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Market: CVI shows uptick in economic activity

Fiinews by Fiinews
June 25, 2025
in Markets
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660 million attended 2025 Maha Kumbh Mela, says Singh

The latest edition of India’s City Vitality Index (CVI) shows a remarkable nationwide uptick in economic activity, with key drivers including infrastructure expansion, tourism, and major cultural gatherings,” said Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet.

“The 2025 Maha Kumbh Mela in Prayagraj had an outsized economic footprint — catalyzing growth across multiple cities and sectors. For instance, Prayagraj itself jumped 40 positions in the rankings in the CVI, driven by unprecedented footfall and corresponding spikes in tourism, hospitality, logistics, and local commerce,” he said http://kumbh.gov.in.

Nearby cities like Varanasi, Kanpur, and Lucknow also saw secondary growth effects, with improved infrastructure utilization, hotel occupancy, and transport linkages. Event-related investments in sanitation, public transport, and digital infrastructure had spillover effects on construction and local employment across the region, according to the index https://www.nseindia.com/.

The CVI uncovers new growth centers, with tier-2 and tier-3 cities such as Prayagraj and Kasganj now ranking in the top 25 emerging cities, highlighting the decentralization of India’s growth narrative https://sbi.com.in/.

The 2025 Maha Kumbh Mela Prayagraj witnessed extraordinary attendance of over 660 million people, making it the largest human congregation in recorded history. To put this in perspective, the footfall exceeded the combined population of all 27 European Union countries. This massive influx of pilgrims sparked unprecedented economic activity in Prayagraj and surrounding districts—impacting sectors such as hospitality, transportation, retail, and infrastructure, said CVI https://www.bseindia.com/.

Highlights of the City Vitality Index – Q2 2025:

•  Ahmedabad claimed the first rank among metros, rising four positions this quarter. Mumbai slipped to 5th, while Bengaluru, Chennai, and Delhi maintained their ranks, reflecting stable and consistent performance.

•  Sonipat has demonstrated steady growth in CVI score since 2020, reaching an all-time high in current quarter. The expansion of the Delhi Metro’s Yellow Line into Sonipat has fueled real estate and commercial development.

•  Kasganj and Kishanganj rose 20+ positions each due to enhanced connectivity from new highway and roadway construction, boosting access to metro cities.

•  Baramulla continued its upward trajectory, breaking into the top 50 cities, compared to the top 150. Sustained growth is attributed to railway projects and regional development programs.

•  Badgam and Bhavnagar saw dramatic rises from the top 300 to the top 100, fueled by greenfield and brownfield infrastructure investments.

•  Sixteen districts, including Agra, Etah, Anand, and Bhavnagar, have consistently moved up in CVI rankings over the last five quarters. Agra and Etah lead with an eight-quarter streak of improvement, reflecting strong and sustained growth.

•  Six districts have seen a steady decline in rankings for five or more quarters, with Nicobar falling for seven straight quarters, indicating areas needing focused policy support.

City Vitality Index – A Pulse on India’s Urban Economy

“The CVI’s unique integration of satellite-derived insights with macroeconomic indicators enables policymakers and investors to detect emerging hotspots and assess regional economic resilience,” Dr. Singh added. “With a correlation of over 80% with nominal GDP, and ~99% in highly urbanized regions, the CVI is a powerful decision-support tool for India’s growth story http://commerce.gov.in.”

As India’s urban landscape evolves, the City Vitality Index offers a high-resolution map of economic dynamism, shedding light on both traditional growth engines and unexpected disruptors, like cultural events and connectivity infrastructure, he said.

The Index leverages NASA’s Black Marble dataset to measure economic activity across more than 700 Indian districts, providing a first-of-its-kind view into microeconomic trends through earth observation technology. fiinews.com

Tags: Dun & Bradstreet
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