+ All Categories
Home > Travel > The power of I (India) in BRICS

The power of I (India) in BRICS

Date post: 13-Jan-2015
Category:
Upload: amit-kapoor
View: 1,407 times
Download: 3 times
Share this document with a friend
Description:
Presented by Dr. Amit Kapoor
Popular Tags:
127
INSTITUTE FOR COMPETITIVENESS -RESEARCH
Transcript
Page 1: The power of I (India) in BRICS

INSTITUTE FOR COMPETITIVENESS -RESEARCH

Page 2: The power of I (India) in BRICS

BRICS

Opportunity

Cloud Power

India

Threat

Page 3: The power of I (India) in BRICS

BRICS

Opportunity

Cloud Power

India

Threat

Page 4: The power of I (India) in BRICS

MIcroeconomics of Competitiveness

Individuals

MAcroeconomics of Competitiveness

Aggregates

Microeconomics of Competitiveness and Macroeconomics of Competitiveness

Page 5: The power of I (India) in BRICS

Natural Endowments Population and GDP’s of the world

India

ChinaUSA

7% of the Land area,5% of the Population,

23% of the GDP

2.3% of the Land area,

17.8% of the Population, 2.6% of

the GDP

7.2 % of the Land area,

19.2% of the Population, 10.4% of

the GDP

Brazil

12.6% of the Land area,

17% of the Population, 2.6% of the GDP

Russia

6.5% of the Land area,

2.8% of the Population, 3.5% of

the GDP

South Africa

0.93% of the Land area,

0.72% of the Population, 0.58% of

the GDP

Page 6: The power of I (India) in BRICS

GDP over the years

19901991199219931994199519961997199819992000200120022003200420052006200720082009201020110

1000000000000

2000000000000

3000000000000

4000000000000

5000000000000

6000000000000

7000000000000

8000000000000

Brazil China India Russian Federation South Africa

GD

P a

t C

urr

ent

Pri

ces

Page 7: The power of I (India) in BRICS

Area in 2011

Brazil China India Russian Federation South Africa0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

84594209327480

2973190

16376870

1214470

Area in 2010, square Km

Page 8: The power of I (India) in BRICS

Population over the years

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2011

0

200000000

400000000

600000000

800000000

1000000000

1200000000

1400000000

1600000000

Brazil China India Russian Federation South Africa

Popula

tion in B

illions

Page 9: The power of I (India) in BRICS

Primary Secondary and Tertiary Sector

World Brazil China India Russian Federation South Africa0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

2.815.30

10.10

17.74

4.04 2.48

26.3228.07

46.7227.12

36.6830.83

70.8766.63

43.19

55.1459.28

66.69

Agriculture (Value Added % of GDP) Industry (Value Added % of GDP)

Services (Value Added % of GDP)

Page 10: The power of I (India) in BRICS

Manufacturing Value Added as a percentage of GDP, 2010

World

Brazil

China

India

Russian Federation

South Africa

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

16.71

16.23

29.62

14.54

16.43

14.66

Page 11: The power of I (India) in BRICS

Structural transformation in the World Economy

Source: WDI and Institute for Competitiveness Analysis

5%

33%

61%

Agriculture Industry Services

3%

27%

70%

Agriculture Industry Services

Structure of the World Economy in 1991 Structure of the World Economy in 2010

Page 12: The power of I (India) in BRICS

Imports and Exports as a Percentage of world Imports and Exports

Brazil Russia India China South Africa 0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

1.32 2.63

1.44

10.34

0.53

1.24

1.612.27

9.03

0.61

Share in world total exports (2010) Share in world total imports (2010)

Source: WTO and Institute for Competitiveness Analysis

Page 13: The power of I (India) in BRICS

Projections according to IMF

Source: IMF and Economist Intelligence Unit for 1970-2005:Economist Intelligence Unit forecasts for 2006-20

1971-1980

1981-1990

1991-2000

2001-2005

2006-2020

0

0.5

1

1.5

2

2.5

3

3.5

4

4.54.2

3.43.3

3.8

3.5

Incre

ase in a

countr

y’s

real G

DP

, at

consta

nt

2005

PP

P U

S$

China

United States

India

Brazil

Russia

Indonesia

South Korea

UK

Germany

France

Mexico

Canada

Turkey

Japan

0 5 10 15 20 25 30

26.7

15.9

12.2

2.4

2.3

2.3

2.1

1.9

1.9

1.5

1.4

1.3

1.3

1.1

Contribution to global growth (2006-20, %)

Page 14: The power of I (India) in BRICS

GDP over the years

Source: WDI and Institute for Competitiveness Analysis

2.65% in

2010

2.64% in

2010

0.58 % in

2010

10.43% in 2010

3.53 % in

2010

19901991199219931994199519961997199819992000200120022003200420052006200720082009201020110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Brazil China India Russian Federation South Africa

Page 15: The power of I (India) in BRICS

FDI Investments

Source: WDI and Institute for Competitiveness Analysis

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-50000000000

0

50000000000

100000000000

150000000000

200000000000

Brazil China IndiaRussian Federation South Africa

Fore

ign d

irect

inve

stm

ent,

net

infl

ow

s (B

oP

, curr

ent

US$)

Page 16: The power of I (India) in BRICS

FDI Inflows and Outflows

Source: WDI and Institute for Competitiveness Analysis

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

-1

0

1

2

3

4

5

6

7

World Brazil China

India Russian Federation South Africa

FD

I in

flow

s

as a

% o

f G

DP

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

-4

-3

-2

-1

0

1

2

3

4

5

6

World Brazil China India

Russian Federation South Africa

FD

I in

flow

s

as a

% o

f G

DP

Page 17: The power of I (India) in BRICS

Source: A.T. Kearney 2010 Confidence Index, WDI and Institute for Competitiveness Analysis

(1)

(3)

(2)

(6)

(10)

( )

(11)

(19)

(14)

(4)

(8)

(12)

(13)

(5)

(17) Other Gulf states

Hong Kong

France

Vietnam

United Arab Emirates

United Kingdom

Canada

Mexico

Australia

Poland

Germany

Brazil

India

United States

China

1.26

1.28

1.29

1.29

1.29

1.32

1.32

1.32

1.33

1.35

1.43

1.53

1.64

1.67

1.931

2

3

4

5

6

7

8

9

10

11

12

13

14

15

+

+

+

+

+

+

+

+

-

-

-

-

Confidence Index and sought out by many Investors

+

-

Moved Up

Maintained

Moved Down

Not among top 20 in 2007 Index

High ConfidenceLow ConfidenceValues Calculated on a 0 to 3 Scale

Page 18: The power of I (India) in BRICS

Infrastructure development

Source: WDI and Institute for Competitiveness Analysis

Euro-pean Union

World Brazil China India United States

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.084.5

55.1

4.3

62.3

45.5

66.4

Perc

enta

ge o

f P

aved R

oads

World

Brazil

China

India

South Africa

0.0 20.0 40.0 60.0 80.0 100.0 120.0

74.1207925791558

98.3

99.4

66.3

75

Percentage of People with Access to Electricity (2009)

Page 19: The power of I (India) in BRICS

Total Reserves

Source: IMF, WDI and Institute for Competitiveness Analysis

Note: Total reserves comprise holdings of monetary gold, special drawing rights, reserves of IMF members held by the IMF, and holdings of foreign exchange under the control of monetary authorities. The gold component of these reserves is valued at year-end (December 31) London prices. Figures taken are in current U.S. dollars.

1995

1997

1999

2001

2003

2005

2007

2009

2011

0

500000000000

1000000000000

1500000000000

2000000000000

2500000000000

3000000000000

3500000000000

Brazil ChinaIndia Russian FederationSouth Africa

Tota

l R

eserv

es in C

urr

ent

Billion U

S D

ol-

lars

Brazil China IndiaRussian Federation South Africa Rest of the world

Page 20: The power of I (India) in BRICS

Literacy and Sanitation: Critical Areas

Source: WDI and Institute for Competitiveness Analysis

1990 2000 20100

10

20

30

40

50

60

70

80

90

100

World China India

Lit

era

cy r

ate

s a

s a

perc

enta

ge o

f to

tal P

opula

tion

Euro-pean Union

World China India United States

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.099.1

76.5

58.054.0

100.0

Access t

o

Impro

ved S

anit

ati

on F

acilit

ies a

s a

perc

enta

ge o

f P

opula

tion

Note figures for chart 2 are for 2008.

Page 21: The power of I (India) in BRICS

Geopolitical Hotspots

China

IndiaCross-strait relations

Offshore Oil reserves

Kashmir Conflict Tibet Conflict

Source: Deutche, Institute for Competitiveness Analysis

Page 22: The power of I (India) in BRICS

Macroeconomic and Social Issues- China and India

Source: Eurostat, Institute for Competitiveness Analysis

Poverty headcount below 1.25 $ a day

Poverty headcount below 2 $ a day

• High Commodity prices/high dependence on Energy Imports

• Investor Sentiments• Protectionist Trends in

developed markets (and home)

• Huge Income disparities bear the risk of social tensions

USA

India

China

EU 27

0 5 10 15 20 25 30 35 40 45

40

36

41

30

0

10

20

30

40

50

60

70

80

15.92

36.3141.64

75.62

Ch...

Page 23: The power of I (India) in BRICS

China and India : A List of superlatives

China • China is the largest

consumer of Energy and rare earth metals.

• China is the largest exporter of the world today.

• China launched the “world’s largest housing investment program and Macau has become the world’s top gambling destination.

• China is the largest food producer in the world in 2010.

• Biggest consumer of grain, meat, coal and steel.

India • India is the largest

consumer of Gold.• India is the biggest

producer of Tea, Coffee, Jute and Cotton.

• India is the largest producer of sponge Iron and expected to become the second largest producer of steel.

• India is the second largest producer of wheat and largest producer of pulses but needs to import pulses due to growing domestic demand.

Sources : Various sources, Institute for Competitiveness Analysis

Page 24: The power of I (India) in BRICS

Cost Advantage and Growth drivers of Indian IT Industry

Cost Advantage to the India IT services as compared to EU • The cost of an engineer in India is

only about 20-40% in comparison to EU.

• India’s offshore billing is at around 20-35$ per hour which is 50-70% lower than the EU.

• India has the largest number of quality certifications in the field of IT today.

• BPO sector employs around 768,000 people at the end of 2010.

• Knowledge Services Exports or KPO (Next generation services in India) grew at rate of 19.4% per annum and reach $ 1 billion in 2010.

• The contribution of India IT sector to GDP grows from 1.2% in 1977-78 to 6.1% in 2009-10.

• India’s IT/ITeS exports has grown at a compounded annual growth rate of 23.1% between 2005-06 and 2009-10. The software and IT services sector (excluding hardware) posted revenues of 63.7 billion $.

Growth Drivers of Indian IT Industry

• Increasing global spending on IT and Technology.

• Global services providers expanded their base in India to provide onshore-offshore services at a low cost. They have a huge Indian employees strength (Accenture- 40000+, IBM-1,30,000, HP- 15000+, CapGemini- 26000+)

• Emergence of the Global Delivery model by the Indian IT firms and Indian companies have expanded globally through opening offices and M&A.

• Dedicated software technology parks and SEZs in India.

• High connectivity by rail, road and air in major cities where IT companies have established.

• Government Policy supports to IT.• Huge talent pool with more than .37

million graduates and post graduates available to start career in IT.

Sources : Various sources, Institute for Competitiveness Analysis

Page 25: The power of I (India) in BRICS

Cost Advantage and Growth drivers of Indian IT Industry

State Number of SEZ Companies

Andhra Pradesh 59

HP, Amazon, Verizon, Convergys, EXL, TCS, Wipro,

Infosys

Maharashtra 51

Cognizant, Convergys, EXL, KPIT, Msource,

Siemens, Accenture

Tamil Nadu 38Infosys, Wipro,

Accenture, Cognizant

Karnataka 37Infosys, TCS,

Wipro, HP, SIEMENS, Compaq

Delhi and NCR 28

IBM, Genpact, Oracle, American

Express, Convergys, HP

West-Bengal 19IBM, Cognizant,

TCS, Infosys

Gujarat 15 TCS, Infosys, Wipro

Future Opportunities • India is expected to become the hub of

engineering process outsourcing (EPO) and market size will touch 30 billion $ by 2015.

• Bechtel, General Motors, Ford, John Deere, Caterpillar, Silicon Automation Systems and John Brown Engineering are among the global leaders that have established their engineering services divisions in India.

• The KPO industry is now growing rapidly, with several companies establishing third-party operations for functions such as data analytics and data modeling. According to CRISIL, India’s KPO export market constitutes around 8 per cent of the country’s ITeS revenues and employs nearly 3 per cent of its workforce. Growth drivers include the high productivity of India’s human resources and outsourcing of knowledge processes by SMEs.

• Outsourcing of legal and intellectual property research is presently at an early stage of development in the country. However, this space holds tremendous growth potential. India offers impressive opportunities to scale up, with a large pool of legal professionals (with more than 1million lawyers and 70,000 law graduates qualifying every year) and significant cost arbitrage. In addition, Indian lawyers bill at one-tenth of their counterparts in the US (US$ 40 to US$ 60 per hour in India, compared with US$ 350 per hour in the US).

Sources : Various sources, Institute for Competitiveness Analysis

Page 26: The power of I (India) in BRICS

State of Education

Source: Marketing Whitebook 2011-12, Businessworld.

0.02 0.06 0.16 0.34 0.35

0.34

0.8

1.99

2.26

4.98

Faculty in Millions in India 2008

Veterinary SciencesAgricultureEducationLawMedicineLawEngineeringManagementScienceArts

2008 2009 2010 2011 2012 2013 2014 2015 2016 20180.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

11.011.6

12.313.0

13.714.4

15.316.1

17.018.0

Enrollment in Higher Education to grow at 5.6% CAGR

Page 27: The power of I (India) in BRICS

Degree graduates breakup and manpower requirements in India

Source: IGNOU and CII

Construction

Wholesale and Retail

Community Services

IT/BPO

Banking and Insurance

Communication

Hospitality

Transportation and Storage

Healthcare

Manufacturing

Agriculture

Public Admin & defence

Other Business Services

0 5 10 15 20 25 30 35

17

6

6

3

3

2

3

2

1.5

13

32

2.5

0.5

Manpower Intake from 2011-16 (Millions)

26.00%

21.60%

10.20%5.40%

4.80%2.10%1.70%1.60%

1.10%0.30%3.40% 20.80%

BA

B.Sc

B.Com

Open Universi-ties

Polytechnic Courses

Medicine and Pharma

B.Ed

M.Sc

M.Com

Ph.D and higher

MA

Others

Page 28: The power of I (India) in BRICS

Global Players Operation in India and IT service expors

HP $126 billion

Oracle 27881.71 million Rs

Cognizant $4.6 billion

Accenture $21.6 billion

Dell $61.5 billion*

Lenovo $21594 million*

WNS $154.2 million*

Global Players Revenues (In 2009-10)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-120

5

10

15

20

25

30

9.4

11.6

13.314

15.95

17.5

6

8.8

10.4 11.2

13.4

15.12

1.7 1.8

25.8

2.1

14.15

16.67

Project Oriented Outsourcing Support & Training

IT S

erv

ice E

xport

s in U

S $

billion

Source: Company reports Institute for Competitiveness Analysis

* Revenues are for 2010-11

Figures for 2011-12 are projected

Page 29: The power of I (India) in BRICS

IT Enabled Service Sector : Exports Driven

Source: Company reports Institute for Competitiveness Analysis and NASSCOM Strategic Review 2010 The IT–BPO sector in India

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-120

2

4

6

8

10

12

14

16

18

0.50.9 1.1

1.6 1.92.3

2.633333333333332.99047619047619

4.6

6.3

8.4

10.9311.7

12.4

14.828

16.4774285714286

Domestic MarketExports

Page 30: The power of I (India) in BRICS

IT Enabled Service Sector : Exports Driven

Source: Deccan Herald, Business Standard, Assocham Study on BPO and Institute for Competitiveness Analysis

At Present , India's BPO industry is facing a stiff competition from countries like Mexico, Philippines, Malaysia, China, Canada and IrelandAttrition Rates have Increased to 55% from about 40% from December 2010-April 2011

Reasons:1. Campus recruitments

2. Ample employment opportunities

3. Part time Jobs Pharmaceuticals

Financial Services

Retail

IT Sectors

FMCG

Infrastructure

Automobiles

Manufacturing

0 10 20 30 40 50 60 70

60

60

55

55

45

45

45

45

Busin

ess D

om

ain

s in w

hic

h B

PO

serv

ice a

re

off

ere

d

Page 31: The power of I (India) in BRICS

Number of Engineering Education Institutions in India

Source : ENGINEERING EDUCATION IN INDIA, 2007 IIT Bombay

_x000b_< 12 Months

_x000c_12-20 Months >21 Months

0

0.1

0.2

0.3

0.4

Employbility - Engineering Graduates after Degree

Completion

_x000b_< 12 Months

_x000c_12-20 Months

_x000b_> 21 Months

0

0.1

0.2

0.3

0.4

0.5

0.6

Employbility - Diploma Hold-ers after Degree Completion

Source: Handbook of skill scenario in India, 3rd global summit

Page 32: The power of I (India) in BRICS

Infosys

TCS

Wipro

HCL Techno

Mphasis

Oracle Fin

Patni Computers

Tech Mahindra

Rolta India Ltd

0.00 100,000.00 200,000.00 300,000.00

128,307.86

198,068.64

78,025.38

26,435.04

7,392.00

15,044.95

3,685.00

8,432.80

1,577.51

Market Cap in Rs Crore

Mar ' 11Mar ' 10Mar ' 09Mar ' 08Mar ' 070.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

Infosys TCS WiproOracle Fin Tech Mahindra

Opera

ting I

ncom

e Y

ear

on y

ear

IT companies in India

Institute for competitiveness Analysis

Page 33: The power of I (India) in BRICS

11%

32%

4%19%

5%

7%

8%

5%4%

3%1%2%

India Offshoring Industry Structure (2009)

AutomativeTelecomConsumer Electron-icsSemi-conductorsAerospaceConstructionComputing Sys-temsInfrastructureEnergyMedical DevicesIndustrial Automa-tionOthers

16%

13%

11%

10%8%

8%

5%

5%

4%

3%1%

17%

India Offshoring Industry Structure (2020)

AutomativeTelecomConsumer Electron-icsSemi-conductorsAerospaceConstructionComputing Sys-temsInfrastructureEnergyMedical DevicesIndustrial Automa-tionOthers

Source : NASSCOM

IT Offshoring Structure in India

Page 34: The power of I (India) in BRICS

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

500

1000

1500

2000

2500

3000

3500

4000

Labor Productivity ( Services in US $)

Labor Productivity in India

Institute for competitiveness Analysis

Page 35: The power of I (India) in BRICS

ICT service exports, service exports

Source: WDI and Institute for Competitiveness Analysis

45%

4%

3%

14%

34%

Services exports in Gross US$ current terms

European Union China IndiaUnited States Rest of the world

2005 2006 2007 2008 20090

10

20

30

40

50

60

European Union World China India United States

ICT E

xport

s a

s a

per-

centa

ge o

f Tota

l serv

ice

Export

s

43%

2%14%

7%

33%

ICT Services' exports in Gross US$ current terms

European Union China India United Kingdom

Page 36: The power of I (India) in BRICS

High Technology and Low Technology futures

Hi Tech Low Tech

The Competitive Economy

Page 37: The power of I (India) in BRICS

Apple Economy

Source: Institute for Competitiveness Analysis

Sales Price

Purchased Inputs

Cost of Goods sold

Direct Labor

Value Added

Gross Profit (Value Captured)

SG&A SG&A

R&D R&D

Depreciation

Depreciation

Net Profit

Net Profit

$ 224 Wholesaler Price to Apple

Gross Cost

$45 Retail Margin

$30 Dist.

Margin

$80 Apple Gross margin

Gross margin for 7 Key inputs

$33

$ 144 cost of all Inputs

$ 83 cost of goods for 7 Key

Inputs

$28

Gross margin for 7 Key inputs

$33

Retail Price $299

Wholesale Price $299

Cost of Inputs $144

Cost of sales for 11 key inputs $102

Gross margin for 7 Key inputs $33

$4 other cost Portal player Chip

$78 still to be analyzed

cost for 6 Key Inputs

Cost of 444 still to be analyzed

USA Japan

Korea

Total

Distribution and Retail

$75 $74

Apple $80 $80

Seven Identified Inputs

$7 $26 $1 $34

Portal Player suppliers

$1 $1

TOTAL $163 $26 $1 $190

Page 38: The power of I (India) in BRICS

Apple Economy

Source: IFC Analysis

Component Supplier Company HQ Location

Manufacturing Location

Estimated Factory Price

Cost as % of all iPod Parts

Gross Profit Rate

Estimated Value Capture

Hard Drive Toshiba Japan China $73.39 51% 26.5% $19.45

Display Module Toshiba- Matsushita

Japan Japan $20.39 14% 28.7% $5.85

Video/ Multimedia Processor

Broadcom US Taiwan/Singapore

$8.36 6% 52.5% $4.39

Portal Player CPU Portal Player

US US or Taiwan $4.94 3% 44.8% $2.21

Insertion, test and assembly

Inventec Taiwan China $3.70 3% 3.0% $0.11

Battery Pack Unknown $2.89 2% $0.00

Display Driver Renesas Japan Japan $2.88 2% 24.0% $0.69

Mobile SDRAM Memory- 32 MB

Samsung Korea Korea $2.37 2% 28.2% $0.67

Back Enclosure Unknown $2.30 2% 26.5%

Mainboard PCB Unknown $1.90 1% 28.7%

Subtotal of 10 most expensive inputs

$123.12 85% $33.37

All other inputs $21.28 15%

Total all iPod inputs $144.40 100%

Source: Case study on Apple ipod Ecosystem by University of Berkeley

Page 39: The power of I (India) in BRICS

Population : Complex Perspectives

Source: United Nations, World Urbanization Prospects, The 2009 Revision, Asia 2050, Asian Development Bank

0

50

100

150

200

250

300

274

84

136

3827

178

34

62

32

58

Total Urban Population 2010

China

India

Popula

tion in M

illions

PRC India Asia0

1000

2000

3000

4000

5000

6000

13541215

3958

14171614

4888

Total Urban Population 2010 - 2050

2010Projected 2050

Popula

tion in M

illions

Page 40: The power of I (India) in BRICS

Urban Perspectives

Source: US. Bureau of Labor Statistics, Boston Consulting group , IFC Analysis

total urban population (mn)

Northeast Asia

South Asia

South east asia

Central asia

0 500 1000 1500 2000 2500 3000 3500

1649

805

496

252

96

3247

1284

1261

520

182

2050 2010Urbaniza-tion (%)

Northeast Asia

South Asia

South East Asia

Central asia

0%

10%

20%

30%

40%

50%

60%

70%

80%

41%

50%

30%

42%

52%

64%

74%

55%

65%67%

%

Urb

an P

opula

tion

Page 41: The power of I (India) in BRICS

0-14 Years

15-24 Years

25-49 Years

50-59 Years

60+ Years

All ages0

200

400

600

800

1000

1200

1400

Year 2000Year 2020

Popula

tion in M

illions

0-14 Years

15-24 Years

25-49 Years

50-59 Years

60+ Years

All ages0

200

400

600

800

1000

1200

1400

Year 2000

Year 2020

Popula

tion in M

illions

Demographic Shifts for India

Page 42: The power of I (India) in BRICS

Health Expenditure and Life Expectancy

Source: WDI and Institute for Competitiveness Analysis

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2009

0

10

20

30

40

50

60

70

80

90

European Union World ChinaIndia United States

Lif

e E

xpecta

ncy a

t B

irth

In n

um

ber

of

Years

1995

1997

1999

2001

2003

2005

2007

2009

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

European Union World China India

United States

Healt

h E

xpendit

ure

Per

Capit

a in C

urr

ent

US $

Page 43: The power of I (India) in BRICS

Trade in the World Economy

Source: WDI, WTO and Institute for Competitiveness Analysis

EU 2

7

Brazil

China

Russian

Fed

erat

ion

Indi

aUSA

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

28.9 24.8

58.7 47.5 51.4

27.6

Tra

de t

o G

DP

rati

o

(2007-0

9)

EU 2

7

Brazil

China

Russian

Fed

erat

ion

Indi

aUSA

0 2 000 4 000 6 000 8 000

10 000 12 000 14 000

10 016

1 969 1 921

5 064

522

12 849

Tra

de P

er

capit

a (

US$,

2007-0

9)

2005 2006 2007 2008 2009 20100

10000

20000

30000

40000

50000

60000

70000

80000 India - EU trade

EU imports from India EU exports to IndiaEU trade with India

Tra

nsacti

ons in B

illions o

f Euro

s

16%

13%

2%

14%

55%

Trade in the world

European Union China India United States

Page 44: The power of I (India) in BRICS

Trade in the World Economy

Source: World 3.0, fig 1.2, pp. 18, by Pankaj Ghemawat

MarketRegulation

Market Integration

European Union

China India United States

World0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1413964

255

1457

8697

1220 1168

155

944

8275

Imports (Billions of Euro) Exports (Billions of Euro)

Source: WDI, WTO and IFC analysis

No

No

YesYes

World 1.0 World 2.0

World 3.0

World 0.0

Page 45: The power of I (India) in BRICS

Barriers to Entry or Areas of Progress

Source: Photo 1. Great Wall of China, accessed from www.crestock.com Photo 2. Researchers/ People carrying nose cone of a rocket to Thumba, www. Skyscrapercity.com

Page 46: The power of I (India) in BRICS

According to a press release of WTO on 7 April 2011 following the 14.5% surge in the volume of exports in 2010 world trade growth should settle to a more modest 6.5% expansion in 2011.

Trade openness of the region, measured by the trade-to-GDP ratio, is projected to increase for Asian Developing regions sharply from 39.4% in 2010 to 74.4% in 2030 . Among the 12 economies, Hong Kong, China Malaysia Singapore and the Philippines are notable for maintaining very high trade/GDP ratios for a long period of time (Krugman 1995). By the end of the projection period, Thailand and Viet Nam too are likely to join this group of “super trading economies”. People’s republic of China’s trade/ GDP ratio is projected to grow from 41.7% in 2010 to 81.9% in 2030.

Source: Asian Trade Flows: Trends, Patterns, and Projections Prema-chandra Athukorala No. 241 | January 2011

Primary Manufacturing Services0

100

200

300

400

500

600

361

449

392

254

554

338

Sectoral Distribution of FDI Projects, 2009-10

20092010

Trade Projections by WTO And ADB

Page 47: The power of I (India) in BRICS

Competitiveness and World Economy

Context for Firm Strategy and

Rivalry

Related and Supporting Industries

Demand Conditions

• Local rules and incentives that encourage investment and productivity e.g.

- salaries,- incentives for capital investments, - intellectual property protection• Vigorous local competition i.e., - Openness to foreign and local

competition; - Sophistication of company operations

Local availability of suppliers and supporting industriesPresence of clusters instead of isolated firms

Sophisticated and demanding local customers and needs e.g.,- Strict quality, safety, and environmental standards– Consumer protection laws – Government procurement ofadvanced technology – Early demand for products andServices.

Access to high quality business inputs i.e., - Natural endowments,- Human resources, - Capital availability,- Physical infrastructure,- Administrative infrastructure,- Information infrastructure, - Scientific and technological infrastructure

Factor Conditions

• Many things matter for competitiveness• Successful economic development is a process of improving the business environment to enable increasingly

sophisticated ways of competing

Source: The Competitive Advantage of Nations, Michael. E. Porter

Page 48: The power of I (India) in BRICS

Stages of the Economy – Indian Context

Factor-driven economies: Factor-driven economies focus on low-cost basic factor conditions, such as low-skilled labour, natural resources and geographic location. Factor-driven economies need to focus on input costs, macro, political and legal stability, efficient basic infrastructure and lowering the regulatory cost of doing business.

Investment-driven economies: Investment-driven economies would have the ability to produce standard products and services of high quality using efficient methods but at lower wages than advanced economies. Investment-driven economies need to focus on building efficiencies, enhancing local competition, market openness, incentives and rules for encouraging productivity.

Innovation-driven economies: Innovation driven economies would focus on innovative products and services at the global technology frontier. Innovation driven economies would need to focus on advanced skills, advanced infrastructure, incentives and rules encouraging innovation.

Stage 1

Stage 2

Stage 3

Page 49: The power of I (India) in BRICS

Competitiveness and World Economy

Source: The Competitive Advantage of Nations, Michael. E. Porter

SupportActivities

Marketing& Sales

(e.g. Sales Force, Promotion, Advertising,

Proposal Writing, Web site)

InboundLogistics

(e.g. Incoming Material

Storage, Data Collection, Service,

Customer Access)

Operations

(e.g. Assembly, Component Fabrication,

Branch Operations)

OutboundLogistics

(e.g. Order Processing,

Warehousing, Report

Preparation)

After-Sales Service

(e.g. Installation, Customer Support,

Complaint Resolution,

Repair)

Ma

rg

i

n

Primary Activities

Firm Infrastructure(e.g. Financing, Planning, Investor Relations)

Procurement(e.g. Components, Machinery, Advertising, Services)`

Technology Development(e.g. Product Design, Testing, Process Design, Material Research, Market Research)

Human Resource Management(e.g. Recruiting, Training, Compensation System)

Value

What buyers are willing to pay

• Separate local value chains • Integrated global value chain

• Geographic scope of competition is determined by the ability to leverage activities in the value chain across borders Industries differ greatly in the scope of competition

GlobalRegional

(e.g., Scandinavia, Western Europe)

Local / State National

Page 50: The power of I (India) in BRICS

Country Equivalents

Source: Economist Intelligence Unit, National Statistics

Page 51: The power of I (India) in BRICS

Country Equivalents

Source: Economist Intelligence Unit, National Statistics

Page 52: The power of I (India) in BRICS

Country Equivalents - Brazil

Source: Economist Intelligence Unit, National Statistics

Page 53: The power of I (India) in BRICS

Consumption in India : Fuelled by new models

Source: WDI, Marketing Whitebook 2011, Businessworld and Institute for Competitiveness

2010 2020

Rural 245 Billion Pounds

(45- 50%)

Urban 280 Billion Pounds

(50-55%)

Non Retail 590 Billion

Pounds (50-55%)

GDP 850 billion Pounds GDP 1920 billion Pounds

Private Consumption 490 Billion Pounds

Private Consumption 490 Billion Pounds

Urban 120 Billion Pounds

(45%)

Rural 150 Billion Pounds

(55%)

Retail 270 Billion Pounds

(55%)

Non Retail 225 Billion

Pounds (45%)

Retail 270 Billion Pounds

(55%)

Organized Retail 13 Billion Pounds (5%)

Organized Retail 125 Billion Pounds 24%

European Union

World

India

United States

0 20 40 60 80 100 120 140 160 180

77

32

4

169

ATM

Machin

es p

er

100,0

00 a

dult

s in 2

009

Page 54: The power of I (India) in BRICS

Household Income Growth to Accelerate Across India

India will see a reduction of poverty and growth of It’s Middle Class

The Shape of India’s Income Pyramid will Change dramatically as Income’s grow India’s Aggregate consumption will

Quadruple over the next 20 years

Source: Bird of Gold: The rise of India’s Consumer Market, McKinsey Global Institute

Shifts in the Consumer Market in India

Page 55: The power of I (India) in BRICS

Food will remain the largest Consumption Category while communications will grow the fastest

Services growth has been broad based

Shifts in the Consumer Market in India

Source: Bird of Gold: The rise of India’s Consumer Market, McKinsey Global Institute

Page 56: The power of I (India) in BRICS

Emerging Economies: Opportunity Areas

Source: World Bank Report on Sustainable futures

Description Impact Geography Type of investment

Irrigation Raises productivity in certain regions Regional, global Technology, manufacturing

Fertilizer Raises productivity in certain regions Regional, global Technology, manufacturing

Machinery Enables more efficient farming Local Engineering, manufacturing

Commercialization Raises productivity in certain regions Global Logistics, manufacturing

Infrastructure Major challenge to agricultural

expansion, especially in emerging economies

Global Governments, engineering

Land expansion Increases acreage for production Global Private lands, public lands

Biotech crops Crop protection, drought resistance, disease resistance, lower water and

fertilizer input

Choice by region

Biotech, agronomic

Page 57: The power of I (India) in BRICS

2000 2005 2010 2015 E0

5

10

15

20

25

30

16.6

18.8

22.3

26.1

0.5 0.82

4.5

US China

Chinese Productivity

Source: Why manufacturing will return to America, Economist Intelligence Unit, US. Bureau of Labor Statistics, Boston Consulting group , Institute for Competitiveness Analysis

2000 2005 2010 20150

5

10

15

20

25

30

35

40

45

13

20

29

40

Chin

ese p

roducti

vit

y r

ela

tive t

o U

S (

%)

Pro

-ducti

vit

y

17 %

9 %

4 %

3 %

Ratio of

average

Chinese to

average

U.S. wage

rates

Fully loaded factory-worker wages ($/hour)

Page 58: The power of I (India) in BRICS

GDP Projections

Source: Dreaming with the BRICS, Goldman Sachs.

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

2044

2046

2048

2050

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

China India France Germany ItalyUK US BRICs G6

Page 59: The power of I (India) in BRICS

Projections according to IMF

Source: IMF and Economist Intelligence Unit for 1970-2005:Economist Intelligence Unit forecasts for 2006-20

1971-1980

1981-1990

1991-2000

2001-2005

2006-2020

0

0.5

1

1.5

2

2.5

3

3.5

4

4.54.2

3.43.3

3.8

3.5

Incre

ase in a

countr

y’s

real G

DP

, at

consta

nt

2005

PP

P U

S$

China

United States

India

Brazil

Russia

Indonesia

South Korea

UK

Germany

France

Mexico

Canada

Turkey

Japan

0 5 10 15 20 25 30

26.7

15.9

12.2

2.4

2.3

2.3

2.1

1.9

1.9

1.5

1.4

1.3

1.3

1.1

Contribution to global growth (2006-20, %)

Page 60: The power of I (India) in BRICS

China, India, EU and USA : A comparative Analysis

Source: Institute for Competitiveness Analysis

  Brazil Russia India China

Basic Facts and figures

Population of about 19 Million

Population of about 14 Million

Population Population Approximately 1.3 billion

Approximately 1.2 billion

Uniqueness about the Economy

Moderate per capita income levels but inflation has been a consistent problem

Moderate per capita Income levels Growth dependent on commodities

Large service sector given the Level of Income

Large GDP as an aggregate but Low per capita Income levels

Challenges being faced

Economic slowdown, Growth momentum, inflation

Economic slowdown, corruption and overt dependence on commodity exports

Urban Infrastructure, governance challenges, Management of Inbound Capital flows

Carbon Intensity, Middle Income transition

Growth strategies

Targeting Inflation and other Emerging markets in long term

Opportunities in emerging markets+ Commodity exports to EU

Domestic demand+ external FDI FII flows

Domestic demand+ external FDI FII flows

Page 61: The power of I (India) in BRICS

Source: Report by ADB 2050

Asia

PRC

India

United States

0% 10% 20% 30% 40% 50% 60%

51%

22%

14%

14%

32%

11%

6%

21%

Share in World GDP at MERAsia PRC India United

StatesWorld

0

20000

40000

60000

80000

100000

120000

3860047800

41700

98600

36600

2030023700 17800

98600

25900

GD

P p

er

capit

a in $

at

PP

P

Asia PRC India United States World0

50

100

150

200

250

300

350

148

6340 40

292

61

21 1240

191

Asian CenturyMiddle_x000d_Income Trap

GD

P (

trillions $

MER

)Asian century scenario versus middle income trap scenario

Page 62: The power of I (India) in BRICS

Asian century or Middle Income Trap

3% 1%

52%

15%

10%

18%

Asian Century Scenario

Middle East and North Africa Rest of the WorldAsia North AmericaLatin America & Carribian Sub Saharan Africa

5% 2%

33%

24%

9%

27%

Middle Income Trap Scenario

Middle East and North Africa Rest of the WorldAsia North AmericaLatin America & Carribian Sub Saharan Africa

Source: Report by ADB 2050

Page 63: The power of I (India) in BRICS

0 10000 20000 30000 40000 50000 60000 70000 80000 900000

1

2

3

4

5

6

5.07734119768029

1.04659475345572

4.75218380952923

1.18786603786121

1.87257304577875

1.4623701627434

2.67583671918095

3.18543604965609

1.33823389572212

1.690102446562091.81768415650097

3.7356270722108

2.63847621322548

2.2420288519547

4.35996703199084

3.78933409499063

1.7007786074382

2.568269308331382.78174079406741

4.40034982912576

2.44535280686349

3.68618358774824

1.39129149461525

3.352836547115963.20343826415281

3.37871259016977

Switzerland1.94775897745552

2.25490662866012.32625070873789

Income per capita in constant 2000 USD

Gro

wth

rate

s (

2010-5

0),

CA

GR

Income Levels in 2050

Source: Report by ADB 2050, Institute for competitiveness Analysis

Page 64: The power of I (India) in BRICS

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.50

200

400

600

800

1000

1200

1400

1600

1800

24617

22270

8165

6429

37143576

2960

2810

27502287 2194

2149

20561954

1878

1502

14801477

1165

11601128856

798 786

732725

711657558529

Income per capita growth rates 2010-2050

Popula

tion in M

ilio

ns in

2050

Population Levels and Growth

Source: Report by ADB 2050, Institute for competitiveness Analysis

Page 65: The power of I (India) in BRICS

0 10 20 30 40 50 60

-8

-6

-4

-2

0

2

4

6

8

10

427195.53

442430.33

263498.39

825460.55

103363.13120851.88

228115.38

246308.16

Percentage Contribution in GDP (2000)

% C

hange in t

he C

ontr

ibuti

on t

o G

DP

(1994-2

000)

Structural shift in Indian Economy (1994-2000)

Institute for competitiveness Analysis

Page 66: The power of I (India) in BRICS

0 10 20 30 40 50 60 70

-10

-5

0

5

10

15

540122.406865079

912659.780674603

479035.193373016

74261.2682460317

1759773.37

303682.270968254

354692.987388889524134.309166667

383815.413944444

Percenatge Contribution in GDP (2010)

(%

change in c

ontr

ibuti

on 2

000-2

010)

Structural shift in Indian Economy (2000-2010)

Institute for competitiveness Analysis

Page 67: The power of I (India) in BRICS

Debt to GDP ratio

AndhraArunachal

AssamBihar

ChattisgarhDelhiGoa

GujaratHaryana

HimachalJammu & Kashmir

JharkhandKarnataka

KeralaMadhya Pradesh

MaharashtraManipur

MeghalyaMizoram

NagalandOrissaPunjab

RajasthanSikkim

Tamil NaduTripura

Uttar PradeshUttaranchal

West Bengal

0 20 40 60 80 100 120

30.1115.9

2839.7

15.213.8

35.532.1

1955.7

70.133.6

24.334.334.4

25.177.4

37.3109.1

59.430.6

35.241.1

80.625.5

42.243.5

41.142.8

Debt to GDP Ratio of Indian States

Prescribed limit ac-cording to WTO for

developing economies

Prescribed limit according to the growth and stability

Pact of EU

Source: State Profiling 2010, Institute for Competitiveness Analysis

Page 68: The power of I (India) in BRICS

Credit Ratings for Indian States

Source: Institute for Competitiveness Analysis

Credit Score Rating Investment Perspective

90 + A+ Very Attractive

81-90 A Attractive

71-80 B+ Sensible

61-70 B Modest

51-60 C+ Vigilant

41-50 C Risky

< 40 D Not to be invested

DelhiChhattisgarh

OrissaHaryanaGujarat

Madhya PradeshGoa

MaharashtraBihar

KarnatakaTamil Nadu

Uttar PradeshPunjab

UttaranchalKerala

JharkhandAndhra

HimachalMeghalaya

J&KAssam

ManipurSikkim

RajasthanTripura

West BengalMizoram

Arunachal

0 10 20 30 40 50 60 70 80 90

80.5672.37

65.3665.3664.87

63.4263.2663.0662.5762.366261.5761.2160.4460.4360.359.859.5359.45

58.3657.5957.21

56.0755.8555.4854.93

52.8751.08

S&P India Rating: BBB - from 2007-10Moody's India Rating: BAA3 from 2004-10

Credit Score Rating Index

Page 69: The power of I (India) in BRICS

Constraints being faced by India

Governance

Low literacy rates

University system

Inflation

Fiscal Policy

Financial Markets :In transition

Trade: Intraregional trade

Agricultural Productivity

Environmental Quality

Constraints being faced by Indian States

Page 70: The power of I (India) in BRICS

Some Plausible Solutions

Solutions to the constraints

Improve Governance ( Focus on PPPs, Greater Information sharing, and Decentralization as a model)

Raise Basic Educational Achievement (Implementation and policy making need to go hand in hand)

Increase Quality and Quantity of Universities (More needs to be done for the larger number of people in the age bracket 16-25 years)

Control Inflation: Why not monitor inflation periodically

Introduce a Credible Fiscal Policy (Having a medium term action plan will help to stimulate growth)

Liberalizing Financial Markets to a greater extent will benefit India greatly

Percentage of Intraregional trade to Interregional trade needs to grow to increase benefits from trade

Using modern tools and techniques (think tractors, drip irrigation) will greatly improve Agricultural Productivity

Improve Environmental Quality (Afforestation schemes and sustainable development hold the future for a green and a prosperous India)

Page 71: The power of I (India) in BRICS

India City Competitiveness

Page 72: The power of I (India) in BRICS

Institute for Competitiveness, India

INDIA IS THRIVING – NOW AND WILL IN FUTURE

% contribution in World’s GDP

Euro-pean Union18% United

States16%

China18%

Japan9%

India4%

Others35%

2030 Projection

Euro-pean Union26%

United States23%

China9%

Japan9%India

3%

Others31%

2010

0

2

4

6

8

10

12

4.03

5.22

3.77

8.37

8.28

9.32

9.27

9.82

4.93

9.108.81

7.80

5.30

GD

P g

row

th (

annual %

)

*value for 2012 and 2011 is for Q1

Source:- World Bank and Institute for Competitiveness Analysis

Page 73: The power of I (India) in BRICS

Institute for Competitiveness, India

MAIN CONTRIBUTORS IN INDIA’S GROWTH

Mah

aras

htra

Uttar

Pra

desh

Tam

il Nai

du

Andhra P

rades

h

Gujara

t

Wes

t Ben

gal

Karnat

aka

Rajas

than

Keral

a

Delhi

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

775,

020

394,

499

391,

372

381,

942

365,

295

317,

786

279,

932

204,

398

193,

383

191,

696

2010-1

1 n

om

inal G

DP

(in

cro

res o

f ru

pees)

Ahmedabad, Surat

Kolkata Ben-

galuruJaipur

Thiruvanantha-puram

Mumbai, Pune

Lucknow, Kanpur

Chennai

Hyderabad

Source:- RBI and Institute for Competitiveness Analysis

Page 74: The power of I (India) in BRICS

Institute for Competitiveness, India

TREND IN POPULATION SIZE AND GROWTH RATE (1901-2011)

1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011 2021 2031 20410

200

400

600

800

1000

1200

1400

1600

1800

-5

0

5

10

15

20

25

30

238.4252.09251.32278.98318.66

361.09439.23

548.16

683.329999999999

846.42

1028.74

1210.19

1338.64133333333

1494.63076190476

1650.62019047619

0.1

5.75

-0.03

11

14.22

13.31

21.51

24.8 24.66

23.85

21.34

17.64

Population (in millions) Decadal Growth rate (in %)

Pop

ula

tion

(in

million

s)

Decad

al G

row

th R

ate

(in

%)

Source:- Government of India Census and Institute for Competitiveness Analysis

Page 75: The power of I (India) in BRICS

Institute for Competitiveness, India

THE RURAL-URBAN DIVIDE

1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 20110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

10.8 10.3 11.1 12 13.8 17.3 17.9 19.9 23.3 25.7 28.5 31.2

Urban Rural

10.3

11.1

1210.8

13.8

17.3

17.9

19.9

23.3

25.7

28.5

31.2

Source:- Government of India Census and Institute for Competitiveness Analysis

Page 76: The power of I (India) in BRICS

Institute for Competitiveness, India

INCREASE IN NUMBER OF TOWNS, UAS AND VILLAGES (1971-2011)

1971 1981 1991 2001 2011

0

1000

2000

3000

4000

5000

6000

7000

8000

2921

40294689 5161

7935

1971 1981 1991 2001 2011

0

50

100

150

200

250

300

350

400

231276

381 382 384

1971 1981 1991 2001 2011

520000

530000

540000

550000

560000

570000

580000

590000

600000

610000

556561556014

579688

593732

608789

Nu

mb

er

of

Vil

lag

es

Towns (in Numbers) Urban Agglomerations (in Numbers)

Villages (in Numbers)

Source:- Government of India Census and Institute for Competitiveness Analysis

Page 77: The power of I (India) in BRICS

Institute for Competitiveness, India

URBANISATION: SIGN OF A DEVELOPING EOCONOMY

1951 1961 1971 1981 1991 2001 20110

10

20

30

40

50

60

70

80

90

18.33

28.3

34.45

43.57

52.21

64.874

Degree of UrbanizationLiteracy Rates (%)Registered Motor Vehicles (No.)

Source:- Government of India Census, World Bank, Road Transport Year Book& Figure and Institute for Competitiveness Analysis

Page 78: The power of I (India) in BRICS

Institute for Competitiveness, India

INDIAN STATES WITH HIGH GROWTH HAVE HIGH URBANIZATION RATE

0 100000 200000 300000 400000 500000 600000 700000 800000 900000 10000000.00

20.00

40.00

60.00

80.00

100.00

120.00

453367.60

5278.88

93867.16 171947.50

120513.18

201308.83

22997.23

413194.19

229352.99

44811.45

39217.9088162.87

326494.60

227049.88

200495.57

887905.30

7209.45

11407.39

4502.65

7663.08

166732.84

205511.09

241676.88

3096.19

409245.21

13561.81

516191.3048353.28

420113.36

GDP (Dec-11)

Urb

aniz

ati

on level

Page 79: The power of I (India) in BRICS

DISRIBUTION OF TOWNS BY SIZE CLASS

Cities Classificati

onPopulation 1951 1961 1971 1981 1991 2001 2011

Class I > 1,00,000 76 102 148 218 300 393

Class II50,000-1,00,000

91 129 173 270 345 401

Class III20,000-50,000

327 437 558 743 947 1151

Class IV10,000-20,000

608 719 827 1059 1167 1344

Class V 5,000-10,000 1124 711 623 758 740 888

Class VI < 5,000 567 172 147 253 197 191Class I UAs/Towns 468

Million plus UAs/Towns

53

Mega Cities 3

Greater Mumbai UA (12.05%)

Delhi UA (26.69%)

Kolkata UA(6.87%)

Institute for Competitiveness, India

Source:- Government of India Census and Institute for Competitiveness Analysis

Page 80: The power of I (India) in BRICS

Institute for Competitiveness, India

SNAPSHOT OF URBAN INDIA IN 2011

10 - 30 million 5 - 10 million 1 - 5 million 0.1 – 1 million

Cities Size Class By Population

Source:- India Urban Conference 2011: Evidence & Experience - IIHS

Page 81: The power of I (India) in BRICS

Competitiveness is the productivity with which a region utilizes its human, capital, and natural

resources

Productivity determines wages and the standard of living – Productivity growth determines

sustainable economic growth

It is not what industries a nation competes in that matters for prosperity, but how productively it

competes in those industries

Productivity in an economy depends on a combination of domestic and foreign firms

Innovation in products and processes is necessary to drive productivity growth

Only productive businesses can create wealth and jobs States compete to offer the most

productive environment for business

The public and private sectors play different but interrelated roles in creating a productive

economy

Leading to the prosperity of the region

Institute for Competitiveness, India

ENHANCING THE PROSPERITY OF URBAN INDIA via

COMPETITIVENESS

Page 82: The power of I (India) in BRICS

Institute for Competitiveness, India

INFLUENCES ON COMPETITIVENESS

WORLD ECONOMY 

BROAD ECONOMIC AREAS

GROUP OF NEIGHBOURING NATIONS

NATIONS

STATES, PROVINCES

METROPOLITAN AREAS, RURAL AREAS  

Multiple Geographic Levels

[Our Focus]

Source:- Institute for Strategy and Competitiveness

Page 83: The power of I (India) in BRICS

Institute for Competitiveness, India

DRIVER OF COMPETITIVENESS

Quality of overall business

environment

Concentration of resources and urban growth

Policy Coordination among Multiple

Levels of Geography/Govern

ment

Page 84: The power of I (India) in BRICS

Institute for Competitiveness, India

MEASURING COMPETITIVENESS: THE FRAMEWORK

Context for Firm Strategy and

Rivalry

Related and Supporting Industries

Demand Conditions

• Local rules and incentives that encourage investment and productivity .

- E.g. performance based salaries, incentives for capital investments, intellectual property protection• Vigorous local competition i.e., - Openness to foreign and local competition - Sophistication of company operations

• Local availability of suppliers and supporting industries

• Presence of clusters instead of isolated firms

Sophisticated and demanding local customers and needs e.g.,- Strict quality, safety, and environmental standards– Consumer protection laws – Government procurement ofadvanced technology – Early demand for products andServices.

Access to high quality business inputs i.e., - Natural endowments - Human resources - Capital availability - Physical infrastructure - Administrative infrastructure - Information infrastructure - Scientific and technological infrastructure

Factor Conditions

Page 85: The power of I (India) in BRICS

Institute for Competitiveness, India

HIERARCHY OF CITY COMPETITIVENESS INDEX

Overall Competitiveness

Factor Conditions

Demand Conditions

Context for Strategy &

Rivalry

Related & Supporting

Industry

1. Financial

2. Physical

3.

Communication

4.

Administrative

5. Human

Capacity

6. Innovation

1. Demographics

2. Income

Distribution

and Spending

Pattern

1. Competition

Intensity &

Diversity

of Firms

2. Business

Incentives

1. Supplier

Sophistication

2. Institutional

Support

Nearly 200 Indicators

Page 86: The power of I (India) in BRICS

SrinagarJammu

Shimla

Ludhiana

Amritsar

Chandigarh

Dehradun

GurgaonFaridabad

Allahabad

DelhiNoidaAgra

Meerut

Lucknow

KanpurJaipur

VaranasiPatna

Rajkot

Ahmedabad Vadoda

raSurat

RanchiKolkata

Asansol

JamshedpurRaipur

Dhanbad

Jabalpur

IndoreBhopal

BhubaneswarNashik

PuneMumbai

Guwahati

Nagpur

VishakhapatnamHyderabad

Vijayawada

KochiThiruvananthapuram

Kozhikode

BengaluruMysore

PuducherryMadura

i

ChennaiCoimbator

e

Institute for Competitiveness, India

CITIES THAT WE STUDY

Page 87: The power of I (India) in BRICS

Institute for Competitiveness, India

EVERY CITY HAS A DIFFERENT STORY

Crucial to understand each city as what is right for one city will not necessarily be right for another.

“Mega Cities” “Million plus Cities”

Indicators DELHI KOLKATA JAMSHEDPUR

KOCHI

Population 16753235 4486679 2291032 3279860

No. of Branches of Commercial Banks 2177 1121 179 634

Literacy Rate: Female 80.93 84.98 67.33 94.27

No. of GSM users (per lakh) 265 145 11 19

Molestation Incidence 550 226 6 67

Ownership of consumer durable- Home Theater 23 25 19 31

Share of total passenger traffic (airways) 21.8 15.1 0.7 1.1

Consumer Price Index for Industrial Workers 169 178 103* 158

Starting a business cost (% per capita income) 51.1 39.6 51.5 47.2

Page 88: The power of I (India) in BRICS

Institute for Competitiveness, India

LOOK AT THE ENTIRE PICTURE

For instance, Mumbai

Weak Areas Strong Areas

Number of slums

Number of accidental deaths

Total-corruption cases registered

Population density

0

5000

0

1000

00

61300

9093

1228

20925

Media Reach-Press

Literacy rate: Males

Work Force Participation Rate (per 1000)

Paying Taxes (Time)

010

020

030

040

050

0

98.8

94.28

434

271

Page 89: The power of I (India) in BRICS

Institute for Competitiveness, India

Rank City Overall Competitiveness Score Factor Conditions Demand Conditions Context for Firm

Strategy & RivalryRelated & Supporting

Industries

1 Delhi 69.732 1 1 1 10

2 Mumbai 67.856 2 2 2 4

3 Chennai 62.323 4 5 5 2

4 Hyderabad 61.782 3 12 7 1

5 Kolkata 61.464 6 11 6 3

6 Gurgaon 61.167 7 7 4 23

7 Bengaluru 61.100 5 3 8 18

8 Noida 60.406 9 38 3 5

9 Pune 59.854 8 4 9 8

10 Ahmedabad 58.036 15 8 15 7

11 Nagpur 56.942 17 15 12 14

12 Chandigarh 56.842 10 17 25 15

13 Jaipur 56.263 18 6 19 26

14 Coimbatore 55.955 29 45 10 6

15 Kochi 55.884 28 23 14 11

16 Surat 55.726 26 10 17 20

17 Nashik 55.651 33 9 21 9

18 Indore 55.637 11 35 22 37

19 Thiruvananthapuram 55.434 22 18 18 28

20 Kozhikode 55.212 35 19 11 32

21 Mysore 55.118 12 39 30 33

22 Bhubaneswar 54.642 13 42 27 43

23 Vadodara 54.627 32 25 16 25

24 Rajkot 54.607 36 14 20 27

25 Lucknow 54.584 23 16 39 22

A GLIMPSE: CITY COMPETITIVENESS RANK

First 25 Cities

Page 90: The power of I (India) in BRICS

Institute for Competitiveness, India

A GLIMPSE: CITY COMPETITIVENESS RANK

Rank City Overall Competitiveness Score Factor Conditions Demand Conditions Context for Firm Strategy

& RivalryRelated & Supporting

Industries

26 Madurai 54.570 38 36 13 24

27 Bhopal 54.322 16 40 28 40

28 Kanpur 54.318 19 49 38 12

29 Faridabad 54.097 20 32 36 34

30 Ludhiana 54.022 27 28 23 42

31 Vijayawada 53.964 30 20 32 30

32 Guwahati 53.961 14 46 31 46

33 Raipur 53.849 25 31 26 38

34 Vishakhapatnam 53.741 34 22 33 31

35 Patna 53.580 37 21 42 21

36 Jabalpur 53.249 24 50 34 35

37 Agra 53.157 39 29 46 16

38 Varanasi 53.039 45 41 37 13

39 Meerut 52.975 43 34 40 17

40 Puducherry 52.905 42 27 29 39

41 Asansol 52.813 47 13 35 36

42 Dehradun 52.725 31 30 47 41

43 Ranchi 52.575 40 33 41 29

44 Allahabad 52.573 46 26 48 19

45 Shimla 52.295 21 43 43 49

46 Amritsar 52.181 41 24 24 47

47 Jammu 50.621 44 47 49 48

48 Jamshedpur 50.475 49 44 44 44

49 Dhanbad 49.829 50 48 45 45

50 Srinagar 49.732 48 37 50 50

Next set of 25 Cities

Page 91: The power of I (India) in BRICS

Institute for Competitiveness, India

TOTAL POPULATION VERSUS COMPETITIVENESS

48.00 53.00 58.00 63.00 68.000

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

4380793

7208200

5959798

2490891

7723663

9588910

2368145

22463411054686

4681087

3472578

1698560

16753235

2682662

17989541514085

1260419

40102383272335

2460714

6663971

1526406

2291032

4572951

3279860

4486679

3089543

4588455

34878823041038

3447405

12478447

2994744

4653171

6109052

1674714

5772804

1244464

9426959

40621603799770

2912022

813384

1269751

6079231

3307284

41575683682194

45290094288113

f(x) = 491626.06411456 x − 23111674.848131R² = 0.456085574182312

Microeconomic Competitiveness Score

To

tal

Po

pu

lait

on

Page 92: The power of I (India) in BRICS

Institute for Competitiveness, India

TEACHERS IN GOVERNMENT SCHOOL VERSUS

COMPETITIVENESS

48.00 53.00 58.00 63.00 68.000

1000

2000

3000

4000

5000

6000

7000

8000

9000

6856

1527

8388

2994

1032 988

2541

2379

3257

962

3455

1960

5838

2881

1299 1433

6539

2706

3719

4091

5368

1931

2821

5987

1108

6608

1201

5347

3510

2083

4251

1709

2258

3137

7170

2042

5859

954

7254

154

32073544

482

1208

2047

3774

54565092

8128

f(x) = − 26.0610980946404 x + 5060.10971761456R² = 0.0018373379481994

Microeconomic Competitiveness Score

Teach

ers

in

Go

vern

men

t S

cho

ol

Page 93: The power of I (India) in BRICS

Institute for Competitiveness, India

FEMALE LITERACY RATE VERSUS COMPETITIVENESS

48.00 53.00 58.00 63.00 68.0055

60

65

70

75

80

85

90

95

100

59.16

80.29

62.67

72.8

70.47

84.8

76.6

82.0681.4

87.16

79.1679.61

80.93

64.7

75.2

77.6

85.82

78.4274.975.3017023968697

64.63

77.41

67.33

76.89

94.27

84.98

93.16

73.88

78.276.74

65.69

86.93

66.59

85.07

73.43 72.78

63.72

81.2

81.13

66.21

75.26

68.2

77.8

63.47

81.02

90.89

74.4

68.269.92

60

f(x) = 1.00161399019652 x + 20.1110934625409R² = 0.232115262095215

Microeconomic Competitiveness Score

Fem

ale

Lit

era

cy R

ate

Page 94: The power of I (India) in BRICS

Institute for Competitiveness, India

48.00 53.00 58.00 63.00 68.000.4

0.45

0.5

0.55

0.6

0.65

0.7

0.75

0.8

0.523

0.657

0.523

0.73

0.503

0.656

0.4860.496

0.7350.7440.744

0.587

0.72

0.431

0.68 0.68

0.445

0.662

0.4860.486

0.544

0.512

0.431

0.523

0.772

0.503

0.772

0.523

0.730.744

0.523

0.6630.6560.6630.663

0.523

0.421

0.663

0.663

0.498

0.657

0.431

0.654

0.512

0.657

0.772

0.657

0.523

0.6620.662

f(x) = 0.010483927453262 x + 0.020446456692389R² = 0.15918544815916

Microeconomic Competitiveness Score

Ed

uca

tio

n D

evelo

pm

en

t In

dex

EDUCATION DEVELOPMENT INDEX VERSUS COMPETITIVENESS

Page 95: The power of I (India) in BRICS

Institute for Competitiveness, India

CHEATING INCIDENCE VERSUS COMPETITIVENESS

48.00 53.00 58.00 63.00 68.0020

220

420

620

820

1020

1220

1420

266

212

141

275

47

170

1108

163

524

148204

21

154

254240 151

80105

90

461

297

1271

277

750

385

124

234264

187

53

174

77

663

188

26

168

31

63

126

689

115

209

298294

f(x) = 105.874884875056 x − 5342.86249159677R² = 0.283739149709869

Microeconomic Competitiveness Score

Ch

eati

ng

In

cid

en

ce

Page 96: The power of I (India) in BRICS

Institute for Competitiveness, India

DECADAL GROWTH RATE VERSUS COMPETITIVENESS

48.00 53.00 58.00 63.00 68.000

10

20

30

40

50

60

20.96 22.3120.71

15.48

12.01

46.68

28.5

19.65 17.1

7.77

18.46

32.48

20.96

11.91

31.75

18.95

4.71

32.7

14.4

26.91

12.48

15.53

9.72

5.67.31

25.79

15

17.9515.92

8.01

13.3914.39

22.33

51.52

22.3427.72

30.34

34.65

19.87

23.9

12.58

23.56

42.19

2.25

14.16

17.32

8.15

11.89

f(x) = 0.392096913744253 x − 1.34194088310921R² = 0.0145767385471781

Microeconomic Competitiveness Score

% d

eca

dal

gro

wth

rate

(2

00

1-1

1)

Page 97: The power of I (India) in BRICS

Institute for Competitiveness, India

OWNERSHIP OF CONSUMER DURABLES - MOBILE VERSUS

COMPETITIVENESS

48.00 53.00 58.00 63.00 68.0098

98.5

99

99.5

100

100.5

99

99.4

99.7

99.6

100 100

99.7

98.6

100

99.7

98.6

100100

99.3

99.8

100100

99.6

99.9100 100

100

99.3

99.7

99.3

100

99.3

100

98.6

99.7

99

99.899.7

99.7

100

98.4

98.6

100

99.5

98.6

99.5

98.6

100100

99.5

99.399.399.4

99.799.7f(x) = 0.0166353995871989 x + 98.6175998908751R² = 0.0197344931930757

Microeconomic Competitiveness Score

Ow

ners

hip

of

Co

nsu

mer

Du

rab

les-

Mo

bil

e

Page 98: The power of I (India) in BRICS

Institute for Competitiveness, India

THE UNTAPPED ASSET OF COUNTRY: TIER 2-3 CITIES

Consists of pool of opportunities

Avoids the pitfalls of the megacities

More people are moving towards them as they are facing scarcity of land in Mega

cities

Each city has its own competitive edge

Still preferred by many people

For instance,

Tier I cities Tier II and III cities0%

10%

20%

30%

40%

50%

35%

50%

Growth of organized retail

Page 99: The power of I (India) in BRICS

Institute for Competitiveness, India

URBANIZATION LEVEL OF TIER 2 CITIES

Agra

Asansol

Bhopal

Coimbatore

Dhanbad

Indore

Jaipur

Jamshedpur

Kanpur

Kochi

Kozhikode

Lucknow

Ludhiana

Maduari

Meerut

Nagpur

Nashik

Patna

Rajkot

Surat

Thiruvananthapuram

Vadodara

Varanasi

Vijaywada

Vishakapatnam

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

45.87

66.93

80.84

75.83

58.13

74.09

52.51

55.55

65.93

68.07

67.15

66.20

59.14

60.64

51.13

68.30

42.53

43.48

43.48

43.48

53.80

49.54

43.43

41.01

47.51

Source:- Census 2011 and Institute for Competitiveness Analysis

Page 100: The power of I (India) in BRICS

Institute for Competitiveness, India

UNTANGLING THE LINKAGES BETWEEN CITY, COMPETITIVENESS

& ECONOMIC GROWTH More advanced economies are more urbanized economies

Cities tend to be the only place where companies and individuals find opportunities for successful

economic activity

Rise of cities is seen as an inevitable part of development but also as a policy challenge

Avoid a political schism between metropolitan and rural regions

Cities have a different role to play in advanced economies

Cities are the places where different types of proximity benefits can reinforce each other

From the competitiveness perspective, the policy imperative is crucial for cities as well as rural regions

and also the same

Cities and the rural regions around them should cooperate closely

The case with Mumbai

Tried to manage the growth by creating artificial boundaries

The approach failed and made living conditions worse

Different policy approach is required that focuses on better public services and land use inside the city

Competitiveness-oriented policy approach can be used that changes the economic fundamentals of where

people live and work

Page 101: The power of I (India) in BRICS

Institute for Competitiveness, India

SECTORWISE TOTAL INVESTMENTS IN PPP PROJECTS IN

INDIA : 2011

Airports

Education

Energy

Health Care

Ports

Railways

Roads

Urban Development

0 50000 100000 150000 200000 250000

19131

1922.47

85141.18

1887.2

82402.67

3913.03

244289.176

99324.61

Project Cost (Rs. Crore)

Source:- PPP Database and Institute for Competitiveness Analysis

Page 102: The power of I (India) in BRICS

Institute for Competitiveness, India

URBAN INFRASTRUCTURE: TRANSPORTATION IN INDIAN

CITIES Chaotic situation in most cities except the mega cities where the number of commuters is so high that the transportation

seems weak Challenges:

- Vast gaps between demand and supply

- Poor infrastructure such as insufficient routes and roads

- Increase in private vehicles which leads to congestion and also slows down the speed of other vehicles such as buses

etc. to 10-12 km

- Leads to environmental pollution

- Absence of comprehensive parking facilities in the city

Chennai Bengaluru Mumbai Ahmedabad Kolkata Delhi0

1000

2000

3000

4000

5000

6000

7000

0

50

100

150

200

250

300

3414

6110

4652

942 956

5771

278.59

205.38

154.02152.71

99.9

138.66

Total Fleet Held Vehicle Productivity (km/Bus/Day)

Operations of Road Transportation in Major Cities: 2010-11

Source:- Road Transport and highways Ministry, 2010-11 and Institute for Competitiveness Analysis

Page 103: The power of I (India) in BRICS

Institute for Competitiveness, India

OTHER MODES OF TRANSPORTATION

• The other major mode of transportation in cities is Railways

• Though it is dominant for the inter city transportation only in cities

• Also has a different face in every region such as in

- Delhi – Metro Rapid Transit System (MRTS) is main lifeline but Local Rails are also present

- Kolkata – The Underground Metro, The Local Rails and the tram, all are widely used by

commuters

- Mumbai – Local Trains however, metro will be operational after short period, as reported by

authorities

- Bengaluru – The introduction of Metro in the city has change the travelling experience of the

commuters

United Kingdom

United States

Japan

Germany

China

India

South Africa

0

1000

00

2000

00

3000

00

4000

00

5000

00

6000

00

7000

00

8000

00

9000

00

1000

000

55019

9518

244235

78582

791158

903465

18865

Passengers carried by railways (million passenger-km)

Source:- World Bank and Institute for Competitiveness Analysis

Page 104: The power of I (India) in BRICS

Institute for Competitiveness, India

URBAN INFRASTRUCTURE: WATER

Ahmed

abad

Amrit

sar

Benga

luru

Bhopa

l

Chand

igar

h

Chenn

ai

Coim

bato

re

Indo

re

Jam

shed

pur

Kolka

ta

Mum

bai

Nagpu

r

Nashik

Rajko

t

Sura

t

Varan

asi

Vijayw

ada

Visak

hapa

tnam

Avera

ge

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

0

2

4

6

8

10

12

14

0.1680.213 0.1850.182

0.332

0.1310.2860.108

0.808

0.246

0.2460.267 0.248

0.146

0.188

0.2170.22

0.3050.244

2

11

4.5

1.5

12

5

3

0.75

6

8.3

4

5

3.5

0.3

2.5

7

3

1

4.3

Production/Population (m3/d/c) Water availability (hours)

Pro

ducti

on/P

opula

tion (

m3/d

/c)

Wate

r A

vailabilit

y (

hours

)

AVERAGE= 0.244

Source:- India Infrastructure Report 2011 and Institute for Competitiveness Analysis

Page 105: The power of I (India) in BRICS

Institute for Competitiveness, India

URBAN CLUSTERS

“Geographical concentrations of industries that gain performance advantage through co-location”

Brings together companies, suppliers, service providers and associated institutions in a particular field

The close proximity – by geography and activities - provides economic benefits

Facilitate commercialization and new business formation through spinoffs and startups

Cluster initiatives can act as policy catalysts for competitiveness

Growth of one competitive firm generate demand for other related industries

Forces firms to improve and innovate

Facilitate technology and knowledge transfer that strengthens the cluster and promotes future growth

Few examples: City Industrial Cluster

Raipur Iron & Steel Cluster

Ahmedabad Chemical Cluster

Surat Gem & Jewelry Cluster

Nashik Engineering cluster

Guwahati Bamboo Cluster

Vijayawada, Chennai

Auto Components Cluster

Bangalore Machine Tools Cluster

Hyderabad Pharma Cluster

Kanpur Leather Cluster

Ludhiana Textile Cluster

Page 106: The power of I (India) in BRICS

Institute for Competitiveness, India

SUCCESS STORY OF CLUSTER IN BENGALURU

The ICT Cluster in Bengaluru has attracted people and is also known as the Silicon Valley of India

Currently Boasts of over 1500 IT firms out of about 3500 IT firms in India

Indian companies such as Infosys, Wipro, Iflex have strong presence

Wholly-owned subsidiaries of MNCs such as Motorola, Texas Instruments and Hewlett Packard have their base

in the city

Around 1/3rd of all of India’s software exports are from the city

United Nations Human Development Report has ranked the city as the 4th in the category of global hub of

technological innovation

Factors that contribute

Educational Institutions and training centers (IISC, IIIT, IIM etc.)

Research Institutions (ISRO)

Government policies (central and local)

Y2K Problem (resulted in giving an important impetus to IT development)

Quality issues

Jobs creation“Bangalore is a model of how an agglomeration can bring prosperity to a poor country”

- Edward Glaeser, Harvard University

Page 107: The power of I (India) in BRICS

Institute for Competitiveness, India

ESTABLISHED IT/ITES HUBS IN INDIA

NCR Delhi

Kolkata

Mumbai

Hyderabad

Chennai

Bangalore

Pune

Total STPI Registered Units by 2006-07: 1400IT/ITeS Majors: IBM, Genpact Oracle, American Express, Convergys, HP, General Motors

Total STPI Registered Units by 2006-07: 166IT/ITeS Majors: IBM, Cognizant, TCS, Infosys, Wipro

Total STPI Registered Units by 2006-07: 1060IT/ITeS Majors: Hp, Amazon, Verizon, Convergys, EXL, Infosys, TCS

Total STPI Registered Units by 2006-07: 900IT/ITeS Majors: Infosys, Wipro, Accenture, Cognizant

Total STPI Registered Units by 2006-07: 630IT/ITeS Majors: TCS, Infosys, Wipro, Siemens, Accenture

Total STPI Registered Units by 2006-07: 635IT/ITeS Majors: Cognizant, Convergys, EXL, KPIT, Msource

Total STPI Registered Units by 2006-07: 1700IT/ITeS Majors: Wipro, TCS, HP, Siemens, HSBC, Compaq

Cumulative software

exports from Bangalore are estimated to be

US$ 11 billion, positioning it as the

leading IT hub of India

Source:- Paper on “Knowledge-based Custer Development in India Opportunities and Challenges”, MIT

Page 108: The power of I (India) in BRICS

Institute for Competitiveness, India

AUTOMOTIVE CLUSTERS IN INDIA

Himachal Pradesh

DELHI

Haryana

West Bengal

Kolkata

Gujarat

Maharashtra

Mumbai

KarnatakaBangalore

Andhra Pradesh

Tamil Naidu

Chennai

Maruti Suzuki, Honda,

Hero, Yamaha, LML

NORTH

GM, TATA, Fiat, Bajaj,

Mahindra, Mercedes Benz,

Volkswagen, Eicher, Force,

Skoda, Audi, Mahindra

Renault, Swaraj Mazda

TATA, HM

EAST

Hyundai, Ford, Mitsubishi

Motors, TVS, Toyota, Volvo,

Royal Enfield, BMW, Nissan,

Renault Nissan

Source:- Harvard Business School – Spring 2012

Page 109: The power of I (India) in BRICS

Institute for Competitiveness, India

ENHANCING CITY COMPETITIVENESS

Focus on

1. Public-Private

Partnerships

- Increases the ease of business, fetches innovative ideas, provide potential

for financing

- One of the successful model is the Delhi Noida Bridge

2. Dealing with

Urbanization

3. Urban Poverty

4. Transparency and Civic

Engagement

5. Other Common

Areas

- Understand the city challenges & search their solutions, improve internal &

external environment

- Some Tier-2 & 3 cities like Guwahati, Bhopal, Faridabad, Coimbatore are

urbanizing at a fast pace- Leads to vulnerable conditions, create issues with respect to sanitation, water,

health , education etc.

- Government programmes: Swarna Jayanti Shahari Raozgar Yojana (SJSRY), JNNURM,

Rajiv Awas Yojana- Engage major stakeholders in most of the development activities

- A tool for the betterment of the democracy and thus the city

- Includes basic amenities, infrastructure, facilities etc. required for a decent

standard of living

Page 110: The power of I (India) in BRICS

Institute for Competitiveness, India

GOVERNANCE

Movement of power

Center

State

Urban Local Government

Therefore,

Clear boundaries between Metropolitan governance body and municipal corporation

Need to make institutional arrangements

Empower Local bodies

Create well defined model for governance structure

Focus should be on managing the change wherein expectations of all stakeholders is taken into

consideration

provide quality services in adequate

quantities to the residents A ‘GOOD’ City = sound political and governance system

are responsive towards the requirements of the businesses

City Mayor

City Management

Service Delivery Agencies

Page 111: The power of I (India) in BRICS

Institute for Competitiveness, India

Focus on

1. Built Character

- Governed by planning norms, building controls and urban policy

- Immediate spatial and visual impact of city’s “Hardware” positively influence the

psyche of people

2. Urban identity

3. Urban behavior

4. Interstitial

urbanism

- Urban contexts of the city strike a deep chord with its residents

- Characteristics such as historicity, accessibility, multi-vocal qualities and

inclusive nature are valued - It replicates itself in recognizable pattern at multiple scales

- Helps to openly engage, individually and collectively

- Adds immeasurable value to the city

- Vitalizes a city, encourage a sense of belonging amongst residents and their

engagement with the city

CITY BRANDING FROM WITHIN

Delhi can be branded if following possibilities are looked upon: Innovatively utilizing the old structures even when urban infrastructure are being constructed Enhancing the inclusiveness of the city via urban villages & historic settlements so as to make them

vibrant contributors to Delhi’s urban experience Improving the basic amenities within the city etc.

Page 112: The power of I (India) in BRICS

Institute for Competitiveness, India

INDIA CITIES ON GLOBAL BENCHMARK

Tokyo (68)Shanghai (55.2)

Los Angeles (61.5)

New York (71.4)

London (70.4)

Hong Kong (69.3)

Paris(69.3)Zurich (66.8)Chicago

(65.9)

Singapore (70)

Delhi (46.7)

Kolkata (37.8)

Chennai (38.1)

Bangalore (44.6)

Mumbai (46.6)

Ahmedabad (41.9)

Source:- Economist Intelligence Unit and Institute for Competitiveness Analysis

Hyderabad (39.4)

Page 113: The power of I (India) in BRICS

Institute for Competitiveness, India

KEYS FOR SUCCESSFUL CITIES

Vision

Entrepreneurship

Specialization

Social cohesion

Governance

ambition for future + desire + shared value system

shaping people and not merely “shaping knowledge”

understand every city’s unique characteristics

Creative city planning which, addresses social issues

Include principles such as, participation, coherency,

competitiveness, subsidiarity, sustainability

Page 114: The power of I (India) in BRICS

Institute for Competitiveness, India

THE CITIES OF FUTURE

Present cities seems stressed on multiple accounts that is, overpopulation, sketchy resources, exorbitantly

high cost of living index, mal governance etc.

So the cities of future would primarily be an itsy-bitsy variation of current cities

Current cities have built in so many contra forces that they are now leviathan white elephants. However it

is being suggested that city of future would be fragmentisation of population clusters

Every employee shall serve many firms

Geography and power would no longer correlate

21st century man is absolutely asocial

Technology will keep on pouring and will make one city advanced and other obsolete

Therefore, cities needs to see their future and then address the stresses bothering them and should not

depend on the vacuous pronouncements of politicians

Page 115: The power of I (India) in BRICS

Indian Market is Highly Regional

Uneven Pattern of

Wealth Distribution

Seasonality

Cultures &

Languages

Page 116: The power of I (India) in BRICS

Strategizing for Success in India

Is it an easy market to crack

Where should we focus

Who are the successful players

Page 117: The power of I (India) in BRICS
Page 118: The power of I (India) in BRICS
Page 119: The power of I (India) in BRICS

Local Mom and Pop Store

Page 120: The power of I (India) in BRICS
Page 121: The power of I (India) in BRICS
Page 122: The power of I (India) in BRICS
Page 123: The power of I (India) in BRICS
Page 124: The power of I (India) in BRICS
Page 125: The power of I (India) in BRICS
Page 126: The power of I (India) in BRICS
Page 127: The power of I (India) in BRICS

The End


Recommended