New Delhi, May 12 -- India's Tier-2 cities are emerging as major centres for international retail expansion, with smaller urban markets increasingly attracting global brands and institutional investment, according to a study released by Knight Frank India on Tuesday.

According to the report, India is currently witnessing two parallel retail economies -- a mature Tier-1 market affected by ageing retail stock, and a younger Tier-2 market with newer infrastructure and faster growth.

Chandigarh topped the International Brand Penetration Rankings 2026 despite having a population of only 1.3 million, outperforming larger cities in terms of consumption power, Grade A retail quality and international brand density.

Mangaluru emerged as the mos...