The idea of Tier I to VI cities was originally developed by the government to calculate employee benefits such as house rent, dearness allowance based on the population size of settlements. Though this classification is no longer officially used, the categories continue in real estate and development circles, where they are defined by land value and population. The seven metropolitan cities remain Tier I, while many smaller state capitals and towns are classified as Tier II, reflecting their investment and land-value potential. Housing markets are a key driver of this hierarchical categorisation, which has since extended into development finance and real estate planning. In its present form, the category of Tier II cities is largely defined by exclusion, emerging from a hierarchy anchored in metropolitan centres. Land markets, investment recovery potential and flexible negotiation environments characterise Tier II and Tier III cities. When land markets become saturated in big cities, investment shifts towards Tier II cities, driving infrastructure growth through wider road networks, metro systems, and new investments in hospitals, hotels and housing. Growth is driven not by the needs of these cities but by external capital pressures, including global financial flows. Local administrations are often ill-equipped to manage these pressures, while the political class is eager to facilitate land-use changes and land transactions. The master planning process has been practised in India for decades and is ideally based on extensive local surveys, public hearings and people’s participation. Needs are assessed through planning standards and regional plan provisions. Tier-based hierarchies are never a criterion in plan preparation. Plans are not driven by financial considerations and typically follow similar physical patterns from city to city, with ring roads, designated industrial land use and broadly density-driven housing. In most cases, external pressures for housing and infrastructure fall outside the planning framework, resulting