Cities of New India

from globalization perspective

Globalization in India has not been uniform!

% SHARE IN TOTAL FDI
Delhi

58 % FDI in 6 states

Mumbai

36% in 7 cities
The pattern of FDI same as domestic investment
other

Banglore Chennai Hyderabad Kolkata Ahmedabad

City Level Policy Changes post 1991

Engagement of the private sector in city infrastructure development and management. Accessing capital markets. Z stablishment of funds for initiating structural changes at city levels

Case Study of the cities

Ahmedabad
Manchester of India in 1940s post liberalization other sectorsplastic, petroleum and coal production became predominant AMC first municipal corporation to issue bonds PPP with Arvind Mills and others

Bangalore
Silicon Valley of India\ ample availability of trained human resources resulted in thriving of R&D firms only 41% of population is indigenous

Case Study Continued

Gurgaon
Satellite city of Delhi availability of cheap unskilled labor from UP, Bihar and skilled from Delhi financial services and BPO dominant sectors

Pune
MIDC initiative of setting a huge industrial complex in its vicinity provided the local advantage Detroit of the East Education hub of the region

Major trends observed

I. Ahmedabad has not only retained but reinforced the manufacturing base by upgrading the old manufacturing industries.

II. Gurgaon has emerged due an extraordinary expansion in building up the new generation information base and white goods industries. III. the Mumbai-Pune-Nashik triangle provides a dispersed industrial region that sustains the service economy of Mumbai. The services involved are classified as accountancy, law, advertising, finance, banking, research and development.

Real State Sector

mushrooming of high quality residential and office space along the city borders
land prices became sky-high Possible explanation ? o Scarcity value following up the opening of Indian Economy o land and housing market operate in the country in a constrained environment

Conclusion
FDI in INDIA AS COMPARED TO ITS NEIGHBOURS
Thailand

Phillippins
South Korea China India 0 5 10 15 20 25 30 35

Scale of globalization in India very small compared to other developing nations in the region Limited set of sectors has been affected while others left 40 almost untouched

Amount of FDI (in billion US $)

Given the small scale of globalization, the expected impact on restructuring of cities has, at best, been marginal.