Jaipur beats Lucknow and Indore in GDP. Can it become India’s next growth engine?

Jaipur, long known for its palaces and tourism appeal, is emerging as one of India’s fastest-growing business and investment destinations. From gems and jewellery exports to destination weddings, IT back offices and industrial infrastructure, the Pink City is increasingly positioning itself as a leading Tier-2 growth hub.

Chartered accountant and financial influencer Sarthak Ahuja believes Jaipur could be the one city to watch for entrepreneurs and investors looking beyond the country’s traditional metropolitan centres.

“If I had to bet on just one city of India, which I expect to show the maximum amount of growth in businesses, startups, real estate, industries and exports, it would be Jaipur,” Ahuja said.

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Faster-than-average growth

According to Ahuja, Jaipur’s economy expanded by more than 16% last year, nearly three times the national average. The city has also emerged as one of India’s top-ranked Tier-2 cities across multiple indicators and now surpasses cities such as Lucknow and Indore in nominal GDP.

Real estate activity has been particularly strong. Ahuja said property sales and values in the city grew by almost 98% in 2025, reflecting rising demand from both investors and end-users.

The city’s cultural appeal and global branding have also made it increasingly popular among foreign visitors and non-resident Indians.

Gems and jewellery powerhouse

One of Jaipur’s biggest strengths lies in its centuries-old gems and jewellery industry.

According to Ahuja, Jaipur is the only city in the world capable of processing more than 300 varieties of precious and semi-precious stones. The city accounts for more than 15% of India’s gems exports and over 60% of kundan jewellery exports, making it a major hub for rubies and coloured gemstones.

India’s destination wedding capital

Jaipur has also become synonymous with luxury destination weddings.

The city hosts around 10,000 weddings every season, attracting affluent families and NRIs. Government initiatives such as “Wed in India” have further boosted demand for hospitality, events, catering and related businesses.

For entrepreneurs in food and beverages, luxury services and event management, the city presents a rapidly expanding market.

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Traditional crafts meet global demand

Jaipur’s traditional handicrafts, including block printing and blue pottery, are increasingly finding buyers overseas.

Ahuja said the city’s handicraft ecosystem is becoming a key part of India’s export story as international consumers seek authentic, culturally rooted products.

Global capability centres

Jaipur is also benefiting from India’s growing global capability centre (GCC) industry.

Lower costs are proving to be a major advantage. Office rentals in Jaipur are estimated to be around 54% lower than those in Tier-1 cities, while the city produces more than 100,000 graduates annually across technology, finance and management disciplines.

This combination of talent and affordability is making Jaipur an attractive destination for multinational companies setting up backend operations.

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Infrastructure and industrial push

Infrastructure investments are further supporting the city’s growth ambitions.

Special economic zones being developed by RIICO, improved road connectivity to Delhi and Mumbai, and the presence of an international airport are strengthening Jaipur’s position as an industrial and logistics hub.

According to Ahuja, Jaipur’s unique mix of cultural heritage, specialized industries, skilled talent, infrastructure and cost competitiveness creates a powerful economic moat.

For businesses looking beyond the metros, the Pink City may no longer be just a tourist destination—it could become one of India’s most compelling growth stories in the years ahead.

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