Cities are “Historical Artifacts” of trade and commerce. They are the nexus points of intersection of humanity and goods. They are commerce points, the nail that holds the trade of stocks and ties it to commerce and bidding. They grew, because growth demanded it, and they had no place to go but up!.
Mumbai grew because of textile industry and bollywood. Hyderabad for defense and considered a 2nd capital of India and like wise.
Amaravati is a small town surrounded by 2 tier2 towns Guntur and Vijayawada. Flip side Amaravati has Caste issues. People living there do not accept other castes and religions. Only cities with cosmopolitan touch tend to grow and develop. It can only be a 2 or 3 tier town in the next 20-30 years.
The only difference between a tier1 and a tier 2 is tier2 does not have one or two Giants of industry that they support and draw from.
City’s are like large corrals of large animals. They have to be supported, tended to, fed and watered and bedded!
Small towns don’t have the large animals, they may have a franchise of a larger animal like a McDonald’s etc, but they don’t have the corporate office, the large animal.
People are drawn to city’s because that is where the work is. Creativity is not the driving force, jobs are, and have always been, and when you have Captains of Industry in large “Animal” buildings, then you understand what make the driving force for cities like Hyderabad.
Cities boom and towns struggle in the current world. Economists traditionally have been skeptical about place-based policies, in part because they believed market forces would promote convergence among more- and less-developed areas, and also because they preferred policies directed at poor people rather than poor areas.