapur
Srinagar Thanjavur Thrissur Udaipur Varanasi
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4. Importance of 100 Top Cities in Total Urban India
How important are these largest 100 cities? Consider the table below. Broadly, the top 100
cities account for about 58 percent of the total urban population of 331 million as of 2006.
They account for 54 percent of the 244 million urban literates. Income levels tend to be
higher in the larger cities – they account for almost three fifths of the total household
income, savings, and expenditures.
Table 3: Share of Top 100 Cities in India’s Urban Economy, 2006
Cities Share of
Population
Share of
Literates
Share of
Household
Income
Share of
Household
Savings
Share of
Household
Expenditures
Share of
Commercial
Bank Deposits
Share of
Commercial
Bank Credit
Top 10 20% 21% 25% 25% 25% 53% 66%
Top 30 36% 37% 42% 42% 43% 63% 74%
Top 50 45% 47% 53% 52% 53% 69% 79%
Top 70 52% 53% 59% 59% 60% 74% 82%
Top 100 58% 59% 65% 65% 65% 79% 86%
All Urban
Locations
(in million) 331 244 Rs. 16,488,672 Rs. 5,076,676 Rs. 11,411,996 Rs. 15,223,750Rs. 10,389,797
Source: Indicus Estimates, City Skyline of India 2006
Within these 100 cities, the top 50 account for 45 percent of the urban population, and half
the incomes, savings, expenditures, and assets. They also tend to account for a large share
of the urban commercial bank deposits and credit – about 70 to 80 percent. The top 30 cities
account for more than half of all urban credits and deposits. This is not really surprising.
Larger cities do tend to have greater concentration of economic activities. And even some
residing in surrounding areas tend to depend upon the city.
However, this should not be interpreted as larger cities being more dynamic and growing
more rapidly than smaller cities. Based on data from credit and deposit growth as well as
increases in population, we find a more complex pattern. The table below presents figures
that are indicative in nature. The figures in each cell represent the median of the city wise
growth rates within each group. In larger cities, deposits are growing more rapidly. However
credit growth in very small cities is expanding at a higher rate as well. Expected market size
growth is also not necessarily weighed only among the largest cities.
Be that as it may, the largest 100 cities do tend to have a greater share of all measures of
economic activity than their population would warrant. This is also reflected in the
distribution of households across socio-economic characteristics and income distribution.
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Table 4: Growth in Top 100 Cities
Cities Median of Annual
% Growth in
Population (in
1990s)
Median of Annual
% Growth in
Credit
(in 2000s)
Median of Annual
% Growth in
Deposits
(in 2000s)
Median of Annual
% Growth in
Market Size
(Expected)
Top 10 3.0 17 13 8.2
Top 30 3.1 15 11 7.0
Top 50 3.1 15 10 6.1
Top 75 3.0 16 9 6.0
Top 100 2.9 16 10 6.3
All Urban Locations 2.6 18 9 5.1
Table 5: Share of Households by Socio-Economic Class (SEC)3
and Annual
Household Income (AHI)
Socio-Economic Class
(Share of Total Households)
Annual Household Income
(Share of Total Households)
All
Households
Cities Sec A Sec B Sec C Sec D Sec E >300k 150k-
300k
75k-
150k
<75k
Top 10 28% 27% 23% 18% 18% 25% 23% 22% 11% 22%
Top 30 45% 42% 39% 34% 35% 44% 40% 36% 23% 38%
Top 50 54% 52% 49% 43% 46% 54% 50% 46% 32% 48%
Top 75 60% 57% 55% 49% 52% 61% 57% 51% 35% 54%
Top 100 66% 63% 61% 55% 58% 67% 62% 57% 43% 59%
All Urban
Locations
(in ‘000s) 5,862 11,542 15,997 16,760 144,85 14,722 25,251 16,873 7,851 64,699
3
The Socio-economic Classification is a commonly used classification of households. The SEC classification is
based on a ranking of occupation and education characteristics of the head of the households. SEC A for
instance consists of households where the head has highest levels of education and is in an occupation typically
associated with high incomes. SEC E households on the other hand have heads who have low or no formal
education and are typically in non-skilled occupations.
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The top 50 cities have about 54% of the SEC A households and 54% of all the urban
households earning greater than Rs. 300,000 annually. The next fifty add merely another 12
odd percent. More than the SEC characteristics it is income that shows greater variations.
We find that the low-income groups are mostly in smaller cities. If on the other hand we
were to add income breakups greater than Rs. 6,00,000 or Rs. 12,00,000 chances are the top
100 cities would have a significantly higher share.
5. The Character of the Top Cities
Market size and demography are only two aspects of a city. The presence of certain
minimum infrastructure may define a city, but what is more important is the quality of that
infrastructure and services that go on top of it. Potholed roads, water supply mechanisms
that work only once every few hours or even days, electricity that is characterized more by its
absence than availability, a public transport system that is so poor that few use it in most
cities, taxi and auto-wallahs whose prices change depending upon the whims of the drivers,
parks that are dumping grounds for trash and resting place for cattle, drains characterized by
stagnant water through the year and overflows in monsoons. The list is long. But it is not
that all cities are alike. And even in those cities where these problems exist people have
found a way around them.
Storage of water in overhead tanks, booster pumps, tube wells, inverters and generators,
private transport, septic tanks, etc. are only some of the private solutions to public
inefficiencies. However, these services are costly. Depending upon the economic abilities of
the household, they may or may not be able to benefit from these private solutions.
Table 6: Availability of Public facilities
Cities Median of % Households
Electrified
Median of Annual %
Households Having Safe
Drinking Water
Top 10 95% 89%
Top 30 91% 78%
Top 50 91% 78%
Top 75 90% 75%
Top 100 90% 77%
Source: Census of India 2001
But living in a city is not only about infrastructure; it is also about pollution levels,
temperature and temperature variations, rain, heath care and education facilities, and so on.
A range of factors affects lifestyles of those living in a city. But secondary data sometimes
do not reflect the true conditions of a city. For this purpose a survey of about 10,000
Internet users across 50 cities was conducted, the results for the Top 10 are reported below.
Perceptions of the better off reveal a lot about the conditions of cities. This is so, as the
poorest sections face poor conditions across the country, and therefore there is little
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variation in that segment. Though this was not a representative survey it does provide a
good glimpse of life in various cities.
Table 7: Internet users Perceptions in Top 10 Cities
Cities Frequency of
water supply
% Reporting
having
Inverter/
Generator
Frequency of
electricity
break-downs
per day
% of Time
having to
Haggle with
Taxi/Auto/Ric
k.-wallah
Health
Facilities
compared to
other cities
Ahmadabad Twice a day < 25% No Power cut < 25% Much better
Bangalore Once in 2 day < 25% <1 hour < 25% Much better
Chennai Once a day < 25% <1 hour < 25% Much better
Coimbatore Once in 2 day < 25% <1 hour < 25% Much better
Delhi Twice a day 50 to 75% 1 to 2 hours 75 to 100% Much better
Hyderabad Once in 2 day < 25% <1 hour < 25% Much better
Kolkata Twice a day < 25% <1 hour < 25% Somewhat worse
Mumbai Once a day < 25% No Power cut < 25% Much better
Pune Twice a day < 25% 2 to 4 hours < 25% Much better
Surat Once a day < 25% No Power cut < 25% Somewhat better
Source: Online Survey conducted by Indicus
India is changing rapidly in many different ways. And the cities are changing even more
rapidly. Typically, we find that most new changes in all spheres come about first in the
metros, then spread onto other larger cities, and then eventually spread across whole of the
urban landscape. Consider two new ‘technologies’ – the mall and the Internet. Using data
from two different sources we find that almost all malls are concentrated in the topmost
cities, and so are the Internet users.
Table 8: Concentration of Emerging ‘Technologies’, Westernization and
Cosmopolitan Character
Cities Number of Malls Number of
Internet Users
(in ‘000)
Median Value of
Index of
Westernization
Median Value of
Index of
Cosmopolitan-ness
Top 10 115 5,241 27.52 3.4
Top 11-30 36 1,971 17.55 3.0
Top 31-50 26 1,177 13.18 2.6
Top 51-100 30 1,626 22.26 2.5
Many new technologies are associated with a westernized lifestyle and also English. We do
find that the topmost cities tend to be more westernized. However, there is a lot of
variation. For instance, Surat and Coimbatore are among the largest markets, but have low
westernization levels. Similarly the cosmopolitan character tends to be greater in larger cities
but is not necessarily high in all large cities. Kolkata is a large city but not as highly
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cosmopolitan as Nagpur. On the other hand a smaller city such as Guwahati is quite
cosmopolitan being the gateway into the north-east. Apart from Assamese, it boasts of a
large number of Bengalis, Hindi speaking community, and many from different states of the
North-east.
6. Earning, Investing, and Residing in Cities
It is not that the top cities in terms of market size are necessarily the easiest to live in. They
tend to have much larger economies and as a result offer greater options and choices for
both income and consumption for their residents. In order to comprehensively assess the
cities we rate the top 100 cities in India at three levels. For this purpose three indices were
developed: (1) City Earning Index (2) City Investing Index, and (3) City Residing Index4
.
City Earning Index: A city that has a good earning environment is one where employment
levels are high, and where employment growth is high, where per capita incomes are high,
and one where job opportunities are high as reflected through internet job sites.
City Investing Index: A city is a good place to invest in where others are also investing.
This is reflected in high credit growth, and the extent to which credit is higher than deposits,
and where per capita credit to small business is also high. A city where a large number of
people are migrating in also reflects growing opportunities for all.
City Residing Index: A city is a good place to reside in where (i) public health, (ii) basic
and higher education, (iii) utilities and transport, (iv) environment, (v) safety, and (vi)
entertainment conditions are good. Health is reflected in immunization and good quality
hospitals, basic education through literacy rates, professional education through MBA and
engineering seats per capita, and safety is reflected in murders, crime against women, and
robbery and thefts. A good environment is where pollution (as reflected in residential SPM
and N02 levels) is low, where temperatures are not too high, where temperature variations
are also low. Adequate entertainment is also an important criterion for residing in a city.
Good quality restaurants, malls, and locations to visit in a city reflect entertainment options.
Public facilities perhaps make up a large part of the overall residing friendliness of a city.
These include roads, safe drinking water, households electrified, and safe drinking water, and
adequacy of parks. But this forms only one set. Inverses of power cut frequency, presence
of inverter/ generator, housing inflation levels, and growth in housing inflation also reflect
overall living conditions in a city.
Table 9: Ranking among Top 10 Alpha Cities
4
The methodology is standard. A relevant variable was chosen and normalized to correct for the size of the
city (described below). Next, the variables were standardized by subtracting the minimum value and dividing
by the range (this is the standard HDR method). Thus, the best city achieved a rating of ‘1’ and the worst got
‘0’. These were then aggregated using equal weights to obtain the index of earning and investing. In the case
of residing index a two stage process was followed, where the basic variables were aggregated to form indices
of (i) public health, (ii) basic and higher education, (iii) utilities and transport, (iv) environment, (v) safety, and
(vi) entertainment. These were then aggregated again using equal weights to obtain the City Residing Index.
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Top 10 Cities Earning Index Investing Index Residing Index
Delhi 4 7 8
Mumbai 7 5 2
Kolkata 10 10 4
Chennai 9 3 3
Bangalore 2 6 1
Hyderabad 8 8 6
Ahmedabad 6 9 9
Surat 1 2 10
Pune 3 4 7
Coimbatore 5 1 5
We find that though there is a significant correlation between the Earning and Investing
indices, the Residing Index has no relationship with the other two. Locations that are good
places to earn and invest in tend to have greater levels of in-migration. These cities also tend
to have higher income levels. Both result in a higher demand on utilities. In some cities the
physical and social infrastructure is better able to keep up with this increase, than in others.
In those areas where it does, the Residing Index is higher. But not all cities are able to
respond. This in turn makes them poor locations to live in.
Relationship B/w Index to Earn & Reside In
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Earning Index
ResidingIndex
7. City Regions - Twins, Suburbs and Sibling Cities
No work on the top Indian cities can be complete without a mention of the suburb or the
‘twin’ cities around them. Typically, a suburb is a residential area or community outlying a
city such that those living in the suburb can commute to the main city for their economic
needs. Internationally the term suburb conjures up images of a quiet, relatively unspoilt, less
densely populated and predominantly residential community in the vicinity of a city. In
India, it is difficult to find such conditions.
Whether it is Gurgaon, or Salt Lake City, we find them to be economic entities quite
independent from the larger city near which they are located. For instance, Noida, Ghaziabad,
Faridabad, and Gurgaon are much more than mere suburbs of Delhi. But they are also not
large enough to be called Delhi’s twins. These are younger cities, not large enough yet, but
one day may even overtake Delhi.
There are quite a few such locations in India. There is Salt Lake near Kolkata, Navi Mumbai
in Thane district close to Mumbai, the communities on Bangalore-Hosur and Bangalore-
Mysore routes in Bangalore Rural District, Pimpri-Chinchwad near Pune, and so on. And
there are many more across the country, not as well known yet, but will be known soon
enough. Why are these locations important enough to study separately? What should we call
them? How should we define them? And how should we measure them?
These cities typically fulfill an important need that the larger city was unable to offer. In the
initial phase they may have been uni-dimensional, however, over time they have gained a
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distinct character and momentum of their own. The lack of office space in Delhi, the lack
of new residential areas in Kolkata, expensive real-estate in Mumbai have contributed to the
growth of Salt Lake, Gurgaon, and Navi Mumbai respectively. But now all three are much
more than merely a real-estate alternative to the larger neighbors. They are more like
younger siblings of the larger city.
These sibling locations include communities that may be large or small, planned or
spontaneously arisen, with and without quality infrastructure, sometimes similar and
sometimes quite dissimilar to the neighboring larger city, and so on. Indeed there is only
one thing in common between them – they are in the geographical vicinity of a much larger
city. Since we also require a ‘workable’ definition, it should be possible to obtain data on
these locations from disparate sources. We therefore use the urban areas of districts
surrounding the topmost cities in India as our current working definition of sibling urban
areas (or suburbs) for the discussion below.
Table 10: Some Sibling Cities
Key City Sibling Urban District Some Cities in the Sibling Districts
Delhi Gautam Buddha Nagar (Noida) Noida
Ghaziabad Ghaziabad
Faridabad Faridabad
Gurgaon Gurgaon
Mumbai Mumbai Suburban
Thane Navi Mumbai
Kolkata North 24 Parganas Dum Dum, Salt Lake, Rajarhat
South 24 Parganas Alipore, Joka, Baruipur, Garia
Haora Haora, Sibpur
Bangalore Bangalore Rural
Chennai Thiruvallur Ambattur
Kanchipuram Pallavaram, Kanchipuram
Ahmedabad Gandhinagar Gandhinagar
Hyderabad Rangareddi Kukatpally, Lal Bahadur Nagar
Pune - -
Surat - -
Coimbatore - -
XIV

Table 11: Top City Regions in India
Delhi
Region
Mumbai
Region
Kolkata
Region
Chennai
Region
Bangalore
Region
Ahmedab
ad Region
Hyderaba
d Region
Pune
Region
Surat
Region
Coimbato
re Region
Main Urban Area 9 Districts
of Delhi
Mumbai
+Suburban
Mumbai Kolkata Chennai Bangalore
Ahmedaba
d Hyderabad Pune Surat
Coimbator
e
Suburb(s): Urban
Areas in -
Noida,
Ghaziabad,
Faridabad,
Gurgaon Thane
North &
South 24
Parganas,
Haora
Thiruvallur
,
Kanchipur
am
Bangalore
Rural
District
Gandhinag
ar Rangareddi – – –
Population in ‘000s
21,065 20,935 13,810 8,199 7,230 5,905 6,567 5,131 3,963 3,461
Households in ‘000s
4,111 4,491 2,853 1,843 1,613 1,179 1,274 1,124 808 868
Household Income in
Rs. 100,000 12,624,639 11,395,912 5,803,869 5,295,968 5,534,388 3,915,560 3,613,895 3,383,765 2,258,268 1,819,187
Household Expend.
in Rs. 100,000 8,725,925 8,301,521 3,802,684 4,337,631 3,357,054 2,642,613 2,234,939 2,421,895 1,537,059 1,511,983
Total Bank Credit in
Rs. 100,000 14,784,482 31,769,216 4,804,113 6,235,245 5,016,961 1,965,800 3,200,414 1,600,472 3,79,500 1,488,632
Total Bank Deposit
in Rs. 100,000 25,301,040 31,722,798 7,655,742 5,341,157 6,457,601 3,275,897 3,948,761 2,216,824 7,16,446 9,86,897
Per Capita Income
in Rs. 1,000 60 54 42 65 77 66 55 66 57 53
Expected Ann.
Market Growth (%) 10 9.1 5.1 7.8 11.8 8.6 8.3 8.5 5 5.6
Annual Population
Growth (%) 4.46 2.95 1.65 2.19 3.21 2.82 2.82 4.03 5.6 4.1
XV

8. Conclusion
There are very high levels of diversity in India in almost all spheres of our lives. And the
same is true for our cities. So much so that it is difficult to identify commonalities and
patterns such that we can easily categorize and fit cities in.
For the researcher interested in neatly categorizing different cities in different groups, this
poses a problem, as the only categorization that will work is related to size. For the manager
interested in a common approach for her marketing efforts across cities, this poses an even
larger problem. It will be difficult to imagine a common strategy for Mumbai and Surat –
both among the 10 largest markets in India and only a few hundred kilometers away. This
diversity exists not only between cities, but also within cities.
Whichever way we see it, India is a heterogeneous country with cities that are also
heterogeneous. An appreciation of this heterogeneity needs to be built-in as an integral part
of our understanding of cities.
Another aspect of Indian cities needs to be appreciated. No one single city dominates any
large sphere – true Mumbai dominates the financial sector, Delhi the political ‘sector’, but
there is little else. Almost as many movies are made out of Chennai as in Mumbai, the
automobile sector is spread around Pune, Delhi, Chennai and many other cities. And
though many of the large IT companies are headquartered in Bangalore, cities such as Pune,
Hyderabad are rapidly catching up, not to mention the high levels of IT activity in Mumbai
and Delhi regions. Whether it is an economic activity, or any other aspect of life, India is
fortunate to have a large number of diverse and dynamic cities.
Delhi and Mumbai do not dominate India as much as, say, Mexico City dominates Mexico,
or Sao Paolo dominates Brazil. The top 100 largest cities only account for roughly 50 to 60
percent of the overall market. So as long as we are thinking of the Indian middle class, or
those at the bottom of the pyramid, there is a large chunk spread much more finely in the
rest of the 5000 odd cities in India. These masses may not necessarily be from the top
educational institutes of India, most may not be English speaking – but many of the highly
educated and high income earners are not necessarily only in the top 100 cities.
But the glass is half full. These top 100 cities do contain the largest chunk of the Indian
urban population and market. For those interested in covering the bulk of India’s urban
population and market, concentrating on these 100 cities can yield rapid results provided
enough flexibility exists in their strategies to account for the heterogeneity.
XVI

The Diversity of the Top 100 Cities of India

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