Rajesh Damani, Founder and Managing Director, Jamshri Realty in an interaction with Janifha Evangeline, Editor, Asia Manufacturing Review shares his views on How much do integrated commercial hubs in Tier 2 & 3 cities contribute to India’s GDP growth today, Which industries benefit most from integrated ecosystems in smaller cities, how are these ecosystems creating local jobs and reducing migration to metros, how do they help nurture local entrepreneurship, startups, and MSMEs and more.
Rajesh led the transformation of Jamshri Mills into Jamshri Realty, turning a 111-year-old industrial landmark into a vibrant mixed-use destination featuring high-street retail, IT offices, hospitality, and sports facilities. Deeply inspired by the Jamshri philosophy of community-first business, he continues his family’s legacy of social responsibility, driving initiatives that promote progress, opportunity, and sustainable development for the people of Solapur.
How much do integrated commercial hubs in Tier 2 & 3 cities contribute to India’s GDP growth today? In what ways do these ecosystems help decentralize economic activity away from metros?
Integrated commercial hubs in Tier 2 and Tier 3 cities are becoming critical drivers of India’s GDP growth, especially as metros reach saturation in land availability and cost competitiveness. These hubs attract industries and services that benefit from lower operating costs, proximity to local markets, and access to an untapped workforce. By offering organized retail, office parks, and hospitality in one ecosystem, they create formal sector jobs and stimulate consumption, which directly adds to local GDP. They also decentralize economic activity by providing alternatives to migration, allowing smaller cities to absorb investment that would otherwise flow only to metros. For instance, the redevelopment of legacy industrial assets in cities like Solapur into mixed-use campuses demonstrates how local ecosystems can foster both economic productivity and community vitality.
Which industries benefit most from integrated ecosystems in smaller cities? How are these ecosystems creating local jobs and reducing migration to metros? Do they help nurture local entrepreneurship, startups, and MSMEs?
Industries most benefited include IT/ITES, BFSI, organized retail, healthcare, hospitality, and education. Integrated ecosystems offer the infrastructure and environment these sectors need to scale efficiently in non-metro markets. By clustering diverse industries within one development, ecosystems create multiplier effects: a new IT park generates not only white-collar jobs but also demand for F&B, logistics, housing, and entertainment. This holistic job creation reduces out-migration, keeping talent closer to home. Further, ecosystems provide platforms for MSMEs and startups to thrive, whether through food courts hosting local brands, co-working spaces for entrepreneurs, or supply chain opportunities for small manufacturers. In Solapur, such developments have already created hundreds of jobs while giving local entrepreneurs access to premium retail and service infrastructure that was once available only in larger cities.
What urban planning strategies make commercial ecosystems in Tier 2 & 3 cities truly integrated and sustainable?
The most effective urban planning strategies in smaller cities integrate land-use diversity, walkability, and sustainability at the design stage. Mixed-use zoning ensures offices, retail, leisure, and housing coexist seamlessly, reducing commute times and improving quality of life. Walkable layouts, green landscapes, and shared public spaces foster community interaction and reduce dependence on private vehicles. Sustainability practices such as rooftop solar, rainwater harvesting, adaptive reuse of older assets, and waste segregation embed resilience into the ecosystem. Importantly, these strategies need to be tailored to local contexts rather than replicating metro blueprints. For example, converting a disused textile mill into a retail and office hub, as seen in Solapur, shows how adaptive reuse can preserve cultural identity while providing modern infrastructure. Integrated planning in Tier 2/3 cities thus balances efficiency, inclusivity, and environmental responsibility.
4. How are public infrastructure investments (roads, logistics, digital connectivity) enabling these ecosystems? How can private–public partnerships accelerate ecosystem development in smaller cities?
Public infrastructure is the backbone of ecosystem development in smaller cities. Highways, ring roads, and improved rail networks expand market access for businesses. Logistics parks and warehousing infrastructure support e-commerce and retail expansion. Meanwhile, affordable high-speed internet and upcoming regional airports allow IT/ITES firms to operate effectively outside metros. These investments significantly enhance the competitiveness of Tier 2/3 cities. To accelerate progress, private–public partnerships (PPPs) are critical. Private developers bring capital efficiency, design innovation, and execution capability, while governments provide land, clearances, and enabling infrastructure. In Solapur, integrated commercial hubs have benefited directly from road connectivity and upcoming air links, illustrating how PPPs can create virtuous cycles of investment and job growth. Such collaboration ensures that ecosystem development aligns with broader urban planning objectives.
How does digital infrastructure such as fintech, e-commerce, and online marketplaces empower these cities? Are businesses in Tier 2 & 3 cities adopting emerging tech (AI, automation) as quickly as metros?
Digital infrastructure has become a catalyst for inclusion in smaller cities. Fintech adoption expands access to credit for MSMEs, digital payments enable small businesses to transact seamlessly, and e-commerce marketplaces bring national and global reach to local producers. These tools level the playing field, allowing Tier 2/3 businesses to scale without relocating. While emerging technologies like AI and automation are being adopted more cautiously than in metros, the gap is narrowing due to cloud-based solutions and government-backed skilling programs. Integrated ecosystems support this adoption by offering reliable power, high-speed internet, and collaborative spaces.
How can integrated commercial ecosystems ensure equitable growth that includes women entrepreneurs and marginalized communities? What sustainability practices can be built in from the start?
Equitable growth requires ecosystems to embed inclusivity in their design and operations. This means reserving retail and co-working spaces for women-led MSMEs, ensuring childcare and safe mobility options, and creating programs that specifically engage marginalized groups in employment and entrepreneurship. By curating opportunities across hospitality, retail, and services, ecosystems can significantly raise female workforce participation in Tier 2/3 cities. Sustainability must also be integrated from inception: solar energy, water reuse, and waste-to-energy facilities reduce environmental impact while lowering operating costs. Adaptive reuse of old industrial structures, as demonstrated in cities like Solapur, preserves cultural heritage while promoting sustainability. When inclusivity and sustainability go hand in hand, integrated ecosystems not only generate jobs and GDP growth but also foster resilient communities that thrive over the long term.