The McKinsey Global Institute (MGI) on April 22`2010 released a report titled “India’s Urban Awakening- Building Cities, Sustaining Economic Growth,” that contains some very disturbing predictions for the future of Indian cities.
The report says that in the next 20 years, the number of Indians living in cities across India will grow twice the present population, about 600 million, and India needs to invest at least $1.2 trillion to provide basic urban infrastructure for these 600 million urbanites. Besides, the operational costs of providing the urban infrastructure is going to cost the country another $1 trillion. It doesn’t help that the World Economic Forum’s Global Competitiveness Index ranks India 89th among 133 nations for its infrastructure.
According to Shirish Sankhe, lead author of the report, many of India's urban services could reach breaking points quickly if the country does not make changes.
The MGI report cites affordable housing, water and transport as other key problem areas while suggesting that the Indian government should enhance its budgetary allocation towards making its cities well-equipped to handle the pressure imposed by the burgeoning population in 2030.
Advice that India should take seriously because, according to the report, by 2030 some 68 Indian cities will have a population of more than 1 million people while there will be 13 cities with more than 4 million inhabitants. More importantly, Indian metropolitan cities, including Mumbai and New Delhi, will have turned into megacities with populations of 10 million and more. In fact, in the next two decades, Mumbai and New Delhi will also be among the five largest cities of the world.
If India does not get its act together now, the quality of life in its cities would be dismal in the next 20 years, which would, in turn, impose serious damage to the economic growth of the emerging giant.
The report says that in the next 20 years, the number of Indians living in cities across India will grow twice the present population, about 600 million, and India needs to invest at least $1.2 trillion to provide basic urban infrastructure for these 600 million urbanites. Besides, the operational costs of providing the urban infrastructure is going to cost the country another $1 trillion. It doesn’t help that the World Economic Forum’s Global Competitiveness Index ranks India 89th among 133 nations for its infrastructure.
According to Shirish Sankhe, lead author of the report, many of India's urban services could reach breaking points quickly if the country does not make changes.
The MGI report cites affordable housing, water and transport as other key problem areas while suggesting that the Indian government should enhance its budgetary allocation towards making its cities well-equipped to handle the pressure imposed by the burgeoning population in 2030.
Advice that India should take seriously because, according to the report, by 2030 some 68 Indian cities will have a population of more than 1 million people while there will be 13 cities with more than 4 million inhabitants. More importantly, Indian metropolitan cities, including Mumbai and New Delhi, will have turned into megacities with populations of 10 million and more. In fact, in the next two decades, Mumbai and New Delhi will also be among the five largest cities of the world.
If India does not get its act together now, the quality of life in its cities would be dismal in the next 20 years, which would, in turn, impose serious damage to the economic growth of the emerging giant.
For example, the MGI report forecasts that an average citizen would receive just 65 litres of water a day from the current figure of 105 litres daily. As a result, a large number of Indian will have to make do without access to potable water. The report also predicts an urban gridlock resulting out of severe limitations in the urban transportation system as well as 70 to 80 percent of sewage being left untreated.
However, not all is lost for India in this race for better urban infrastructure and, thus, better economic growth in the coming years. The McKinsey report does have some positive remarks too.
The report says: "India has a young and rapidly growing population—a potential demographic dividend… New MGI research estimates that cities could generate 70 percent of net new jobs created to 2030, produce around 70 percent of Indian GDP, and drive a near fourfold increase in per capita incomes across the nation.”
The report claims that if India is able to match the speed of its urbanization with its rapid population growth, it could reap significant benefits, bringing its economy closer to the double-digit growth rate, which the Indian government aspires for.
If indeed, the Indian government pulls its act together, the report says, “This urbanization will happen at a speed quite unlike anything India has seen before.”
However, not all is lost for India in this race for better urban infrastructure and, thus, better economic growth in the coming years. The McKinsey report does have some positive remarks too.
The report says: "India has a young and rapidly growing population—a potential demographic dividend… New MGI research estimates that cities could generate 70 percent of net new jobs created to 2030, produce around 70 percent of Indian GDP, and drive a near fourfold increase in per capita incomes across the nation.”
The report claims that if India is able to match the speed of its urbanization with its rapid population growth, it could reap significant benefits, bringing its economy closer to the double-digit growth rate, which the Indian government aspires for.
If indeed, the Indian government pulls its act together, the report says, “This urbanization will happen at a speed quite unlike anything India has seen before.”
India Kindly Awake...
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