India City Competitiveness Index 2016 uses the Macroeconomic Competitiveness: The Diamond Model to determine the prosperity levels of Indian cities. It comprises of four pillars, which are then divided into 12 sub-pillars to map all the crucial dimensions of the city. These sub-pillars are further classified into specific parameters connected with data-points, which helps to project the ground reality of a region.

The methodology comprises of a 3 stage analytical process which is undertaken using a bottom-up approach.

  • Indicators evaluate as many compelling aspects of the Sub-Pillars as possible. The weighted average of indicators is used to calculate the sub-pillar score, where the weights are determined by using principal component analysis (PCA).
  • A related set of Sub-Pillars which are unique and together, give a detailed view of Pillar. A simple average of sub-pillars scores is used to calculate the pillar score. 
  • Pillar represent the broad conceptual categories that define city competitiveness. The Index is calculated as the equally-weighted average of a city’s score on each of four pillars.

Key Takeaways


  • Aid policy makers in improving city productivity through holistic growth as well as highlighted areas
  • Direction to policy makers by proposing policy faults and suggesting suitable measures to the government and concerned public
  • Suggestions for improvements in environmental and transportation sustainability
  • Create a foundation for city branding and development of clusters around that theme through highlighted strengths and weaknesses
  • Pointers on how to formulate business-friendly policies


  • Obtain a well-researched market overview before entry
  • Pillars studied provide pointers for firms, no matter which stage of growth business is in
  • Basis for formulating location strategy based on strengths of each individual city
  • Invaluable information to define business growth path/future course of action
  • Important resource for board level strategists and consultants to cross-map information needed



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