PPPs Fuel India’s New Growth Hubs

In recent years, India has witnessed a decisive economic shift, with smaller cities emerging as dynamic growth engines. Public-Private Partnerships (PPPs) have been a critical catalyst in this transformation, blending government-led infrastructure investment with private sector innovation.

According to Magicbricks Research, cities like Kanpur (19.5%), Lucknow (23.7%), and Indore (22.8%) have seen higher annual capital appreciation than Delhi (11.1%). “PPPs are accelerating the transformation of tier-II cities with improved accessibility and infrastructure. Major expressways, metro projects, and industrial hubs are key reasons behind this growth,” says Prasun Kumar, chief marketing officer, Magicbricks.

Sanjay Chatrath, co-founder & managing partner, Incuspaze, notes that over ₹23 trillion, more than 21% of the National Infrastructure Pipeline between 2020 and 2025, is driven by private participation. “We’re seeing highways, logistics parks, and digital infrastructure transform tier-II and III cities into viable business destinations,” he adds.

Sachin Alug, CEO, NLB Services, shares that in the first half of 2025, IT hiring in tier-II and III cities rose by 50%, outpacing metro areas. “There has been a 42% jump in the growth of these urban centres — nearly double that of major metros — reflecting the impact of PPP investments,” he says.

Anshuman Magazine, chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, highlights that PPPs are creating robust industrial clusters, expanding digital infrastructure, and generating employment across manufacturing, IT, logistics, and R&D. “This decentralised development model is reshaping India’s economic landscape and ensuring more regionally balanced growth. Strengthening PPP frameworks will be key to accelerating investments and making our cities globally competitive,” he observes.

Arvind Nandan, MD – research & consulting, Savills India, underscores that PPPs help governments bridge infrastructure gaps beyond public funding limitations. Andhra Pradesh, for example, has approved over ₹28,500 crore in private investments from Cognizant, Adani Group, and Reliance Consumer Products. The state is also developing 75 MSME parks under PPP models.

Madhya Pradesh is advancing projects like a ₹1,500 crore startup and IT park in Indore, while Uttar Pradesh is restoring 11 heritage sites under PPPs to drive tourism-led employment. The Union Budget 2025-26 has reinforced this momentum by allocating ₹1 lakh crore to the Urban Challenge Fund, mandating at least 50% of financing for eligible projects via PPPs, bank loans, or bonds.

Shekhar Patel, president, CREDAI, notes that smaller cities are becoming employment hubs aligned with national infrastructure policies. “Growth corridors like the UP Defence Corridor, Amritsar-Kolkata Industrial Corridor, and Delhi-Mumbai Industrial Corridor highlight the PPP model’s impact. The UP Defence Corridor alone is expected to attract ₹20,000 crore and create 2.5 lakh jobs,” he explains.

Mohit Goel, MD, Omaxe Ltd., sees PPPs as powerful enablers of urban transformation. “They allow us to revive under-utilised assets, create jobs, and develop real estate that serves public utility and private enterprise. When intent and execution come together, PPPs can turn transit hubs into economic engines,” he says.

Shesh Rao Paplikar, founder & CEO, BHIVE Workspace, emphasises “These partnerships are democratising opportunities, allowing talent to flourish closer to home while reducing the costs of mass migration.”

In Pune, Aakash Agarwal, MD, Krisala Developers, observes that integrated planning of infrastructure, housing, and commercial hubs is unlocking efficiency and generating long-term employment. “When cities are planned holistically, they don’t just grow, they thrive,” he says.

Indore stands as a live case study. “Over the last decade, we’ve seen private capital and public vision converge — from waste management and smart roads to IT parks and real estate corridors like the Super Corridor. These aren’t just infrastructure projects; they’re employment generators,” says Manoj Dhanotiya, founder & CEO, Micro Mitti.

Ahmedabad is also on the brink of transformation. “We’ve seen how thoughtfully designed developments can uplift the built environment and attract industries and talent. By aligning with government initiatives, we integrate sustainability and inclusivity into our projects,” says Shekhar Patel, MD & CEO, Ganesh Housing Corp.

In Navi Mumbai and Panvel, Sandeep Sonthalia, CEO, The Wadhwa Group, highlights the impact of infrastructure projects like the Mumbai Trans Harbour Link and Navi Mumbai International Airport. “They are transforming not just connectivity but the economic fabric of the region,” he says.

Ashok Kularia, MD, ANJ Group, stresses that private players must co-create contextual, integrated ecosystems. “The mandate is to build smart industrial zones and public infrastructure aligned with local economic drivers,” he adds.

However, Anuj Mehta, partner, Dhuleva Group, cautions that the success of PPPs depends on enduring commitment from all stakeholders. “Project building requires constructing trust and systems built to last,” he concludes.