Classification of Indian cities

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Location map of India with all X (Tier-I) cities

The Classification of Indian cities comprises a ranking system used by the Government of India to allocate House Rent Allowance (HRA) to public servants employed in different cities in the country. HRA is also used by the Indian Revenue Service (IRS) to provide income tax exemptions. Cities are classified on HRA and on the basis of their population, as recommended by the Sixth Central Pay Commission in 2008 and Reserve Bank of India respectively.[1]

Before the Sixth Central Pay Commission, the classification of cities in India was based on two parameters — Compensatory City Allowance (CCA), further divided into categories A-1, A, B-1 and B-2, and HRA, further divided into categories A-1, A, B-1, B-2 and C.

Current classification[edit]

Under the recommendation of the Sixth Central Pay Commission, the CCA classification was abolished in 2008. The earlier HRA classification of cities was changed from A-1 to X, A, B-1 and B-2 to Y and C and unclassified cities to Z.[2][3][4] X, Y and Z are more commonly known as Tier-1, Tier-2 and Tier-3 cities respectively.

One the basis of the census 2011, two cities — Pune and Ahmedabad — have been upgraded to 'X' class from 'Y' and 21 cities to 'Y' from 'Z' for the purpose of HRA effective from 1 April 2014.[2][5][6]

HRA Classification City
X Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune
Y Agra, Ajmer, Aligarh, Allahabad, Amravati, Amritsar, Asansol, Aurangabad, Bareilly, Belgaum, Bhavnagar, Bhiwandi, Bhopal, Bhubaneswar, Bikaner, Bokaro Steel City, Chandigarh, Coimbatore, Cuttack, Dehradun, Dhanbad, Durg-Bhilai Nagar, Durgapur, Erode, Faridabad, Firozabad, Ghaziabad, Gorakhpur, Gulbarga, Guntur, Gurgaon, Guwahati, Gwalior, Hubli-Dharwad, Indore, Jabalpur, Jaipur, Jalandhar, Jammu, Jamnagar, Jamshedpur, Jhansi, Jodhpur, Kannur, Kanpur, Kakinada, Kochi, Kolhapur, Kollam, Kota, Kozhikode, Lucknow, Ludhiana, Madurai, Malappuram, Malegaon, Mangalore, Meerut, Moradabad, Mysore, Nagpur, Nanded-Waghala, Nashik, Nellore, Noida, Patna, Pondicherry, Raipur, Rajkot, Rajahmundry, Ranchi, Rourkela, Salem, Sangli, Siliguri, Solapur, Srinagar, Surat, Thiruvananthapuram, Tiruchirappalli, Tiruppur, Tirupati, Ujjain, Vadodara, Varanasi, Vasai-Virar City, Vijayawada, Visakhapatnam, Warangal
Z All other cities

Historical Classification[edit]

The cities were classified as follows before the Sixth Central Pay Commission's recommendations were followed in 2008.[7] This classification was initially based on the recommendations of the Fifth Central Pay Commission of India in 1997.[7] Chennai, New Delhi, Kolkata and Mumbai were classified as A-1 cities.[8] City statuses were later revised based on the results of the 2001 Census of India.[7] Hyderabad was accorded the A1 status on 31 August 2007, and Bangalore on 21 September 2007.[8] CCA classification was abolished in 2008.

CCA classification HRA classification City
A-1 A-1[8] Bangalore
A-1 A-1 Chennai
A-1 A-1 Delhi
A-1 A-1[9] Hyderabad
A-1 A-1 Kolkata
A-1 A-1 Mumbai
A A Ahemdabad
A A Pune
A A Kanpur
A A Indore
A A Jaipur
A A Vadodara
A A Surat
A A Nagpur
A A Lucknow
A A Patna
A A Jhansi
A A Nashik
A A Aurangabad
A A Gandhinagar
B-1 B-1 Madurai[7]
B-1 B-1 Aligarh
B-1 B-1 Visakhapatnam
B-1 B-1 Coimbatore[7]
B-1 B-1 Vijayawada
B-1 B-1 Rajkot
B-1 B-1 Solapur
B-1 B-1 Anand
B-1 B-1 Ludhiana
B-1 B-1 Agra
B-1 B-1 Meerut
B-1 B-2 Thiruvananthapuram
B-1 B-2 Faridabad
B-1 B-2 Varanasi
B-1 B-2 kochi
B-1 B-2 Jamshedpur
B-1 B-2 Allahabad
B-1 B-2 Amritsar
B-1 C Dhanbad
B-2 B-2 Gorakhpur
B-2 B-2 Hubli-Dharwad
B-2 B-2 Bhavnagar
B-2 B-2 Raipur
B-2 B-2 Mysore
B-2 B-2 Mangalore
B-2 B-2 Guntur
B-2 B-2 Bhubaneshwar
B-2 B-2 Amravati
B-2 B-2 Srinagar
B-2 B-2 Bhilai
B-2 B-2 Warangal
B-2 B-2 Kakinada
B-2 B-2 Nellore
B-2 B-2 Rajahmundry
B-2 B-2 kochi
B-2 B-2 Ranchi
B-2 B-2 Guwahati
B-2 B-2 Gwalior
B-2 B-2 Chandigarh
B-2 B-2 Patiala
B-2 B-2 Jodhpur
B-2 B-2 Tiruchirapalli
B-2 B-2 Pondicherry
B-2 B-2 Salem
B-2 C Kozhikode
B-2 C Dehradun
B-2 C Hajipur
B-2 C Sangli
B-2 C Jamnagar
B-2 C Jammu
B-2 C Kurnool
B-2 C Roorkee
B-2 C Vellore
B-2 C Etawah

Population-based Classification[edit]

The Reserve Bank of India (RBI) classifies centres into 6 tiers based on population.[10] The tables below shows the classification.

Classification of centres (tier-wise)
Population classification Population (2001 Census)
Tier-1 100,000 and above
Tier-2 50,000 to 99,999
Tier-3 20,000 to 49,999
Tier-4 10,000 to 19,999
Tier-5 5,000 to 9,999
Tier-6 less than 5000
Population-group wise classification of centres
Population classification Population (2001 Census)
Rural Centre up to 9,999
Semi-urban centre 10,000 to 99,999
Urban centre 100,000 to 999,999
Metropolitan centre 1,000,000 and above

See also[edit]