What places in India have the best quality of life?

Ignorant American here. We hear a lot about poverty and heat and poor air quality, but obviously there's a big middle class in India now. Do they live in Mumbai and New Delhi and just endure the negative parts of urban life, or are there smaller places where the quality of life is generally pretty good? (I guess Chandigarh might be one? If I'm wrong, please let me know.)