A fast-growing business hub, Chennai’s topography and weather leaves it exposed to the twin challenges of flood risks and water stress.

City Class Score

Commercial Hubs
Corporate HQs, MNC presence, branded outlets, hotels, manufacturing, start-up ecosystem, transport linkages, population, and income.

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Export Champions
Manufacturing, industrial parks, export share and share change by category, air and port infrastructure, freight time to market, trade agreements, and expert interviews.

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Mobility Connectors
Passenger traffic, flight connectivity, air-cargo flights, port infrastructure, container ship sailings, and major road networks.

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Climate Resilient
Coastal and river flooding, extreme rain, extreme heat and humidity, cyclones, and water scarcity.

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Corporate HQs, MNC presence, branded outlets, hotels, manufacturing, start-up ecosystem, transport linkages, population, and income.

Go to the class information

Manufacturing, industrial parks, export share and share change by category, air and port infrastructure, freight time to market, trade agreements, and expert interviews.

Go to the class information

Passenger traffic, flight connectivity, air-cargo flights, port infrastructure, container ship sailings, and major road networks.

Go to the class information

Coastal and river flooding, extreme rain, extreme heat and humidity, cyclones, and water scarcity.

Go to the class information

In the early morning on Chennai’s Marina Beach, the vast stretch of golden sand buzzes with activity as locals jog, stroll, and engage in spirited games of cricket. The beach is also a foodie haven, with street vendors and pop-up stalls serving up local delicacies ranging from zesty pani puri to crispy fried bajji. In a city of 11 million, Marina Beach is a refreshing escape from the daily hustle and bustle of one of India’s most vibrant urban landscapes. Yet this beach isn’t always a peaceful retreat; storm surges and typhoons brewing in the Bay of Bengal often flood coastal areas and disrupt business and daily life.

Indian cities are generally more exposed to climate risk than many on our list. But Chennai faces unique challenges that set it apart from other Indian peers. Its low-lying coastal shores, seasonal monsoons, and high equatorial humidity create a perfect storm of climate risks. Nestled along the Bay of Bengal, the city’s topography and prevailing low-pressure systems exacerbate weather conditions, making it particularly vulnerable. While Chennai shines as an export champion and a bustling commercial hub, investing in climate resilience is crucial for sustaining its economic vitality and continued urban expansion.

Flooding has long been a threat, with records tracing back over a century. Unplanned urban sprawl and pollution have recently choked the city’s natural drainage channels, heightening the risk. The catastrophic floods of 2015 stand out as some of the worst in the city’s history, submerging vast areas for days and causing an estimated $3 billion in damages. Municipal officials have since prioritized resiliency measures, constructing storm drains, upgrading water channels, and installing new pumping stations. When Chennai faced similarly heavy rains in 2021 and 2023, daily life was disrupted but the extent of the damage was mitigated, with several flood-prone areas reporting no waterlogging during the rainy season.

Despite the looming threat of floods, Chennai grapples with another pressing issue: water stress. In 2019, the city experienced what has come to be known as “day zero” as its four main reservoirs ran dry, leaving many households without tap water. Extended drought and water mismanagement were identified as key factors, with rapid urbanization encroaching on vital water reservoirs and natural wetlands. In response, the local government and various non-governmental organizations have rolled out a range of initiatives, from rainwater harvesting and building desalination plants to investing in robust water infrastructure. Nevertheless, water stress continues to pose a challenge for this fast-growing city.