City Competitiveness Report 2011 by Institute for Competitiveness

India City Competitiveness Report 2011

India City Competitiveness Report 2011 Authors Dr Amit Kapoor Honorary Chairman Institute for Competitiveness, India Professor of Strategy & Industrial Economics Management Development Institute,Gurgaon, India E-Mail: amit.kapoor@competitiveness.in Ankita Garg Senior Researcher Institute for Competitiveness, India E-Mail: ankita.garg@competitiveness.in

Editorial Rashmi Panwar Usual Disclaimers Apply

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India City Competitiveness Report 2011

For further information, visit www.competitiveness.in or write to info@competitiveness.in

India City Competitiveness Report 2011

India City Competitiveness Report 2011 India has had a glorious past and both its people and the government desire that to have a shining future. India City Competitiveness Report 2011, by Institute for Competitiveness aims to bring out a true image of selected 50 Indian cities. It is vital for the Indian cities to outshine and also to get across the positives and negatives related with these cities so as to compare and communicate their attractiveness level on the international platform. It is required to improve the competitiveness of these cities and guide them towards a developmental path by laying down an appropriate strategy. India City Competitiveness Report 2011 provides a clear understanding of the economic, social, physical, environmental and other business related factors pertaining to these 50 cities. Since the country is doing well and needs to improve on factors such as globalization and urbanization, it becomes important to assess the cities of the country that are considered to be the growth centers of developing India. The report will provide insights to the Government to assess their current strategies and incorporate the required changes, it would also address the requirements of the businessâ&#x20AC;&#x2122; that are looking at making huge investments in the various cities.

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India City Competitiveness Report 2011

Table of Contents Executive Summary..................................................................................................................................................................................................1 1. What is Competitiveness?...................................................................................................................................................................................2 1.1 Introduction.................................................................................................................................................................................................2 1.2 Factors of Competitiveness.........................................................................................................................................................................2 1.3 Why is it required?.......................................................................................................................................................................................4 1.4 Keynote of the report...................................................................................................................................................................................4 1.5 Competitiveness of Regions and Cities.....................................................................................................................................................5 1.6 Urban India & its Urbanization Level.......................................................................................................................................................6 1.7 Understanding the Urban Classification..................................................................................................................................................7 2. Methodology......................................................................................................................................................................................................10 2.1 Units of Analysis........................................................................................................................................................................................10 2.2 Data Sources and their Quality...................................................................................................................................................................11 2.3 City Competitiveness Index......................................................................................................................................................................12 2.4 Data Analysis..............................................................................................................................................................................................13 2.5 Steps Undertaken.......................................................................................................................................................................................13 3. Rankings.............................................................................................................................................................................................................15 4. Future of Indian cities: Discovering Answers in Questions.........................................................................................................................34 4.1 The Most Competitive Indian Cities.......................................................................................................................................................34 4.2 Analyzing the City Index..........................................................................................................................................................................35 4.3 Tapping the Next Frontier: Potential for Tier-2 & Tier-3 Cities..........................................................................................................36 4.4 Measuring the Competitiveness Level.....................................................................................................................................................37 4.5 A Closer Look at the Top 2..........................................................................................................................................................................37 5. Crucial Indicators..............................................................................................................................................................................................40 6. Enhancing City Competitiveness....................................................................................................................................................................46 6.1 The Role of Governance............................................................................................................................................................................46 6.2 Key Areas of Focus....................................................................................................................................................................................47 6.3 Success Point for the City Competitiveness...........................................................................................................................................48 6.4 Urban Agglomerations, Cities and Regions...........................................................................................................................................49 6.5 Future of Indian Cities..............................................................................................................................................................................49

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India City Competitiveness Report 2011

Executive Summary India City Competitiveness Report 2011 with its Competitiveness Index gauges 50 Indian cities on various parameters. The index is based on the Microeconomic Competitiveness - Diamond Model, by the renowned Harvard Business School Professor, Michael E. Porter. The model stands on four pillars that takes into account every crucial aspect of the Competitiveness. The outcome of the index is an eye opener for the Government, Corporates and the people who are associated with these cities. The index has undertaken a holistic approach to assess these cities and depicts the level of productivity and prosperity of each city. New Delhi has been ranked as the most ompetitive city in the country and scores well on three pillars. It has repeated its performance for the second time on the Competitiveness Index and has exhibited an overall improvement with only few weak areas. Mumbai follows the National Capital this time and attains the 2nd position by scoring high on demand and factor conditions. Bengaluru is placed at 3rd position, Pune at 4th, Chennai at 5th, Gurgaon at 6th, Kolkata at 7th, Hyderabad, Ahmedabad and Jaipur at 8th, 9th and 10th respectively. Interestingly, Gurgaon lands at the 6th position despite of its poor infrastructure and other related issues. Some South Indian cities such as Kochi, Thiruvananthapuram, and Kozhikode etc. showcased a rise in their competitive level and achieved positions in the 1121 ranks of the most competitive Indian cities. Jaipur is the only city that maintained its position and stayed stable on the competitive index. Noida is the only city apart from the four metros that has gained number one position in the administrative sub index. It has been identified that the different set of cities possess different opportunities and even the tier-2 and tier-3 cities also hold immense potential. However, it is required to tap their potential so as to explore the varied aspects of these Indian cities and help them gain their distinctive advantages. Cities such as Mysore, Madurai, Lucknow, Goa, Vijayawada, Agra, Patna etc. are seeking new opportunities and they should be nurtured further to achieve the required result. Indian cities need to bridge the gap between them and the globally competitive cities. They should grow in a sustainable manner, complimenting their own inherent strengths and developing a clear vision of their future. Cities need to move forward on the path of competitiveness by planning and implementing a suitable strategy that is based on their respective strengths and weaknessâ&#x20AC;&#x2122;es We must work on developing these urban centers into great cities which could unite together to form a great county.

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1. What is Competitiveness? 1.1 Introduction 21st century has been touted as the Asian age where the developing Asian countries will compete against the other powerful and developed countries of the world. However, there seems to be no doubt in this declaration as it is clearly evident from the pace with which Indian economy is rising. India with its growing population offers a huge business opportunity to the rest of the world and is also creating a place for itself in the global arena at the same time. At the “Institute for Competitiveness”, a competitiveness index has been constructed based on Michael E. Porter’s work. It provides a clear understanding of the prosperity and its associated factors. Broadly, Competitiveness is defined as ‘the set of institutions, policies and factors that determine the level of productivity in a country’. It includes the sophistication of Company Operations and Strategy and Quality of the Microeconomic Business Environment. We have analyzed the cities on this framework so as to gauge the Indian cities and identify the attractiveness level of each city. It is a tool that determines the productivity of the region from the income distribution pattern, currency rate, operations of firms, infrastructure of the region, human capacity etc. Thus even small factors highly influence the region and thus the country’s overall competitiveness level. As India is growing to become one of the world’s most dynamic economic regions, Indian cities are competing with each other and cities in the other Asian region to bring in new business’ and attract talent. In the book named “Triumph of the City”, it has been well said by Edward Glaeser, a distinguished Harvard economist that “Cities are man’s great invention. They make us richer, smarter, greener, healthier and happier.” The cities are a reflection of the country’s prosperity and a medium to present the country infront of the outer world. Therefore, it is vital to assess their competitiveness level and identify the gap between their sustainable economic growth and long-term prosperity.

1.2 Factors of Competitiveness Competitiveness is not just about the promotion of more growth but rather it is a process of economic evolution that will generate specific results that are considered especially desirable for the complete development. For example, a competitive urban economy will depend more on the quality of jobs rather than on mere numbers when taking into consideration the employment factor. A clear understanding of the Microeconomic Competitiveness: Diamond model by Michael E. Porter will explain the fundamental concept and thus the competitiveness of the cities. The model remains the centerpiece to bring out the Competitiveness Index. It is based upon four crucial pillars that are the determinants in driving productivity and competitiveness. These four pillars are interlinked factors and are instrumental in determining competitivenes for a particular region or nation. The four pillars of competitiveness model can be broadly described as

Factor Conditions: These include factors of production that embraces not just the conventional aspects like raw materials, labor, land etc. but also specialized factors, such as, capital and infrastructure. For instance, the factor driven economies majorly focus on low-cost, basic factor conditions, such as low-skilled labor, geographic location etc.

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Context for Firm Strategy and Rivalry

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

• 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

Related and Supporting Industries Local availability of suppliers and supporting industries Presence of clusters instead of isolated firms

Demand Conditions Sophisticated and demanding local customers and needs e.g., - Strict quality, safety, and environmental standards – Consumer protection laws – Government procurement of advanced technology – Early demand for products and Services.

Demand Conditions: These deals with the preferences and choices of consumers in an economy and their increasing or decreasing demand for products and services. As a result the firms are made to perform and innovate to meet their expectations.

Context for Firm Strategy and Rivalry: The firms are driven to work by increasing the productivity and innovation in and around the region due to the existent and forthcoming competition. So in the market place there are many local and foreign companies competing to gain profits and remain sustainable in the long run. The local rules for taxation and incentives can act beneficial for the businesses to grow and prosper.

Supporting and Related Industries: Michael E. Porter proposes that the presence of clusters is a beneficial entity to interchange the knowledge and increase the firm productivity then the isolated firms. The clusters offer better proximity of upstream and downstream industries. These four pillars are not mutually exclusive and provide open-endedness by including a weighted average of many different components, each assessing a different facet of competitiveness. All the four pillars are closely knit with one another so there is a high level of dependency among all. For instance, the demand (such as purchasing power) and factor conditions (such as human capacity) largely determine the feasibility and the development of firms that are inhibited in the “Context for firm Strategy and Rivalry”.

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India City Competitiveness Report 2011

Each pillar is an array of cluster that determines the primary and the important concerns of a region. However, the Diamond Model integrates these various clusters that are inclined towards one dimension so as to provide a framework of overall productivity or growth of a region. The presence of a deep cluster significantly affects the capabilities to develop the competitive choices it can make and the output that it can generate from its internal assets. The diamond framework tells that almost everything that matters and is vital for competitiveness like roads, education institutions, financial market, firms operation and so on. Many of these impacts are deeply rooted in a region’s culture, its people and Government. Thus the four pillars together provide a complete structure to measure competitiveness.

1.3 Why is it Required? Globalization across the world has highly influenced its cities and has allowed them to become the future growth centers. They are transforming into autonomous local management-logistic centers where competitiveness between cities has become a prime and the only tool to gauge their performance. Assessing city competitiveness is an attempt to evaluate a city’s economic, social, political, environment strength and potential. However, cities are not competing on the same platform as the firms are because the primary motive does not take into account the marketable output or the maximization of the rate of return on assets. Certainly, cities do not have just one output or input. Moreover they deal with the different aspects that influence the overall competitiveness level of a city. To meet the demand of one city, resources are leveraged or taken from the market of other cities. So other cities provide the markets for the output of its firms so cities are necessarily collaborative as well as competitive.

1.4 Keynote of the Report India City Competitiveness Report 2011 throws light on the concepts that are known to all but are barely realized. This report will focus on the following views:

Moving Towards Urbanization India is urbanizing fast. This transition will witness India’s urban population reach a figure close to 600 million by 2031 and is not just a shift of demographics. It has placed cities and towns at the center of India’s development trajectory. In the coming decades, it will play a crucial role in the structural development of the Indian economy.

Competitiveness Resulting into Holistic Growth Competitiveness is a highly complex concept that is perceived differently by different people. It deals with the parameters that determine efficiency between two entities. It compromises of domestic investment, domestic innovation, physical infrastructure, skilled workforce etc. that eventually determine the level of productivity and hence is a holistic approach to assess the growth of a region.

Increase or Decrease in the Level of Prosperity Prosperity of a location is determined by its productivity, which in turn is dependent on the output and growth of its companies. A region cannot be competitive unless the companies (domestic as well as subsidiaries of foreign companies) operating are competitive. However, their productivity depends on various dimensions and the sophistication provided to them in terms of rules and regulations, land use, access to raw material, cultural aspect etc. In addition, the rise or decline of the overall human development also influences the prosperity of a region.

Areas of Concern There are striking differences between the various regions in terms of economic, political, business environment, social factors. There

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is a prerequisite need to look deep into the matter and resolve them amicably on time. It will require an equal support from the Government as well as from the people of its region.

Government’s Role Government is the key authority that takes into consideration the varied and associated dimensions of a region. They play an inevitable role at all levels (central, state, district) in the competition because it affects many facets of the business environment. They are responsible for creating and refining the milieu in which the companies flourish and grow. For instance, the collection of taxes under the tax policies impacts the infrastructure development of a region and indirectly influences the prevailing competition and rivalry among the firms. On a similar note, the education policies help to determine the growing pool of think tank or educated workforce of a region that ultimately is beneficial for the firms to operate in or near to those locations. For instance, Pune is one of the institutional hubs in the country so many industries are set up in and around the region. Thus there are various Government laws (environmental laws, laws governing the investment, consumer protection laws, land use related laws etc.) that directly influence the operation of firms in a region. In addition, Local Government usually has a key role in the conception and management of the environment of key junctions like transportation and communication, in vital specialized quarters like finance, retail trade, culture and healthcare and the duty to frame and implement the city’s strategic vision.

Mutual Efforts Undertaken All the levels of Government, Institutions and Corporate organizations should work together in a planned model of the region so that it can get implemented and create an enabling business environment. Active participation is required from all the players that influence the growth of the region. However, it should be noted that the approach should be looked upon as a bottom up approach rather than a top down approach. In addition, players in their specified groups should be invited and welcomed. For instance, if more and more private players will approach and operate in the region then the region will prosper for example Gurgaon.

Moving Up the Value Chain It is important to appropriately align the various parameters with each other so as to provide a competitive edge to the region and thus the overall nation. It will be then possible to move up the value chain and have a slow but stable growth.

1.5 Competitiveness of Regions and Cities Competitiveness is a complex concept and difficult to associate it with the context of regions and cities. However, it is vital to look at the competitiveness level of the regions as well as the cities as they are the growth drivers of the country. Moreover the competitiveness of a region or a city eventually depicts the national, economic, social and political prosperity. Therefore the relative position of a region is its physical infrastructure, economic environment, social assets etc. which should be assessed to keep a track on its productivity and thus prosperity. According to the World Development Report 2009 the transformation that has helped the regions to become prosperous lies in the fact that “Growing cities, ever more mobile people, and increasingly specialized products are integral to development.” Hence it can be said that these domains should be looked upon to get a clear understanding of the country’s affluence. The competitiveness level identifies the attractiveness of the regions and thus exhibits the benefits and disadvantages associated with the place. As a result the connected factors of the region that is, firms who want to invest, people who want to get settled and the huge future investments to be made by the Government are decided on these factors. Since competitiveness is advantageous only when it moves from the bottom to top so it is crucial to strengthen the underground pillars of the country such that it is competitive on local,

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India City Competitiveness Report 2011

regional and global ground.

Box 1: An example - Understanding the City, the Suburbs and Urban Agglomeration Mumbai consists of two distinct areas, one being the ‘island city’ or just ‘the city’, and the other being ‘the suburbs’, which are again sub-divided into eastern and western suburbs. The suburbs are the areas beyond Mahim and Sion towards the north ending at Dahisar and Mulund, but they are not suburbs in the classical sense of being merely residential areas that are on the outskirts of a city or a town, they are now a part of the larger city. The structure of the city having changed over the decades. These areas have their own pockets of intense trading, shopping, office spaces, industrial activity. Wth increasing relocation of even corporate businesses, have now become a part of an extended city. However, the city and the suburbs are two distinct revenue districts of Maharashtra—Mumbai and Mumbai Suburban, together forming a major urban spread also known as ‘Greater Mumbai’. Even the immediate areas outside of this is contiguous to Mumbai. These contiguous areas themselves are major civic corporations, namely, Thane, Kalyan-Dombivli, Ulhasnagar, Bhiwandi-Nizampur, Navi Mumbai, Mira-Bhayandar. With Mumbai, the entire spread is the Mumbai Urban Agglomeration, spread over the neighboring Thane and Rajgad districts. Taking several other smaller towns like Panvel, Alibaug and several other villages, the entire larger spread is the Mumbai Metropolitan Region–the largest in the country. Mumbai as a city is equally influenced by its nearby areas and thus impact its competitiveness level. Thus every region or a city is not segregated from one another and is dependent on its nearby places to enhance its expertise or to built up an appropriate combination of economic, social, political and environmental system of its own.

In the India Competitiveness City Report 2011 it has been kept in mind to consider cities and regions that are highly influential and impact the country’s growth cycle. Therefore, three level of analysis is carried out at the state level, city level and at the district level. Thus providing a holistic outlook to the Competitiveness Index.

1.6 Urban India and its Urbanization Level The aspiring India is moving towards urbanization due to an increase in the GDP of the country. It witnessed an absolute increase in the population of urban areas in comparison to its rural areas. Such a scenario took place for the first time since independence when the rural to urban distribution is left approximately 68.84% and 31.16% respectively.

Population (in Crore)

2001

2011

Difference

India

102.9

121.0

18.1

Rural

74.3

83.3

9.0

Urban

28.6

37.7

9.1 Source: Census 2011

The level of urbanization has drastically increased from a figure of 27.81% in 2001 Census to 31.16% in 2011 Census. As a result the rural population declined from 72.19% to 68.84% thus indicating that the people are moving from rural areas towards urban areas. In other words, the poor have many reasons to move from poor places to areas where the development-taking place in the country. Thus regions are urbanizing rapidly.

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India City Competitiveness Report 2011

Urbanization takes place due to migration of people from one region to another or changes in the municipal boundaries and the reclassification of the region. For instance, town being converted to districts after their rapid growth and then district into upcoming cities etc. It has been estimated that the number of residents in cities will increase from a current number of 300 million to 590 million people by 2030. The incredible change of wave will require the future cities to incorporate several dimensions for the overall city development. It will require an integrated urban mobility system, 70% new employees will be required to fill in the vacancies, 1.2 trillion capital

Box 2: Urbanization in India (Hubs of Industrialization) Earlier in the pre-industrial era there were limited areas of urbanization or say limited urbanizing elements such as administration, defense, trade and religion. However, the bird of freedom after independence of India brought a wide improvement in its market and enhanced its economy on various spheres. After the industrial revolution and with the advancement in technology, the process of urbanization is moving on an on with some major improvements on its journey such as metropolitanization, suburbanization, the rise of new towns and the revival of the central city. The industrial urbanization in India is shaped by the following five metropolitan centers:

Cities

Called As

Major Centres

New Delhi

“National Capital”

Politics, trade, services

Mumbai

“Financial Capital”

Trade, finance, film industry

Bengaluru

“IT Hub”

Electronics, software manuf., chemical

Chennai

“Automobile Hub”

Automobile, hardware manuf., healthcare

Kolkata

“Cultural Capital”

Tertiary, IT/BPO, Manufacturing

investments etc. to serve the 91 million households of the middle class that is currently 22 million. Thus the city centers or clusters of cities are going to grow exceptionally fast. The next underlying challenge to be faced by the upcoming cities will be the infrastructure problem. In general it is one of the major obstacles in the success path of India. The infrastructure problem of India is directly linked to the traffic chaos. The average speed of traffic in India is close to 30-35 kms per hour on highway and to worsen the situation the average speed is about 12 -14 kms per hour in cities. These all dimensions depict the competitiveness or say the prosperity of the region. It is believed that the emerging India of 2020s will not comprise of the known metros like Delhi, Mumbai and Chennai etc. but will open the gateways for the new and middle class dominated cities like Ahmedabad, Pune and Surat etc. that are still emerging. Thus enhancing the overall growth of the country, creating new opportunities and heading the country from its developing stage to the developed stage.

1.7 Understanding the Urban Classification The cities in India City Competitiveness Report 2011 are selected from each tier category (that is, A-1, A, B1, B2) and are assessed on their competitiveness level. This classification is based on the Compensatory City Allowance (CCA) as provided by the Ministry. It has been laid down by the Fifth Pay Commission and is categorized on parameters pertaining to the cost of living, rates of real estate etc. The Indian cities are classified as:

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India City Competitiveness Report 2011

Metro Cities In India the metro cities are categorized in “Class A1”. They are Bengaluru, Chennai, Hyderabad, Kolkata and Mumbai.

Class ‘A’ Cities There are some cities that are growing rapidly in all dimensions but are one level below the criterion of metro cities. They are Ahmedabad, Coimbatore, Jaipur, Kanpur, Lucknow, Nagpur, Pune, Surat, Warangal, Vijayawada and Vishakhapatnam.

Class ‘B’ Cities The next level constitutes of cities that have potential but are at the nascent stage of development. This segment includes Agra, Allahabad, Amravati, Amritsar, Asansol, Aurangabad, Belgaum, Bhilai, Bhopal, Bhubaneswar, Chandigarh, Dehradun, Dhanbad, Guntur, Hubli-Dharwad, Indore, Jabalpur, Jalandhar, Jamshedpur, Jodhpur, Kakinada, Kochi, Kozhikode, Ludhiana, Madurai, Nashik, Nellore, Patna, Puducherry, Raipur, Rajahmundry, Rajkot, Ranchi, Sangli, Solapur, Srinagar, Thiruvananthapuram, Tiruchirapalli, Vadodara and Varanasi.

Expanded Cities Cities have significantly expanded such that they have taken into consideration the nearby small towns and other areas. Some of the city regions are:

Delhi - Delhi being the National Capital of India has influenced its near by region like Noida that lies in Uttar Pradesh and Gurgaon which is a part of Haryana. These two places are are booming immensely and are the new industrial hubs surrounding the capital. Since the population of Delhi is constantly increasing, the city is not able to accommodate the increasing population’s demands; these cities are acting as an alternatives. They are essentially setting up a web of private firms.

Mumbai - Mumbai already has numerous challenges with its rising poverty, lack of infrastructure, lack of land etc. and being the Financial Capital of the country it is vital for it to serve the people. Therefore the nearby urban areas in Thane district like Dombivli, Bhayandar, /Ulhasnagar, Navi Mumbai, Thane and Virar are evolving to support Mumbai.

Kolkata - Kolkata has a pool of immense talent and is a prominent city. However, it falls short in meeting the growing needs of the people. Therefore the areas like Baranagar, Brasat, Dum Dum, Kamarhati, Panihati, and Salt Lake City are growing fast to open the gates for new dimensions.

Chennai - Chennai is the South India’s most conspicuous and developed city. The sibling urban growth centers are Ambattur, Avadi and Tiruvotivur in Thiruvalli District.

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In the City Competitiveness Report 2011 report following cities are assessed and are categorized on the basis of the class:

Name of State/ U.T. Andhra Pradesh

A-1 Hyderabad (UA)

A _

Vijayawada (UA),

Visakhapatnam (UA)

Assam

Bihar

Patna (UA)

Chandigarh

Delhi

Delhi (UA)

Gujarat

Rajkot (UA), Vadodara (UA)

Haryana

Faridabad, Gurgaon (UA)

Jammu & Kashmir

Jharkhand

Karnataka

Bengaluru (UA)

Ahmedabad (UA), Surat (UA)

Guwahati (UA)

Srinagar (UA), Jammu (UA)

Jamshedpur (UA),

Ranchi (UA)

Dhanbad (UA) _

Mysore (UA) Kozhikode (UA),

Kerala

Kochi (UA)

Thiruvananthapuram (UA)

Madhya Pradesh Maharashtra

_ Greater Mumbai (UA)

Jabalpur (UA), Bhopal (UA), Indore (UA)

Nagpur (UA), Pune (UA)

Nashik (UA)

Orissa

Bhubaneswar (UA)

Puducherry

Puducherry (UA)

Punjab

Amritsar (UA), Ludhiana

Rajasthan

Jaipur

Tamil Nadu

Chennai (UA)

Uttaranchal

Uttar Pradesh West Bengal

_ Kolkata (UA)

Lucknow (UA), Kanpur (UA) _

Coimbatore (UA), Madurai (UA) _

_ Dehradun (UA)

Meerut (UA), Agra (UA), Allahabad (UA), Varanasi

(UA), Noida (UA) Asansol (UA)

_ Source: Ministry of Finance UA* Urban Agglomeration

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India City Competitiveness Report 2011

2. Methodology “ There is a near perfect correlation between urbanization and prosperity across nations.” -Edward Ludwig “Ed” Glaeser, An economist at Harvard University Implying that the country with more cites and urban areas are almost consistently better endowed in most fundamental areas of well being including everything from income to cultural stimulation. Likewise in India, the secret behind cities growth is the combined magic of human ingenuity and industriousness. As a result the pace of urbanization in Indian cities is very rapid and the emerging cities are increasingly exploring the new hidden dimensions. India City Competitiveness Report 2011 takes into consideration 50 most prosperous Indian cities on the basis of various parameters for competitiveness, as mentioned in Michael E. Porter’s Microeconomic model.

2.1 Units of Analysis The India City Competitiveness Report 2011 deals with 50 different cities across the country ranging from north to south and east to west. However, it is equally important to understand the underlying genesis behind the term city and the associated terms linked with cities, as stated by the Government of India in their Census India 2011.

Definition: Town According to Census of India 2011, the definition of a town is as follows: 1.

All places with a municipality, corporation, cantonment board or notified town area committee, etc.

All other places which satisfied the following criteria:

A minimum population of 5,000

At least 75 per cent of the male main working population engaged in non-agricultural pursuits

A density of population of at least 400 persons per sq. km.etc.

The first category of urban units is known as Statutory Towns. These towns are notified under law by the concerned State/UT Government and have local bodies like municipal corporations, municipalities, municipal committees etc. irrespective of their demographic characteristics as reckoned on 31st December 2009. Examples: Vadodara (Municipal Corporation), Shimla (Municipal Corporation) etc. The second category of Towns (as in item 2 above) is known as Census Town. These were identified on the basis of Census 2001 data.

City A city can be defined in terms of a town, as it is essentially a town, which constitutes of a population of nearly 100,000 people or above.

Urban Local Body The Urban Local Body (ULB) can be defined as an entity, which is responsible for the governance of a city and is usually termed as a Municipal Corporation (MC). The cities that are larger in size generally have appointed urban development authorities that are in charge of the city and the entire planned area around the city. The jurisdiction and performance of ULB’s vary from city to city depending on number of factors. To illustrate, Mumbai and suburban Mumbai fall under the governance of the same body, that is, ULB.

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India City Competitiveness Report 2011

Urban Agglomeration (UA) An urban agglomeration is a continuous urban spread constituting a town and its adjoining outgrowths (OGs), or two or more physically contiguous towns together with or without outgrowths of such towns. An Urban Agglomeration must consist of at least a statutory town and its total population (i.e. all the constituents put together) should not be less than 20,000 as per the 2001 Census. In varying local conditions, there were similar other combinations which have been treated as urban agglomerations satisfying the basic condition of contiguity. Examples: Greater Mumbai UA, Delhi UA, etc. The adjacent locations may be large or small, planned or spontaneously arisen, with or without quality infrastructure either benefit from or complement the economic progress of the region as a whole.

District The lack of clarity in city boundaries has also meant that for certain indicators the study used district level data. For nearly all the cities studied, the district identifies closely with the city, as they are district capitals. Thus, the district as a unit of analysis has been used in certain instances.

Out Growths (OG) An Out Growth (OG) is a viable unit such as a village or a hamlet or an enumeration block made up of such villages or hamlets and is clearly identifiable in terms of its boundaries and location. Some of the examples are railway colonies, university campuses, port areas, military camps etc., which have come up near a statutory town outside its statutory limits but within the revenue limits of a village or villages contiguous to the town. While determining the outgrowth of a town, it has been ensured that it possesses the urban features in terms of infrastructure and amenities and physically contiguous with the core town of the UA. Each such town together with its outgrowth(s) is treated as an integrated urban area and is designated as â&#x20AC;&#x2DC;urban agglomerationâ&#x20AC;&#x2122;. In the 2011 Census, 475 places with 981 OGs have been identified as Urban Agglomerations as against 384 UAs with 962 OGs in 2001 Census. In the Census 2011 there are 7,935 towns in the country. The number of towns has increased by 2,774 since the last Census. Many of these towns are part of UAs and the rest are independent towns. The total number of Urban Agglomerations/ Towns, which constitute the urban frame, is 6166 in the country.

Number of UAs/Towns and Out Growths (OGs): Type of Towns/UAs/OGs

Number of Towns

Difference

2011 Census

2001 Census

Statutory Towns

4,041

3.799

Census Towns

3,894

1,362

Urban Agglomerations

475

384

Out Growths

981

962

2.2 Data Sources and their Quality Data collection is a challenging task and it becomes more problematic in the context of cities because of the rapid urbanization that is taking place in the country. However, the importance of correct and relevant data cannot be overlooked. Therefore alike the previous reports, India City Competitiveness Report 2011 has used data from reliable sources that are mainly the data published by the Government of India through reports and disseminated by the various ministries in different operational areas and Government

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organizations. The study uses hard data to eliminate the possibility of personal bias or sampling errors. The data collection for India City Competitiveness Report 2011 undertook many difficulties due to the deficiency of appropriate data even at the Government data bank. So the research team resolved the issue by calculating the data for those certain cities by using the other dependent variables. It is a surprising situation that cities are growing and developing at such a fast pace but they are still a narrowly understood unit for data collection and policy analysis. Cities, despite their growing economic importance, have not received the right amount of attention by the city level organizations. It resulted into an inadequate amount of data present for the studies. Some of the variables that were significant and easy to locate were population, education related data and basic health, crime etc. However, data for cities pertaining to industries, technology and infrastructure was hard to source. To avoid loopholes in the data collection, it was strictly kept in mind to fill the breaks in the data structure with data of an entity of a similar size or character to prevent undue bias, due to either favorable or negatively correlated data being introduced in the conclusion. Hard facts have allowed robustness and standardization of data across all cities backed with normalization ensuring consolidation of data across the varied units of measurement.

2.3 City Competitiveness Index The India City Competitiveness Report 2011 has been gauging the various cities on the parameters that fall under the Microeconomic Competitiveness: The Diamond Model. Earlier only 37 cities were taken into consideration but globalization and industrialization has revolutionized the cities and has made them competitive against each other. As a result in this report the number of cities was increased to 50 and was measured under the four pillars of competitiveness. The four vital pillars are factor condition, demand conditions, related and supporting industries and context for strategy & rivalry that assess the competitive potential and prosperity of a city. These major heads are further classified to obtain an in depth knowledge of the operations, governance, livability and sustainability aspect of the cities. These factors are quantified on the basis of sub indices, which are based on sets of indicators. Each of these sub indices is further classified to dig deeper on the variables that influence the cities. For instance, the population, literacy rate, transport conditions, factories operating etc. of cities helps to understand the importance and distinctiveness of each city. The Competitiveness Index is a three-fold measure, which originates at the ground level, aggregates to sub-indices and finally shapes an index at the city level. Each of the sub-indices are originated and managed on the basis of the indicators that are further grouped

The Four Pillars and their Sub-Indices: 1. Financial 2. Physical Factor Conditions

3. Communication 4. Administrative 5. Human capacity 6. Innovation

Demand Conditions Context for Firm Strategy and Rivalry Supporting and Related Industries

1. Demographics 2. Income Distribution 1. Competition Intensity & Diversity of Firms 2. Business Incentives 1. Supplier Sophistication 2. Institutional Support

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India City Competitiveness Report 2011

together on the foundation of theoretical constructs and self-evident inclination. Thus the different four pillars and their followed categorization in terms of sub-indices helps to provide a holistic viewpoint about the cities.

2.4 Data Analysis The final result of report depicts the positions attained by cities on various grounds in India and indicating its superiority against other cities. To reach the overall outcome of the study several seemingly significant figures have been taken into consideration from all major fields. The database created for the index is widespread and rigorous since it covers indicators spread across a vast plane of performance and current status so as to gain a better realization about the Indian cities and their competitiveness. The indicators were synchronized with the Microeconomic Competitiveness: The Diamond Model to arrive at the final index for competitiveness. The weights were assigned to each indicator and sub-indicator after a broad and methodical research. The indicators were classified into sub-indices of the four pillars and were further broken down to attain the actual variables that can describe the city. To prevent multi collinearity among the different parameters, because of the use of Principle Component Analysis, the weights were prudently placed on each indicator and sub index. Furthermore, even small quantum changes and their subsequent effects are easily evident on the factors influencing competitiveness if the data follows the hard path. If looked upon from a strategy formulation and policy execution outlook then the measure determines reliability and transparency when selecting the variables to determine the competitiveness of a city in the country. Institute for Competitiveness with its India City Competitiveness Report 2011 brings in a list of top to bottom cities that are competing against each other to provide better conditions to their residents, excel on various fields and compete not only on national level but on a world class platform. Thus it is an attempt to target the developed or developing Indian cities and measure their competitiveness with one another so as to assess their strengths and weaknesses.

2.5 Steps Undertaken A methodological and a standardized process was followed while structuring the report that comprises of the selection of variables, assigning weights, analyzing the data bank and further proceeding with the report. Broadly, the steps used to measure the competitiveness of any city can be listed as follows.

STEP 1: Developing a Framework All tasks require a systematic format or strategy to be followed subsequently and thus obtain an appropriate result. The Microeconomic Competitiveness Model can be used for measuring the competitiveness of different entities, as it is a renowned and a proven concept for the same.

STEP 2: Identifying the Relevant Parameters Competitiveness is a broad term, comprising of various factors that in a certain way impact the state of an entity. Therefore selection of appropriate parameters and its associated variables is an important task so as to generate a correct and feasible result. The central variables should be classified into quantitative and related sub-indices that in real time portray the city condition.

STEP 3: Collection of Data The data bank was prepared and enhanced through the secondary data that was collected from the reliable sources such as Government sources or its linked entities. To develop an effective and different report, focus was laid upon only on the data that was restricted over a period of time (years), as it would exhibit the current status of the various cities. These were some of the major factors that highly

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influence the city and its operations, conditions and prosperity. Therefore, it is essential for competitiveness index to be based on the data that is taken from real time and is current in nature, so as to provide a better scenario about the city and its opportunities.

STEP 4: Analyzing the Various Component of Factor Conditions One pillar of competitiveness is constituted by factor conditions, which includes the financial market, the physical conditions, the communication modes and their availability, the administration process, the human capacity of the region and the degree of innovation. These are relatively permanent variables and require a long time to further progress and change. However, these are significant in the growth of any city.

STEP 5: Exploring the Demand Conditions This parameter basically deals with the demographics and the distribution of income in the various regions. It determines the population levels and the purchasing power within a region that can be helpful for the prospective industries and services that are planning to set up in the specific location.

STEP 6: Examining the Business Opportunities The third pillar brings forth the information that would interest the business world. This index is related and supporting industries that can be segregated into Competition Intensity & Diversity of firms and the linked business incentives that include the activities concerning the processes which can be utilized by the businesses for their advantage and to further provide a distinct competitive advantage to the city as well.

STEP 7: Investigating about the Threat and Opportunities An index on the context of rivalry and strategy that provide the details about the supplier sophistication and institutional support generates information regarding the internal and external dynamics that determine the performance of the cities. The internal factors determine the local control of the cities and the external dynamics deals with the resources that can be utilized for the development of the city.

STEP 8: Computing the Competitiveness Index The various indicators identified and their current data is now tabled and calculated under various categories and then consolidated to reach the final outcome. The grouping is basically self-evident and just requires the basic computation on the basis of their weights. The data may put forth some varied results like some of the indicators cast a negative impact and others a positive effect. Thus systematically and vigilantly monitoring the data will result into the real scenario prevailing across the cities of India.

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3. Rankings Rapid growth has accelerated the formation of new cities, as a result rural India is transforming into urban India. However, each city has its own strengths and weakness that increase or decrease its attractiveness on the competitiveness index. All the cities today are planning to adopt the Integrated City Approach so as to have a planned land-use, access and transport infrastructure. India City Competitiveness Report 2011 with its competitiveness index on fifty cities reveals the overall ranking in which Delhi is the Most Competitive Indian City. A major shift has been witnessed in the ranking of some Indian cities, moreover there are some cities in southern India that have significantly emerged and are outshining on the index. Thus surpassing the cities that were demonstrating high level of progress in the Indian City Competitiveness Report 2010 rankings. Some cities are climbing up the ladder of development at a fast pace thus making it attractive for the people to live in, profitable for the corporate world to invest and seeking sufficient attention from the Government to take required actions to increase its prosperity. In addition, the comprehensive competitiveness index labels the improvement or downfall of the Indian cities under various dimensions of factor conditions, demand conditions, context for firm strategy & rivalry and related & supporting industry. Some cities are losing their grip whereas others have surged ahead to achieve better rankings.

The Top 10 Achievers: Most Competitive Cities in India The capital of India has again succeeded in retaining the number one slot on the competitiveness index and is thus ranked as the Most Competitive Indian City in 2011. It has stabilized its growth cycle and has maintained and enhanced it over a period of time. However, Mumbai has jumped one slot upwards to reach the 2nd position and has surpassed Chennai that holds a 5th position in India City Competitiveness 2011 ranking. On a similar note, Bengaluru has moved up one slot that is, from 4th last year to 3rd position this year. Pune has been ranked in the 4th place and has shown a huge amount of progress in major dimensions. Gurgaon moved into the top ten achievers category, from 13th place last year to 6th place in 2011. Kolkata dropped two spots to 7th place while Hyderabad and Ahmedabad slipped to 8th and 9th place respectively. Jaipur has maintained its status quo at the 10th place for two consecutive years. The top 10 achievers consist of the four major metropolitan cities (Delhi, Mumbai, Chennai and Kolkata) and the other four popular but new metropolitan cities (Bengaluru, Pune, Hyderabad and Ahmedabad). These cities are the success drivers for their respective states as these contribute economically, influence socially and politically on a large scale. These cities contribute significantly in enhancing Indiaâ&#x20AC;&#x2122;s overall competitiveness as they attract and retain the resources and opportunities.

The 11-20 Positions: Holding Immense Potential It is surprising to note that Noida has shown a tremendous improvement by climbing six positions and reaching at the 11th position. However Surat has maintained its rank at the 12th position by developing the requisite skills to remain competitive. The city that has fallen down from the top rank slots of 2010 is Nagpur holding a 13th position in 2011. Similarly Chandigarh and Indore have slipped from their previous positions to 15th and 20th positions respectively. Another city that has improved on the competitiveness scale is Kochi and is at 14th position. Vadodara, Thiruvananthapuram, Nashik and Rajkot hold 16th, 17th, 18th and 19th position respectively. These cities in the 11-20 Band are the ones that hold immense potential to enter the list of top ten cities and give them strong competition, as these are the Indiaâ&#x20AC;&#x2122;s upcoming growth centers. Giant corporate houses from all sectors are investing in these cities due to the benefits linked with these developing cities. For instance, Noida due to its close proximity with Delhi and Gurgaon is favored

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more than Meerut or Faridabad etc. It possesses the necessary resources and the Government regulations have made the task easier. Thus the city has improved its overall rank and is a favored location by many people to reside and business houses to operate in. Moreover these cities are well acquainted with the demand opportunities and the supply assets such as cheaper locations and skilled workforce. India City Competiveness Report 2011 through its rankings clearly distinguishes these cities from the rest based on the improvemnet in their rankings in different indicators. However they need to strategize appropriately to gain maximum benefit of their present positions and enhance it in the near future.

The 21-30 Positions: On the Growth Path Some South Indian cities like Kozhikode, Mysore and Vishakhapatnam have risen up on the competitiveness index by holding 21st, 24th and 26th slot respectively but other south Indian cities like Coimbatore and Madurai have moved down to 22nd and 29th position. Uttar Pradesh capital, Lucknow has moved to 23rd position by working on its strong areas and developing its feeble sections. Goa, Kanpur, Bhopal and Ludhiana occupy the 25th, 27th, 28th and 30th positions. These cities are developing and moving ahead on the growth path. This band of cities cannot be easily neglected as each city has its own competitive edge. These may be considered as not so progressive by some people but if headed on the right path then these cities can reap great opportunities for India. For example, the state capitals Bhopal and Lucknow are growing immensely in their size and business opportunity apart from being the administrative centers. Moreover these cities are worth tracking so as to increase the states competitiveness and thus the countryâ&#x20AC;&#x2122;s prosperity.

The 31-40 Positions: Seeking New Opportunities The next band of cities includes Vijayawada, Agra and Patna and may not have the focus from people when we speak of competitiveness today but these indirectly impact the competitiveness of the country. Among these Vijayawada, Patna, Allahabad, Amritsar, Meerut and Puducherry have risen up to 31st, 33rd, 34th, 36th, 37th and 39th ranks respectively. However the only city in this band that has maintained its position and did not move from its position is Bhubaneswar, fixed at the 35th position. The cities of Agra and Varanasi along with Guwahati have dropped to 32nd, 38th and 40th positions respectively. The potential of these cities has not been explored till date. These might not be perfect in all aspects and may have some loopholes. However these are looking for appropriate opportunities to illustrate their potential. For example, Agra and Puducherry are attractive tourist destinations that if presented well, will not only draw the masses from the county but also from outside its borders.

The 41-50 Positions: In a Developing State West Bengalâ&#x20AC;&#x2122;s city Asansol has moved up to the 41st position. Similarly Ranchi has jumped to 47th spot. The cities - Jammu, Shimla, Dehradun, Srinagar, Jabalpur, Faridabad, Jamshedpur and Dhanbad have slipped to positions 42nd, 43rd, 44th, 45th, 46th, 48th and 49th respectively. These cities contribute considerably to Indiaâ&#x20AC;&#x2122;s Competitiveness but are far below from the rest of the cities. These cities can only be exploited to further level if Government, its people and the business giants understand the competitiveness of these cities.

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Overall Competitiveness Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

78.02

136.55

Vishakhapatnam

55.48

97.10

Mumbai

72.93

127.63

Kanpur

55.48

97.10

Bengaluru

65.28

114.24

Bhopal

55.45

97.03

Pune

64.27

112.47

Madurai

55.44

97.02

Chennai

62.75

109.81

Ludhiana

55.35

96.86

Gurgaon

62.30

109.02

Vijayawada

55.32

96.82

Kolkata

61.99

108.49

Agra

55.12

96.46

Hyderabad

61.76

108.08

Patna

54.87

96.03

Ahmedabad

60.86

106.50

Allahabad

54.62

95.58

Jaipur

59.72

104.52

Bhubaneswar

54.59

95.53

Noida

59.33

103.83

Amritsar

54.46

95.31

Surat

58.85

102.98

Meerut

54.06

94.61

Nagpur

58.48

102.35

Varanasi

53.91

94.34

Kochi

58.06

101.61

Puducherry

53.84

94.22

Chandigarh

58.01

101.52

Guwahati

53.65

93.89

Vadodara

57.38

100.42

Asansol

53.63

93.86

Thiruvananthapuram

57.31

100.30

Jammu

53.62

93.83

Nashik

57.14

100.00

Shimla

53.59

93.78

Rajkot

57.07

99.88

Dehradun

53.58

93.77

Indore

57.04

99.83

Srinagar

53.09

92.92

Kozhikode

56.62

99.09

Jabalpur

52.72

92.27

Coimbatore

56.51

98.89

Ranchi

51.97

90.96

Lucknow

56.17

98.31

Faridabad

51.66

90.40

Mysore

55.57

97.25

Jamshedpur

51.66

90.40

Goa

55.51

97.15

Dhanbad

50.97

89.21

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Factor Conditions Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

72.19

126.44

Srinagar

56.36

98.71

Mumbai

70.28

123.10

Surat

56.29

98.59

Gurgaon

64.23

112.49

Kanpur

56.22

98.47

Hyderabad

63.83

111.81

Bhubaneswar

55.86

97.84

Bengaluru

63.49

111.20

Kozhikode

55.84

97.81

Kolkata

62.96

110.28

Jammu

55.59

97.37

Chennai

62.48

109.44

Vijayawada

55.55

97.29

Chandigarh

61.24

107.26

Puducherry

55.49

97.19

Indore

60.93

106.72

Lucknow

55.42

97.07

Pune

60.89

106.65

Jabalpur

55.05

96.42

Noida

60.78

106.46

Asansol

54.84

96.05

Bhopal

59.64

104.46

Madurai

54.71

95.83

Ahmedabad

58.35

102.20

Ludhiana

54.66

95.74

Coimbatore

58.32

102.15

Agra

54.51

95.47

Guwahati

58.30

102.11

Dehradun

53.45

93.61

Kochi

57.97

101.54

Amritsar

53.29

93.34

Jaipur

57.68

101.03

Nashik

53.11

93.02

Nagpur

57.54

100.79

Varanasi

53.08

92.98

Thiruvananthapuram

57.41

100.55

Patna

52.96

92.76

Goa

56.92

99.70

Meerut

52.74

92.38

Mysore

56.84

99.55

Allahabad

52.44

91.85

Vadodara

56.83

99.53

Ranchi

50.75

88.89

Vishakhapatnam

56.77

99.44

Jamshedpur

49.74

87.13

Shimla

56.76

99.41

Faridabad

48.90

85.65

Rajkot

56.39

98.77

Dhanbad

48.79

85.45

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Financial Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Mumbai

83.38

145.91

Shimla

56.23

98.40

Delhi

70.03

122.55

Noida

56.17

98.30

Hyderabad

67.16

117.54

Srinagar

56.14

98.24

Kolkata

66.64

116.62

Amritsar

56.13

98.22

Chennai

65.90

115.33

Rajkot

55.88

97.78

Gurgaon

65.29

114.26

Kanpur

55.37

96.89

Indore

63.27

110.72

Pune

54.50

95.37

Bengaluru

62.15

108.77

Faridabad

54.30

95.03

Vishakhapatnam

62.06

108.60

Jammu

54.21

94.87

Ahmedabad

61.56

107.72

Varanasi

53.52

93.66

Chandigarh

60.90

106.58

Coimbatore

53.52

93.66

Guwahati

60.89

106.56

Agra

53.21

93.11

Lucknow

60.78

106.36

Ranchi

51.87

90.77

Thiruvananthapuram

60.59

106.04

Mysore

51.83

90.70

Jaipur

60.02

105.04

Vijayawada

51.57

90.25

Bhubaneswar

59.72

104.50

Dehradun

51.25

89.68

Bhopal

59.22

103.64

Meerut

51.09

89.41

Ludhiana

59.04

103.31

Puducherry

50.73

88.78

Kochi

58.45

102.28

Allahabad

50.56

88.48

Nashik

57.98

101.46

Goa

49.74

87.05

Vadodara

57.12

99.96

Kozhikode

48.75

85.31

Asansol

57.11

99.94

Dhanbad

48.50

84.88

Patna

57.02

99.78

Madurai

48.43

84.75

Nagpur

56.83

99.46

Jabalpur

47.85

83.73

Surat

56.73

99.27

Jamshedpur

45.97

80.45

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Physical Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

95.45

166.96

Puducherry

57.31

100.25

Bengaluru

64.46

112.75

Jaipur

57.21

100.06

Kolkata

64.02

111.99

Asansol

57.13

99.93

Mumbai

63.77

111.53

Indore

57.09

99.86

Hyderabad

62.55

109.42

Chandigarh

56.89

99.52

Chennai

62.37

109.09

Noida

56.57

98.94

Pune

62.03

108.49

Kanpur

56.44

98.71

Kochi

61.57

107.69

Vijayawada

56.40

98.64

Goa

61.19

107.03

Agra

56.15

98.22

Mysore

60.86

106.45

Rajkot

55.93

97.83

Thiruvananthapuram

60.61

106.02

Meerut

55.69

97.41

Srinagar

60.30

105.48

Amritsar

55.41

96.91

Coimbatore

60.10

105.12

Allahabad

55.37

96.85

Kozhikode

59.20

103.56

Varanasi

55.09

96.35

Vadodara

58.95

103.11

Ludhiana

54.90

96.04

Vishakhapatnam

58.77

102.80

Nashik

54.85

95.94

Guwahati

58.37

102.09

Jamshedpur

52.28

91.45

Ahmedabad

58.18

101.77

Dehradun

52.13

91.19

Bhopal

58.07

101.58

Dhanbad

51.74

90.49

Madurai

58.05

101.55

Lucknow

51.54

90.14

Gurgaon

57.94

101.35

Bhubaneswar

51.03

89.27

Patna

57.92

101.32

Jabalpur

50.36

88.08

Surat

57.55

100.66

Nagpur

50.05

87.54

Jammu

57.52

100.61

Ranchi

46.97

82.16

Shimla

57.38

100.37

Faridabad

16.82

29.42

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Communication Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

73.43

128.50

Lucknow

55.52

97.16

Mumbai

72.19

126.33

Vijayawada

55.30

96.77

Indore

69.14

121.00

Ludhiana

55.17

96.54

Gurgaon

68.65

120.15

Varanasi

54.85

95.99

Bengaluru

67.53

118.18

Ahmedabad

54.64

95.62

Kolkata

66.28

115.98

Patna

54.31

95.04

Bhubaneswar

65.78

115.12

Vishakhapatnam

54.31

95.03

Jaipur

65.37

114.39

Surat

53.87

94.28

Bhopal

65.23

114.15

Amritsar

53.80

94.15

Nagpur

63.91

111.84

Guwahati

53.40

93.46

Jabalpur

63.61

111.31

Meerut

53.32

93.32

Pune

61.86

108.25

Allahabad

52.98

92.71

Chandigarh

61.68

107.94

Goa

52.85

92.48

Hyderabad

61.36

107.38

Dehradun

52.52

91.91

Kanpur

61.15

107.01

Jammu

52.20

91.36

Shimla

61.03

106.80

Srinagar

52.20

91.36

Faridabad

60.02

105.04

Madurai

50.91

89.10

Asansol

59.28

103.74

Nashik

50.11

87.69

Vadodara

59.20

103.59

Ranchi

49.05

85.83

Chennai

58.63

102.61

Kochi

47.85

83.74

Noida

58.10

101.67

Puducherry

47.63

83.35

Coimbatore

57.90

101.32

Kozhikode

46.45

81.30

Rajkot

56.87

99.52

Jamshedpur

45.92

80.37

Agra

56.26

98.45

Thiruvananthapuram

44.07

77.12

Mysore

55.95

97.91

Dhanbad

43.52

76.16

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Administrative Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Noida

78.52

137.42

Nagpur

55.99

97.99

Guwahati

72.27

126.47

Dehradun

55.97

97.95

Gurgaon

69.51

121.64

Ahmedabad

54.77

95.84

Hyderabad

66.51

116.40

Shimla

54.43

95.25

Bhopal

65.95

115.42

Kozhikode

54.41

95.22

Jammu

64.19

112.33

Vijayawada

54.39

95.17

Mumbai

63.53

111.18

Jamshedpur

54.38

95.17

Bengaluru

62.76

109.82

Pune

54.25

94.95

Indore

62.62

109.58

Agra

54.16

94.78

Puducherry

62.11

108.70

Coimbatore

54.09

94.66

Chandigarh

61.38

107.42

Bhubaneswar

53.92

94.35

Jabalpur

60.74

106.29

Kochi

53.85

94.24

Delhi

59.99

104.98

Meerut

52.30

91.52

Lucknow

59.70

104.47

Vishakhapatnam

52.29

91.51

Srinagar

59.56

104.22

Ludhiana

51.49

90.10

Jaipur

58.74

102.79

Amritsar

51.47

90.07

Kanpur

58.73

102.78

Rajkot

51.33

89.82

Kolkata

57.93

101.37

Surat

51.15

89.51

Faridabad

57.68

100.93

Madurai

50.99

89.23

Patna

57.66

100.91

Nashik

50.77

88.85

Mysore

57.60

100.81

Varanasi

50.19

87.84

Ranchi

57.59

100.78

Vadodara

49.75

87.06

Chennai

56.20

98.35

Asansol

49.33

86.32

Goa

56.18

98.32

Dhanbad

49.18

86.06

Thiruvananthapuram

56.05

98.10

Allahabad

48.60

85.04

enhancing prosperity

India City Competitiveness Report 2011

Human Capacity Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

71.25

125.40

Puducherry

56.65

99.71

Pune

68.51

120.58

Mysore

56.25

99.00

Mumbai

68.19

120.02

Kanpur

56.05

98.65

Chennai

64.35

113.25

Varanasi

55.77

98.15

Bengaluru

64.04

112.71

Ludhiana

55.45

97.59

Coimbatore

63.38

111.55

Dehradun

54.97

96.75

Kolkata

63.29

111.40

Vijayawada

53.86

94.79

Ahmedabad

63.13

111.11

Meerut

53.79

94.67

Kochi

61.61

108.44

Asansol

53.55

94.24

Thiruvananthapuram

61.56

108.35

Vishakhapatnam

53.35

93.91

Kozhikode

61.48

108.20

Amritsar

53.07

93.40

Gurgaon

61.32

107.92

Nashik

53.06

93.39

Chandigarh

60.94

107.26

Bhopal

52.81

92.94

Hyderabad

60.56

106.58

Jaipur

52.53

92.45

Surat

60.50

106.48

Faridabad

52.23

91.93

Rajkot

60.02

105.65

Jabalpur

50.98

89.73

Nagpur

59.56

104.83

Bhubaneswar

50.22

88.40

Allahabad

59.39

104.53

Ranchi

49.91

87.85

Indore

59.29

104.35

Dhanbad

49.88

87.79

Madurai

58.97

103.80

Jamshedpur

49.75

87.56

Goa

58.51

102.98

Jammu

48.63

85.59

Agra

58.51

102.98

Srinagar

48.62

85.58

Noida

57.98

102.05

Shimla

47.77

84.08

Vadodara

57.66

101.49

Guwahati

47.00

82.71

Lucknow

57.19

100.65

Patna

43.49

76.55

enhancing prosperity

2323

India City Competitiveness Report 2011

Innovation Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Mumbai

70.64

123.62

Guwahati

57.85

101.23

Chennai

67.45

118.04

Ahmedabad

57.81

101.17

Chandigarh

65.64

114.87

Noida

57.34

100.34

Hyderabad

64.86

113.50

Jammu

56.79

99.38

Kozhikode

64.76

113.33

Jabalpur

56.76

99.32

Kochi

64.51

112.88

Bhopal

56.57

99.00

Pune

64.21

112.36

Bhubaneswar

54.49

95.36

Shimla

63.69

111.45

Indore

54.16

94.78

Goa

63.05

110.33

Dehradun

53.83

94.21

Delhi

62.97

110.20

Asansol

52.64

92.12

Gurgaon

62.63

109.61

Faridabad

52.35

91.61

Vijayawada

61.77

108.09

Jaipur

52.23

91.41

Thiruvananthapuram

61.56

107.73

Ludhiana

51.94

90.90

Srinagar

61.32

107.31

Nashik

51.90

90.82

Madurai

60.93

106.63

Meerut

50.26

87.96

Coimbatore

60.93

106.62

Jamshedpur

50.15

87.77

Bengaluru

59.99

104.98

Dhanbad

49.91

87.34

Vishakhapatnam

59.86

104.75

Amritsar

49.89

87.30

Kolkata

59.61

104.31

Kanpur

49.60

86.79

Nagpur

58.91

103.09

Ranchi

49.11

85.95

Mysore

58.53

102.42

Varanasi

49.08

85.88

Puducherry

58.50

102.38

Agra

48.75

85.32

Rajkot

58.33

102.07

Lucknow

47.81

83.67

Vadodara

58.28

102.00

Allahabad

47.74

83.55

Surat

57.92

101.36

Patna

47.35

82.87

enhancing prosperity

India City Competitiveness Report 2011

Demand Conditions Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

83.01

145.27

Kozhikode

55.86

97.76

Mumbai

78.49

137.35

Goa

55.83

97.71

Bengaluru

72.00

126.00

Chandigarh

55.63

97.35

Pune

71.40

124.96

Asansol

55.52

97.17

Jaipur

64.85

113.48

Meerut

55.14

96.49

Ahmedabad

63.76

111.57

Kanpur

54.90

96.07

Nashik

63.41

110.97

Varanasi

53.66

93.91

Surat

62.81

109.92

Dehradun

53.03

92.80

Allahabad

59.34

103.84

Indore

52.87

92.52

Nagpur

59.17

103.56

Mysore

52.69

92.21

Patna

59.10

103.42

Madurai

52.62

92.09

Chennai

58.63

102.60

Ranchi

52.53

91.93

Lucknow

58.39

102.19

Faridabad

52.38

91.67

Vijayawada

57.92

101.36

Jammu

52.06

91.10

Rajkot

57.82

101.19

Srinagar

51.71

90.50

Kolkata

57.26

100.20

Dhanbad

51.69

90.45

Vadodara

57.25

100.18

Bhopal

51.64

90.36

Agra

57.14

100.00

Coimbatore

51.42

89.99

Hyderabad

57.05

99.83

Puducherry

51.37

89.91

Vishakhapatnam

57.02

99.78

Jabalpur

51.31

89.78

Thiruvananthapuram

57.00

99.75

Jamshedpur

51.19

89.59

Ludhiana

56.99

99.73

Bhubaneswar

51.14

89.50

Gurgaon

56.77

99.34

Shimla

51.07

89.37

Kochi

56.62

99.09

Noida

50.50

88.37

Amritsar

56.07

98.13

Guwahati

50.11

87.69

enhancing prosperity

2525

India City Competitiveness Report 2011

Demographics Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

101.00

176.75

Hyderabad

54.09

94.66

Mumbai

91.20

159.61

Mysore

54.07

94.62

Pune

81.32

142.31

Coimbatore

53.90

94.32

Bengaluru

76.06

133.11

Kochi

53.63

93.86

Jaipur

70.68

123.70

Ranchi

53.56

93.72

Allahabad

70.44

123.26

Indore

53.18

93.07

Nashik

68.96

120.69

Madurai

53.08

92.88

Ahmedabad

68.03

119.06

Kozhikode

52.89

92.55

Patna

67.23

117.64

Dhanbad

51.62

90.33

Surat

64.10

112.18

Amritsar

50.99

89.23

Vijayawada

61.52

107.66

Jabalpur

50.61

88.56

Agra

60.34

105.59

Bhubaneswar

50.13

87.73

Vishakhapatnam

59.78

104.61

Jamshedpur

49.99

87.48

Nagpur

59.48

104.09

Bhopal

49.09

85.91

Lucknow

59.40

103.94

Dehradun

47.28

82.75

Kanpur

59.34

103.85

Noida

47.05

82.33

Vadodara

58.98

103.21

Jammu

47.01

82.26

Varanasi

57.22

100.14

Faridabad

46.86

82.00

Rajkot

56.63

99.10

Gurgaon

46.04

80.57

Chennai

56.53

98.92

Srinagar

45.76

80.08

Kolkata

55.81

97.67

Puducherry

44.91

78.60

Meerut

55.55

97.20

Goa

44.85

78.49

Asansol

55.20

96.61

Guwahati

44.60

78.05

Ludhiana

55.15

96.51

Shimla

43.80

76.65

Thiruvananthapuram

54.74

95.79

Chandigarh

43.46

76.05

enhancing prosperity

India City Competitiveness Report 2011

Income Distribution & Spending Pattern Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Bengaluru

67.94

118.89

Srinagar

57.66

100.91

Chandigarh

67.79

118.64

Lucknow

57.39

100.44

Gurgaon

67.49

118.11

Jammu

57.11

99.94

Goa

66.81

116.92

Asansol

55.85

97.73

Mumbai

65.77

115.10

Guwahati

55.62

97.33

Delhi

65.03

113.80

Vadodara

55.51

97.15

Surat

61.52

107.66

Meerut

54.73

95.78

Pune

61.49

107.60

Vijayawada

54.31

95.05

Amritsar

61.16

107.03

Vishakhapatnam

54.26

94.95

Chennai

60.73

106.28

Bhopal

54.18

94.81

Hyderabad

60.00

105.00

Noida

53.95

94.41

Kochi

59.61

104.32

Agra

53.94

94.40

Ahmedabad

59.48

104.09

Indore

52.55

91.96

Thiruvananthapuram

59.26

103.71

Jamshedpur

52.40

91.70

Rajkot

59.01

103.27

Madurai

52.17

91.29

Jaipur

59.01

103.26

Bhubaneswar

52.16

91.28

Nagpur

58.87

103.02

Jabalpur

52.00

91.00

Kozhikode

58.84

102.97

Dhanbad

51.75

90.57

Ludhiana

58.82

102.94

Ranchi

51.50

90.13

Dehradun

58.78

102.86

Mysore

51.31

89.80

Kolkata

58.71

102.74

Patna

50.97

89.20

Shimla

58.34

102.10

Kanpur

50.46

88.30

Faridabad

57.90

101.33

Varanasi

50.10

87.68

Nashik

57.86

101.25

Coimbatore

48.95

85.66

Puducherry

57.84

101.21

Allahabad

48.24

84.42

enhancing prosperity

2727

India City Competitiveness Report 2011

Context for Firm Strategy & Rivalry Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

84.44

147.77

Varanasi

54.61

95.57

Mumbai

79.74

139.55

Indore

54.46

95.31

Noida

71.51

125.14

Kanpur

54.32

95.06

Gurgaon

70.07

122.62

Meerut

54.07

94.62

Chennai

66.13

115.74

Lucknow

53.87

94.27

Kolkata

64.22

112.38

Mysore

53.74

94.04

Nagpur

62.62

109.58

Agra

53.69

93.96

Bengaluru

62.55

109.46

Chandigarh

53.62

93.84

Pune

62.43

109.26

Bhopal

52.91

92.59

Kozhikode

61.80

108.15

Shimla

52.53

91.93

Coimbatore

61.55

107.72

Vijayawada

52.12

91.21

Madurai

60.87

106.52

Jabalpur

52.09

91.16

Kochi

60.24

105.42

Guwahati

52.02

91.03

Hyderabad

60.20

105.35

Vishakhapatnam

51.87

90.77

Thiruvananthapuram

59.09

103.41

Goa

51.81

90.67

Ahmedabad

58.97

103.20

Dehradun

51.73

90.53

Vadodara

58.31

102.04

Allahabad

51.00

89.24

Rajkot

57.78

101.12

Faridabad

50.76

88.83

Surat

57.78

101.11

Asansol

50.61

88.57

Jaipur

56.91

99.59

Patna

50.33

88.08

Ludhiana

56.34

98.59

Jammu

50.15

87.76

Amritsar

55.88

97.79

Srinagar

49.98

87.47

Puducherry

55.63

97.34

Jamshedpur

49.84

87.22

Bhubaneswar

55.50

97.12

Dhanbad

49.82

87.18

Nashik

54.85

95.99

Ranchi

49.79

87.13

enhancing prosperity

India City Competitiveness Report 2011

Competition Intensity & Diversity of Firms Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

91.92

160.85

Agra

56.29

98.51

Mumbai

72.28

126.49

Kanpur

56.29

98.51

Pune

67.76

118.58

Lucknow

56.07

98.13

Nagpur

66.57

116.49

Meerut

56.02

98.04

Noida

63.83

111.70

Mysore

54.88

96.04

Hyderabad

62.73

109.78

Chandigarh

54.35

95.12

Chennai

62.53

109.42

Nashik

53.41

93.46

Ahmedabad

62.46

109.30

Indore

52.48

91.85

Vadodara

62.43

109.26

Shimla

52.03

91.05

Thiruvananthapuram

62.37

109.15

Bhopal

51.29

89.75

Surat

62.33

109.08

Jabalpur

51.03

89.30

Rajkot

62.25

108.95

Dehradun

50.84

88.98

Kochi

61.73

108.03

Vijayawada

50.52

88.41

Coimbatore

61.57

107.76

Vishakhapatnam

50.52

88.41

Bengaluru

61.33

107.32

Faridabad

49.71

86.99

Gurgaon

61.22

107.14

Goa

49.64

86.87

Madurai

61.09

106.91

Allahabad

49.53

86.69

Kozhikode

60.81

106.42

Asansol

49.25

86.19

Puducherry

59.37

103.89

Patna

48.97

85.70

Jaipur

59.12

103.46

Guwahati

48.32

84.56

Bhubaneswar

58.98

103.21

Jamshedpur

48.08

84.14

Ludhiana

58.77

102.84

Dhanbad

48.03

84.05

Amritsar

58.64

102.62

Ranchi

48.02

84.03

Kolkata

57.50

100.63

Srinagar

47.82

83.69

Varanasi

56.33

98.58

Jammu

47.81

83.67

enhancing prosperity

2929

India City Competitiveness Report 2011

Business Incentives Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Mumbai

87.2

152.62

Rajkot

53.3

93.29

Noida

79.2

138.58

Surat

53.2

93.15

Gurgaon

78.9

138.10

Vishakhapatnam

53.2

93.13

Delhi

77.0

134.69

Jabalpur

53.2

93.02

Kolkata

70.9

124.12

Amritsar

53.1

92.96

Chennai

69.7

122.05

Shimla

53.0

92.82

Bengaluru

63.8

111.60

Varanasi

52.9

92.56

Kozhikode

62.8

109.88

Chandigarh

52.9

92.55

Coimbatore

61.5

107.68

Dehradun

52.6

92.09

Madurai

60.6

106.13

Mysore

52.6

92.04

Kochi

58.8

102.82

Jammu

52.5

91.85

Nagpur

58.7

102.66

Allahabad

52.5

91.80

Hyderabad

57.7

100.93

Kanpur

52.3

91.60

Pune

57.1

99.94

Srinagar

52.1

91.24

Indore

56.4

98.77

Meerut

52.1

91.19

Nashik

56.3

98.51

Bhubaneswar

52.0

91.03

Thiruvananthapuram

55.8

97.68

Asansol

52.0

90.95

Guwahati

55.7

97.50

Puducherry

51.9

90.80

Ahmedabad

55.5

97.10

Faridabad

51.8

90.67

Jaipur

54.7

95.71

Patna

51.7

90.47

Bhopal

54.5

95.42

Lucknow

51.7

90.41

Vadodara

54.2

94.82

Dhanbad

51.6

90.31

Goa

54.0

94.47

Jamshedpur

51.6

90.31

Ludhiana

53.9

94.35

Ranchi

51.6

90.22

Vijayawada

53.7

94.01

Agra

51.1

89.40

enhancing prosperity

India City Competitiveness Report 2011

Related & Supporting Industry Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

72.88

127.38

Lucknow

56.28

98.37

Hyderabad

67.28

117.59

Rajkot

56.27

98.36

Chennai

65.93

115.24

Nashik

56.06

98.00

Kolkata

65.41

114.33

Patna

55.95

97.79

Ahmedabad

62.15

108.64

Thiruvananthapuram

55.85

97.62

Mumbai

61.74

107.91

Faridabad

55.60

97.19

Chandigarh

61.14

106.87

Madurai

55.33

96.72

Bengaluru

60.61

105.95

Ranchi

55.16

96.41

Pune

60.45

105.66

Vishakhapatnam

54.87

95.91

Indore

60.06

104.99

Varanasi

54.80

95.79

Gurgaon

59.92

104.74

Nagpur

54.73

95.66

Mysore

59.81

104.55

Agra

54.42

95.13

Noida

58.22

101.77

Allahabad

54.42

95.13

Kochi

58.18

101.69

Meerut

54.42

95.13

Jaipur

57.91

101.22

Dhanbad

54.34

94.99

Surat

57.80

101.04

Vijayawada

54.30

94.91

Vadodara

57.49

100.49

Kozhikode

53.75

93.96

Bhopal

57.41

100.35

Shimla

53.65

93.78

Jamshedpur

57.04

99.69

Guwahati

53.63

93.74

Bhubaneswar

56.95

99.54

Srinagar

53.38

93.31

Goa

56.63

98.98

Puducherry

53.26

93.10

Dehradun

56.47

98.71

Ludhiana

52.93

92.51

Jammu

56.47

98.71

Amritsar

52.37

91.54

Kanpur

56.41

98.60

Asansol

52.01

90.91

Coimbatore

56.38

98.56

Jabalpur

51.99

90.87

enhancing prosperity

3131

India City Competitiveness Report 2011

Supplier Sophistication Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Delhi

92.59

161.54

Bhopal

56.01

97.72

Hyderabad

84.45

147.36

Bhubaneswar

55.72

97.23

Chennai

75.09

131.02

Dehradun

55.72

97.23

Chandigarh

66.56

116.14

Goa

55.72

97.23

Kolkata

66.35

115.76

Jammu

55.72

97.23

Ahmedabad

64.07

111.79

Kanpur

55.64

97.08

Mumbai

63.24

110.35

Madurai

54.59

95.25

Gurgaon

62.88

109.71

Patna

54.49

95.07

Pune

62.72

109.43

Nashik

53.68

93.66

Mysore

62.62

109.26

Agra

52.97

92.42

Bengaluru

61.98

108.14

Allahabad

52.97

92.42

Kochi

61.41

107.16

Meerut

52.97

92.42

Indore

61.13

106.66

Varanasi

52.97

92.42

Jaipur

58.34

101.79

Ranchi

51.98

90.70

Rajkot

58.18

101.51

Kozhikode

50.96

88.92

Surat

58.18

101.51

Dhanbad

50.52

88.15

Noida

58.12

101.40

Jabalpur

49.48

86.33

Lucknow

57.61

100.52

Nagpur

48.98

85.47

Vadodara

57.57

100.45

Amritsar

48.61

84.82

Jamshedpur

56.73

98.99

Ludhiana

48.61

84.82

Faridabad

56.50

98.58

Guwahati

47.86

83.51

Coimbatore

56.34

98.30

Puducherry

47.86

83.51

Thiruvananthapuram

56.30

98.23

Shimla

47.86

83.51

Vijayawada

56.28

98.20

Srinagar

47.86

83.51

Vishakhapatnam

56.28

98.20

Asansol

44.33

77.35

enhancing prosperity

India City Competitiveness Report 2011

Institutional Support Rank

Cities

Score

% of Average

Rank

Cities

Score

% of Average

Kolkata

64.79

113.38

Srinagar

57.07

99.86

Ahmedabad

60.88

106.53

Dehradun

56.97

99.70

Mumbai

60.73

106.28

Jammu

56.97

99.70

Chennai

59.82

104.69

Patna

56.92

99.61

Delhi

59.74

104.54

Kanpur

56.92

99.61

Bengaluru

59.70

104.48

Dhanbad

56.89

99.56

Indore

59.36

103.87

Puducherry

56.86

99.50

Pune

58.94

103.14

Coimbatore

56.41

98.72

Nagpur

58.56

102.48

Varanasi

56.02

98.04

Bhopal

58.35

102.10

Kochi

56.02

98.04

Noida

58.29

102.02

Madurai

55.82

97.69

Gurgaon

57.95

101.41

Hyderabad

55.82

97.69

Mysore

57.95

101.40

Ludhiana

55.80

97.65

Bhubaneswar

57.76

101.08

Kozhikode

55.61

97.33

Nashik

57.65

100.89

Thiruvananthapuram

55.55

97.21

Jaipur

57.63

100.85

Agra

55.39

96.93

Surat

57.55

100.72

Allahabad

55.39

96.93

Chandigarh

57.52

100.66

Lucknow

55.39

96.93

Shimla

57.51

100.65

Meerut

55.39

96.93

Guwahati

57.47

100.57

Faridabad

55.00

96.25

Vadodara

57.44

100.52

Rajkot

55.00

96.25

Ranchi

57.28

100.23

Amritsar

54.88

96.03

Jamshedpur

57.24

100.17

Vishakhapatnam

53.93

94.38

Goa

57.23

100.15

Jabalpur

53.66

93.91

Asansol

57.13

99.97

Vijayawada

52.98

92.72

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India City Competitiveness Report 2011

4. Future of India Cities: Discovering Answers in Questions Cities are dynamic, living organisms that are constantly evolving, changing and moulding themselves into a structural format. So the development Plans & Vision assigned for these cities with their governance roadmaps cannot be static in nature as often believed the case to be. Cities are emerging and strengthening themselves by creating jobs, innovating and luring the external world by possessing outstanding technology. Indian cities have the potential to grow exponentially in the coming years as these provide various business related opportunities to expand further. However the domestic and international organizations from the business world require cityspecific information and details to understand the markets, plan their strategies and to gauge the feasibility of cities for their future operations. Indian cities are viewed as the investment destinations to capture the untouched opportunities as every city has its own selling point. For instance, Delhi is about business and connecting with the Government. Mumbai is linked with the financial sector, Bengaluru and Hyderabad are IT dominated and Pune can be a great education hub. Essentially, every city cannot feature all the characteristics of an ideal city but hold their distinctive features that make them as the â&#x20AC;&#x2DC;growth centersâ&#x20AC;&#x2122; of the future India. Today Indian cities are looked upon as the investment destination to exploit the underlying business opportunities but on the flipside, urban administrations are fighting to cope up with the demand side of the people. Therefore this section of the report presents a detailed overview of the Indian cities on the Microeconomic: Diamond model and their importance for the corporate organizations. It will provide the organizations a comprehensive outlook to make decisions for their expanding business domain as they will be able to look at a city from varied aspects. Moreover this will also support the Government to identify the flaws in the strategies of these fifty cities that eventually calls for Government intervention on state level and especially at municipal level. In short, the Government needs to change their policies and restructure their strategies so as to place the cities as a favorable location to welcome the home and outside investors that will increase the competitive level of various cities.

4.1 The Most Competitive Indian Cities Indian cities are competing for the same business and other related opportunities against each other with different focus. In the India City Competitiveness Report 2011, the metro cities (or â&#x20AC;&#x2DC;metropolises) are still the most competitive with Delhi grabbing the first rank. All these with the other two growing urban cities that is, Bengaluru and Hyderabad have distinct areas of strength and weakness. These cities are the major hubs for capital generation and are the biggest driver for turning a simple equation into an urban opportunity. Moreover these act as a successful city models for the other developing cities. A birds-eye view of the 2011 rankings that depicts the most competitive cities of India:

enhancing prosperity

India City Competitiveness Report 2011

Rank

City

Distinct Features Excellent physical infrastructure, Integrated Communication network across the city, maximum

Delhi

human capacity with highest population and utmost supplier sophistication, as well as a large market with spending power Financial capital of India holding high level of innovation and providing a wide base for business

Mumbai

incentives. However it needs to improve its physical structure and focus more on the supplier sophistication domain Raised its competitive position in the 2011 rankings by maintaining its expertise in the field of

Bengaluru

communication and technology with an increase an increase in the income distribution level of the individuals that eventually influence the purchasing power and the money circulation Judged to be as an attractive location for setting up new corporate houses and transforming into

Pune

an education hub. It ranks fairly well in the demand conditions, competition prevailing among the diversified firms Considering it to be a leader of south cities it is positioned high on the context for strategy dimen-

Chennai

sion and possess all the vital requirement for the supplier sophistication and institutional support but lags behind on the factor conditions In spite of its poor infrastructure in terms of transportation facilities, water management etc. it is

Gurgaon

successful in getting a 6th position as it hold a high ranking in the administrative aspect and innovation facet with a strong grip on competition and diversity of the firms parameter and by proving the required business incentives to the corporate It has fallen way down to 7th rank from its previous 5th rank due to the problems on the political

Kolkata

font and thus influencing the business environment. For instance, Singurâ&#x20AC;&#x2122;s TATA Nano case. It has tried to maintain its physical infrastructure according to its human capacity requirements. In addition it is a viable option for the firms that as it has got the highest institutional support.

4.2 Analyzing the City Index The India City Competitiveness Report 2011 is based on the underlying principles of Porterâ&#x20AC;&#x2122;s Microeconomic Diamond Model. So the current rankings can be measured and located under the different dimensions to identify the gaps in their strategies. According to the Indian viewpoint, quality of urban life is more important with the rapid growth of the cities so now it is required to look upon these cities from the aspect of demand conditions, factor conditions, context for strategy and related industry. As exhibited by the current rankings in the index, metro cities are getting a strong competition by the less prominent metro cities. However it is observed that these cities are greatly linked to one another. In addition their growth related achievements are highly influenced by their people, Government, firms and the regionâ&#x20AC;&#x2122;s internal resources. The central driving forces behind their massive expansion and rapid urbanization is their large market size, its growing requirements and the search for distinct and innovative routes. Most of these cities are well organized in their physical infrastructure that attracts the masses as well as the business organizations. Apart from some of the cities like Mumbai and Kolkata who are built on an old format and would take time to restructure themselves. These major cities are a home for crores of people who are educated, talented and are increasing the demand and factor conditions of their respective cities. In addition with the rising GDP their income rises and so their spending power. Thus inducing the giant firms to enter the Indian gateways and target their potential customer. The increased spending habits have provided enormous opportunities

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India City Competitiveness Report 2011

to new firms in the field of education, healthcare, telecommunication etc. and created a vast market place to deal with one another. As a result India has workstations of all major and world-renowned firms that are finding immense potential in India’s low-income, middle-income and high-income groups. There increasing expenditure also results in the generation of more tax that is eventually used for the development of the city. Therefore a growth cycle of improvement is formed that generates affluence. However the firms should also hold some criterion like getting audited once in a year, getting the technology licensed, competing in a health milieu, compiled by all the government rules and regulations etc. so as to strengthen their image in the respective city and enhance the prosperity of the city. As a corollary, city and its supplier provide them the required benefits to cope up with the changing environment. The scenario is not the same with all the cities. Cities that holds a low overall competitiveness level show the lack of proper management by Government and its people. These cities require correct strategies, as there resources are not utilized in an efficient manner. They don’t have to be a replica of some other city but should fill their gaps and build on their expert areas. Moreover in the development of mega cities and in the conversion of low competitiveness cities into high competitiveness cities it is required to incorporate all the segments of the society while planning their infrastructure strategies or deriving the economic benefits.

4.3 Tapping the Next Frontier: Potential for Tier-2 and Tier-3 Cities The Tier II and Tier III cities in India like Bhopal, Kochi, Surat are coming out of their age old shells and are about to regain their ancient glory. They are preparing themselves to compete with the metro cities. These cities hold tremendous potential for firms in the Outsourcing, IT Offshoring, Retail and Real Estate Development sectors and are a center of attraction for the business firms due to their untapped markets and wide resources. Big names from IT and retail have already drawn up plans to start operating in these Tier II and Tier III cities. It has been anticipated that since the metros or the Tier-I cities will not be able to serve the diverse and widespread population so most of the development will happen in these cities, which is really where the teeming Indian middle class resides. The development can be in terms of education wherein several cities are home to some good quality universities that produce the thousands of graduates and engineers or in terms of employment – with outsourcing, IT and retail gunning for these smaller cities in search of space, customers or employees. The Government is also taking an active interest and actions to promote these cities as the future investment options to extend the choices beyond the Tier-I cities and for the uniform development of the country. Apparently the companies are entering their domain as they foresee the required potential. Cities like Gurgaon, Ahmedabad and Jaipur are successful in making a place for themselves in the top ten contenders and are closely followed by Noida in the competitiveness index. They are developing on the various dimensions across the four pillars to reach the top five slots. For instance, Noida has the best administrative dimensions among all, indicating the improved governance and a stabilized crime rate as compared to the past records. In addition it provides numerous business incentives to the corporate organizations and is ranked 3rd in the related and supporting industry pillar. Similarly, Gurgaon holds a large number of business hubs thus influencing its financial, communication and income distribution dimension. It also possesses a good administrative setup that indirectly impacts the other associated entities. The band of 11-20 India’s city competitiveness is majorly covered by the Tier-II and Tier-III cities like Surat, Nagpur, Kochi, Chandigarh, Vadodara, Thiruvananthapuram, Nashik, Rajkot and Indore that clearly illustrates that these cities are going to be the next growth centers in India. Moreover the arrival of consumer brands is helping fulfill the aspirations of a burgeoning affluent class in these cities, and has also opened new markets for entrepreneurs to explore. These cities are preferred by the business entities because they offer cheaper rents with an employable stream of educated and dedicated workforce. Also, many Indian states are offering incentives to investors who are willing to relocate to these cities. Thus increasing the future prospects of these cities. Hence the economic growth of

enhancing prosperity

India City Competitiveness Report 2011

India is not only dependent on the major metropolises but is equally impacted by these cities so as to have a sustainable growth in the long run.

4.4 Measuring the Competitiveness Level The different pillars and their related dimensions exhibit that the competitiveness index of each city when compared with their previous year’s index then it either shows an incline or decline. When the world is developing at the speed of light then it becomes even more important for the Indian cities to have a strong competition among themselves and can compete with the world-renowned cities. Therefore it is the time to evaluate and assess their competitiveness level with respect to: •

Their previous and current position

•

Improvement that is required to match the world cities criterion

•

Utilization of its resources to reap the maximum benefits

•

The role played by all the associated entities etc.

The answers to these questions will guide the cities on the right trajectory and then accordingly they can plan their short term and long-term objectives. They should plan their actions in a strategic manner that is suitable for their city growth. Moreover, apart from the metro cities, all the remaining cities are not very well aligned with the major dimensions but they have their own competitive edge. This differentiating feature of each city is their strength and will pave a way to move forward.

4.5 A Closer Look at the Top 2 Box 3: DELHI Delhi is a National Capital and the seat of administrative power. It is the center of economic and political activities and by attaining the number one position on the Competitive Index 2011 again it has revealed that it is worth of the position and can completely justify the title of the most Competitive Indian city. It is fairly placed at the number one position as it is trying to grow according to the increasing population base so that it can serve and satisfy them. As reflected from its overall position, it has been ranked number one in all the four pillars. However the rise in migrating population is acting as a challenge for it because now they are also a part of the city and require the focus of Government towards them. Mapping the swot analysis on the four pillars will provide a good understanding behind the number one position of Delhi on the competitive index

Factor Conditions: As illustrated in the opportunity section, Delhi has a large number of highly educated people who are inclined towards starting a business of their own or work as skilled workers. In addition the communication facilities and the various modes are great in Delhi as evident by the revolution that Delhi metro brought in the city. This may be reason that it has ranked as number one in three sub-indices out of the six heads that is, physical, communication and human capacity.

Demand Conditions: It comprise of demographics and income distribution and spending pattern. It is surprising to note that Delhi has overtaken Mumbai in the category of population and is the most populous city of the country. Its base of urban population is larger than Mumbai. It has declined on the income distribution and spending pattern because the upcoming cities have surpassed it in this category. However it has maintained its position by attaining number one position in this slot.

Context for Strategy and Firm Rivalry: Delhi ranks number one in the competition intensity and diversity of firms parameter

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India City Competitiveness Report 2011

SWOT Analysis Strength

Weakness

Location and regional linkages (seat of all political power in the

Lack of land management (need of more parking space and

country, easily accessible from other Mega cities of the country)

dumping sites)

Trade and commerce (well connected to regional supply chains

Increase in the number of environment related hazards (de-

and is gaining importance as a center of retail trade)

graded air quality, lack of drainage and sewerage facilities)

Better infrastructure (roads and transportation), most of the population is falls in the educated category, well equipped with

Haphazard growth of the city

all business related facilities Threat High population growth can lead to further pressure on the infrastructure sector in the future Overlapping roles of state and central government have led to a non functional executive system of the city

Opportunity Economic competitiveness (due to good connectivity can develop as a nodal center linked with other economically vibrant cities, highly educated and entrepreneurial population) State Urban reforms (initiating reforms in urban governance through implementation of various governance models such as E-governance etc.)

Less focus towards the natural resources (like ground water etc.) illustrating that it is a favorable location for operating various businesses as various companies are operating in and around the city. Thus achieving the first slot in this pillar. However it should formulate a strategy to bridge the gap between where the city is and where it wishes to go such that it can meet the standards of foreign cities.

Related and Supporting Industry: The various forms of sophistication provided to supplier are so many that it again attained first position in this category. For instance, it has the maximum number (that is 5) of council for scientific and industrial research laboratories in the country and accounts to a score of about 93%, which is very high as compared to the next city that lags behind by nearly 9%. However its report in the institutional support is not fairly good as it takes more time in exporting or importing a document than the countryâ&#x20AC;&#x2122;s average. Although then too it is placed at number one position.

Moving Up the Diamond: Delhi has been able to attain its position because it is consistently trying and putting in effort to bring the required change in spite of the scams etc. In addition, its strengths and its opportunities cover its weak points thus pushing it to excel. It also extracts an equal amount of benefit from its nearby emerging cities such as Gurgaon, NOIDA in a way they seek advantage by being in the NCR (National Capital Region).

MUMBAI The one Indian city that exemplifies the growth-poverty conundrum is Mumbai - the city of lore where a little known petrol station attendant with an entrepreneurial spirit built a multi-billion dollar company whose many subsidiaries now drive the Indian stock market. Mumbai, the burgeoning megapolis of India is a city in transition. It is the city of hope for the hundreds and thousands who flock to it every day in search of jobs and to pursue there dreams making Mumbai as one of the most densely populated cities in the world. It is a city whose crumbling infrastructure is still sustaining rapid economic and cultural change. Out of the four major pillars it has been ranked on 2nd position in the three pillars namely, factor conditions, demand conditions, context for firm strategy and rivalry. Thus putting Mumbai on Rank 2 in the Competitive Index 2011.

enhancing prosperity

India City Competitiveness Report 2011

SWOT Analysis Strength Major financial center of the country High quality but low cost human capital

Weakness Lack of proper housing and resources to meet the needs of the people in the city Appropriate urban governance

A large hinterland market

Threat

Opportunity

High impact of the political environment

Strong securities markets

Can emerge as International financial center

Technologically advanced trading platforms

Can not expand further

Factor Conditions: No other city is comparable to Mumbai in the sub-index of financial as it is a place for the country with two vital stock exchanges that is, BSE and NSE and manages the wealth of the country. Interestingly it obtained a number one slot in the innovation sub-index too, which ranked it overall at 2nd position in this particular pillar. However it scored a low score on the administrative block thus increasing the already persistent challenge of governance in the city.

Demand Conditions: It should be noted that Delhi has surpassed Mumbai in terms of population and positioning the city at the second slot. However till date Mumbai is considered the most overburden city but the figures revealed by the Census 2011 has proven this fact incorrect. Furthermore it ranks 5th on the income distribution & spending pattern. Thus bringing the overall rank of this pillar as 2nd.

Context for Strategy and Firm Rivalry: Mumbai is a home for many industries; almost every industry across the country has its one office in Mumbai thus attracting the location for business purposes. However favoring this trend Mumbai even scores first position in the sub-index of business incentives. It has business locations like SEEPZ, BKC (Bandra-Kurla Complex) etc. that are situated in suitable location and satisfies the requirements of the corporate people. Therefore Mumbai ranks 2nd in this pillar.

Related and Supporting Industry: Mumbai lags behind in the overall index because it does not perform substantially well in this pillar and ranks 6th in Related and Supporting Industry. It is ranked at 7th position in the supplier sophistication index and 3rd in the institutional support. It does not have any laboratory under the council for scientific and industrial research, which can be regarded as an important component in the supplier sophistication.

Moving up the Diamond: Even after possessing some features of a world-class city it is unable to step forward and develop as the roots of its weak areas are still deeply penetrated. It is true that Mumbai has several constraints in terms of the land area, population, poverty etc. but the solution to Mumbaiâ&#x20AC;&#x2122;s myriad problems needs to be found in effective governance and futuristic urban planning.

Emergence of the South Indian Cities In the India City Competitiveness Report 2011 some South Indian cities are outshining and have surpassed the prominent North Indian cities. Thus showcasing a wide developmental gap between the two parts. Cities such as, Kochi, Thiruvananthapuram, Kozhikode, Mysore, Vishakhapatnam and Vijayawada have witnessed a remarkable improvement in their overall competitiveness rankings 2011 and are placed at 14th, 17th, 21st, 24th, 26th and 31st rank respectively. All these cities score high on the two pillars namely demand conditions and context for firm strategy and rivalry thus outshining at their respective positions in comparison to their last yearâ&#x20AC;&#x2122;s rankings. These cities are rapidly progressing to showcase their untapped areas to the outer world and grab the new opportunities.

enhancing prosperity

3939

Agra

Ahmedabad

Allahabad

Amritsar

Asansol

Bengaluru

Bhopal

Bhubaneswar

Chandigarh

Chennai

Coimbatore

Dehradun

Delhi

Dhanbad

Faridabad

Goa

Gurgaon

Guwahati

Hyderabad

Indore

Jabalpur

Jaipur

Jammu

Jamshedpur

Kanpur

Cities

enhancing prosperity

56.22

49.74

55.59

57.68

55.05

60.93

63.83

58.30

64.23

56.92

48.90

48.79

72.19

53.45

58.32

62.48

61.24

55.86

59.64

63.49

54.84

53.29

52.44

58.35

54.51

Factor Conditions

370

119

150

428

143

274

874

182

211

139

2332

165

267

1115

252

225

283

1419

223

177

687

200

No. of Bank Br

5438.06

3484.89

6327.28

4879.67

3478.26

5884.48

28063.42

16378.68

20395.82

4155.80

7010.74

2346.55

35640.94

11238.93

5254.31

30541.41

30882.18

12169.57

12079.92

21424.44

1448.33

4898.25

1861.30

9416.22

2557.07

Aggregate Deposit Amount (Rs. Crores)

5. Crucial City Indicators

0.98

9.87

4.55

9.54

10.24

7.73

34.21

1.77

33.06

1.77

9.87

5.73

64.79

5.86

29.82

37.34

10.24

9.98

2.68

3.06

0.98

2.42

0.98

% of forests to total geographic area (sq. km)

55.34

57.96

36.11

33.676

33.62

43.26

40.6

43.31

40.6

35.076

33.25

33.01

61.36

32.995

40.49

53.63

73.48

38.97

32.497

53.64

24.67

20.93

32.771

51.29

39.5

% of Healthy competition prevailing on the basis of sanitation

11.89

11.00

2.31

9.54

6.34

20.39

3.97

6.81

11.00

6.81

11.00

265.00

11.00

15.04

111.83

11.00

5.83

6.34

11.78

16.28

10.73

12.47

14.44

11.89

Number of GSM users (/ lakh)

143

153

444

256

Murder Incidence

109

102

256

295

162

491

187

251

Molestation Incidence

22.5

8.0

15.00

9.00

Infant Mortality Rate

40 India City Competitiveness Report 2011

Kochi

Kolkata

Kozhikode

Lucknow

Ludhiana

Madurai

Meerut

Mumbai

Mysore

Nagpur

Nashik

Noida

Patna

Puducherry

Pune

Rajkot

Ranchi

Shimla

Srinagar

Surat

Thiruvananthapuram

Vadodara

Varanasi

Vijayawada

Vishakhapatnam

Cities

56.77

55.55

53.08

56.83

57.41

56.29

56.36

56.76

50.75

56.39

60.89

55.49

52.96

60.78

53.11

57.54

56.84

70.28

52.74

54.71

54.66

55.42

55.84

62.96

57.97

Factor Conditions

228

185

196

283

263

264

122

166

142

496

271

251

124

253

191

1955

164

170

310

506

133

1209

331

No. of Bank Br

3687.40

1597.26

3326.28

6545.41

5988.90

2781.27

7358.14

9530.55

4540.14

2670.42

7078.00

3763.07

5463.03

18261.03

1376.65

5196.89

3178.90

107979.00

2438.07

2772.74

4982.97

11539.83

1651.70

34986.68

7953.08

Aggregate Deposit Amount (Rs. Crores)

5. Crucial City Indicators

7.73

0.98

2.42

9.66

2.42

4.55

66.52

9.87

2.42

5.03

2.71

6.87

0.98

5.03

9.98

5.03

0.98

5.86

3.06

0.98

9.66

6.69

9.66

% of forests to total geographic area (sq. km)

40.5

49.06

27.084

33.62

41.71

69.08

17.32

29.53

39.25

56.12

42.73

43.19

381.64

51.9

40.12

33.197

50.65

53.92

44.15

40.16

35.64

48.52

37.97

48.97

36.11

% of Healthy competition prevailing on the basis of sanitation

20.39

12.47

14.44

18.61

14.44

2.31

4.52

11.00

14.44

12.82

11.00

11.29

11.89

12.82

11.78

219.45

11.89

15.04

10.73

12.47

18.61

145.14

18.61

Number of GSM users (/ lakh)

101

202

119

137

217

Murder Incidence

177

175

165

100

147

400

147

201

Molestation Incidence

22.5

7.75

Infant Mortality Rate

India City Competitiveness Report 2011

enhancing prosperity

4141

Agra

Ahmedabad

Allahabad

Amritsar

Asansol

Bengaluru

Bhopal

Bhubaneswar

Chandigarh

Chennai

Coimbatore

Dehradun

Delhi

Dhanbad

Faridabad

Goa

Gurgaon

Guwahati

Hyderabad

Indore

Jabalpur

Jaipur

Jammu

Cities

enhancing prosperity

0.06

0.03

0.05

0.04

0.06

0.03

0.02

0.04

0.03

0.04

0.03

0.02

0.03

0.02

0.03

0.02

Te a c h e r Student ratio in government schools

58.01

52.66

60.02

59.74

67.27

66.77

81.84

66.77

56.21

80.93

70.7

73.86

81.38

64.36

60.02

68.13

71.16

71.34

59.26

70.73

59.26

Literates Females

52.06

64.85

51.31

52.87

57.05

50.11

56.77

55.83

52.38

51.69

83.01

53.03

51.42

58.63

55.63

51.14

51.64

72.00

55.52

56.07

59.34

63.76

57.14

Demand Conditions

5. Crucial City Indicators

815727

349787

1278448

1700483

2064359

604789

817274

817761

961532

1405847

8976410

893222

1735362

2357633

580282

1166949

1239378

5025498

1494689

1322088

3133479

3787050

2356104

Population: Male

710679

6314184

1182266

1571852

1945879

655630

696811

639962

837422

1276815

7776825

805338

1737216

2323454

474404

1079392

1128767

4563412

1358259

1168803

2826319

3421150

2024689

Population: Female

170

188

193

177

169

162

179

198

155

203

169

170

171

163

180

197

198

188

203

201

195

177

195

Consumer Price Index (General) for Industrial Workers

28.33

30.59

23.76

45.01

24.20

67.76

119.27

67.76

24.87

101.38

50.67

54.14

108.49

30.12

23.76

47.60

35.51

54.63

20.34

55.14

20.34

Per capita income (in 000)

7.9

Ownership of Consumer Durable- Home Theatre (Upper Middle & Rich) (%)

42 India City Competitiveness Report 2011

Kozhikode

Lucknow

Ludhiana

Madurai

Meerut

Mumbai

Mysore

Nagpur

Nashik

Noida

Patna

Puducherry

Pune

Rajkot

Ranchi

Shimla

Srinagar

Surat Thiruvananthapu-

Varanasi

Vijayawada

ram Vadodara

Kolkata

Kochi

Cities

0.06

0.02

0.04

0.03

0.12

0.08

0.02

0.03

0.02

0.06

0.02

0.05

0.04

0.07

0.03

0.02

0.06

0.03

0.06

Te a c h e r Student ratio in government schools

59.74

59.26

70.73

91.98

70.73

58.01

76.6

56.21

70.73

75.48

81.22

53.33

75.48

46.48

75.48

68.13

75.48

59.26

73.86

71.34

59.26

91.98

71.16

91.98

Literates Females

57.92

53.66

57.25

57.00

62.81

51.71

51.07

52.53

57.82

71.40

51.37

59.10

50.50

63.41

59.17

52.69

78.49

55.14

52.62

56.99

58.39

55.86

57.26

56.62

Demand Conditions

5. Crucial City Indicators

2268312

1928641

2150229

1584200

3399742

675667

424486

1493376

1975131

4936362

610485

3051117

904505

3164261

2388558

1511206

6736815

1829192

1528308

1866203

2407897

1473028

2362662

1617602

Population: Male

2260697

1753553

2007339

1723084

2679489

594084

388898

1418646

1824639

4490597

633979

2721687

770209

2944791

2264613

1483538

5741632

1618213

1512730

1621679

2180558

1616515

2124017

1662258

Population: Female

183

187

173

171

166

170

214

184

194

177

169

279

155

210

182

183

187

168

178

190

179

178

158

Consumer Price Index (General) for Industrial Workers

45.01

20.34

55.14

52.01

55.14

28.33

46.02

55.14

0.00

62.45

79.31

14.63

20.34

62.45

47.60

62.45

20.34

54.14

54.63

20.34

52.01

35.51

52.01

Per capita income (in 000)

5.3

9.1

9.4

8.8

Ownership of Consumer Durable- Home Theatre (Upper Middle & Rich) (%)

India City Competitiveness Report 2011

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Agra

Ahmedabad

Allahabad

Amritsar

Asansol

Bengaluru

Bhopal

Bhubaneswar

Chandigarh

Chennai

Coimbatore

Dehradun

Delhi

Dhanbad

Faridabad

Goa

Gurgaon

Guwahati

Hyderabad

Indore

Jabalpur

Jaipur

Jammu

Jamshedpur

Kanpur

Cities

enhancing prosperity

54.32

49.84

50.15

56.91

52.09

54.46

60.20

52.02

70.07

51.81

50.76

49.82

84.44

51.73

61.55

66.13

53.62

55.50

52.91

62.55

50.61

55.88

51.00

58.97

53.69

Context for Firm Strategy & Rivalry

0.7

0.5

2.7

0.7

0.3

3.55

21.8

0.7

21.8

0.7

0.8

9.2

1.7

0.3

0.2

10.1

0.1

0.7

2.1

0.1

Share of total passenger traffic

600

389

223

Cargo handled

5. Crucial City Indicators

56.41

57.04

56.47

57.91

51.99

60.06

67.28

53.63

59.92

56.63

55.60

54.34

72.88

56.47

56.38

65.93

61.14

56.95

57.41

60.61

52.01

52.37

54.42

62.15

54.42

Related & Supporting Industry

ExportTime required (in days)

9.7

9.85

14.2

10.33

9.9

7.7

11.63

14.2

11.63

14.2

8.77

14.2

7.35

9.9

10.58

14.2

8.62

9.7

12.95

9.7

Enforcing Contracts- Time ( 100 days )

ImportTime ( days )

52.5

51.5

70.1

45.5

43.8

41.6

40.5

50.7

70.1

50.7

55.7

51.1

70.1

40.3

70.1

43.8

64.7

70.1

52.5

46.3

52.5

Starting a business-Cost ( % of per capita income )

44 India City Competitiveness Report 2011

Kozhikode

Lucknow

Ludhiana

Madurai

Meerut

Mumbai

Mysore

Nagpur

Nashik

Noida

Patna

Puducherry

Pune

Rajkot

Ranchi

Shimla

Srinagar

Surat Thiruvananthapu-

Varanasi

Vijayawada

Vishakhapatnam

ram Vadodara

Kolkata

Kochi

Cities

51.87

52.12

54.61

58.31

59.09

57.78

49.98

52.53

49.79

57.78

62.43

55.63

50.33

71.51

54.85

62.62

53.74

79.74

54.07

60.87

56.34

53.87

61.80

64.22

60.24

Context for Firm Strategy & Rivalry

0.2

0.7

0.6

0.7

0.5

0.7

0.2

0.6

0.7

0.4

21.8

0.7

0.6

0.7

30.3

0.3

0.7

0.5

0.7

15.1

1.1

Share of total passenger traffic

600

670

130

Cargo handled

5. Crucial City Indicators

54.87

54.30

54.80

57.49

55.85

57.80

53.38

53.65

55.16

56.27

60.45

53.26

55.95

58.22

56.06

54.73

59.81

61.74

54.42

55.33

52.93

56.28

53.75

65.41

58.18

Related & Supporting Industry

ExportTime required (in days)

7.7

9.7

14.2

9.85

14.2

7.92

9.7

14.2

9.7

8.77

8.62

9.7

14.2

11.83

7.05

Enforcing Contracts- Time ( 100 days )

ImportTime ( days )

41.6

52.5

70.1

50.1

70.1

51.5

50.1

70.9

70.1

38.6

52.5

70.1

70.9

70.1

70.9

52.5

40.3

52.5

70.1

39.6

47.2

Starting a business-Cost ( % of per capita income )

India City Competitiveness Report 2011

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India City Competitiveness Report 2011

6. Enhancing City Competitiveness When a developing world is compared with a developed world then the comparison is generally based on the competitiveness of its cities. It is believed that in the developing world the economic, social and physical environment of some large cities highly influence their overall development and prosperity. Moreover, the economic liberalization taking place in many of the developing countries, including India has increased the importance of the urban areas and hence the cities. India is a land of endless opportunities and its cities are an important component of its success because each Indian city has an area of influence and control over the whole country. Cities have always competed but in the long run, they are merely looked upon as an instrument of generating revenues and carrying trade operations. The concept associated with the cities growth have to widen because it has been predicted that Indian cities could generate 70% of net new employment, produce more than 70% of Indian GDP and quadruple the national per capita income. The increasing urbanization is only focusing on constructing buildings and shopping complexes, individuals getting equipped with latest technologies, focusing on their standard of living and searching for better sources of income. However, the overall development of cities is not much looked upon except few cases that are eventually hampering the nations’ growth. The success of few cities of India cannot be considered as a huge success because most of the cities in India are filled from new prospects. So now we are aware about the most competitive cities of India and the areas where they are deficient and where they outshine. There is a crucial requisite for the country and its people to look upon the cities that are lagging behind and make the competitive Indian cities comparable to the cities of other countries. There should be a strategy in action for enhancing the welfare of the entities that are already operating and existing within the city’s boundaries and others that are likely to be attracted to the city by its success. It will then be possible to improve the competitiveness of India as a whole.

6.1 The Role of Governance At the level of the National Government, city “competitiveness” is associated with the relative economic strength, a fundamental constituent in national economic competitiveness. Therefore the rating of city competitiveness provides the footsteps to formulate an appropriate national urban policy. Therefore it is expected from the Government to take considerable and necessary actions at the State and National level.

Responsibility of Local Governments: Local Government usually has a key role in the conception and management of milieu that comprises of envisioning a city, setting its priorities, strategizing to achieve set objectives, organizing public consultations, promoting civil society participation, budgeting for expenditures, raising resources, monitoring works, collecting taxes and fees. It is both an essential manager and a political leader of the city. So it has the liability to immensely contribute to the competitive strength of various entities in the city such as its firms, its citizens etc. thereby enhancing and developing the required facilities for its inhabitants. Therefore an active participation of the State Government is required to seek benefits from the Central Government and bring in the necessitated policy changes.

Duty of Common People: Every individual wants a cleaner, greener and well-equipped place to live in but at a cost of doing no work from their side.

enhancing prosperity

India City Competitiveness Report 2011

It is true that sustainable municipal efficiency needs capacity not merely within the municipal ranks of elected representatives and officials, but also outside among civil society stakeholders. The common people have equal responsibility towards the city in which they are residing. The Central and State Government cannot be blamed every time for the low ratings of the city because the city is influenced by the way in which the resources of the region are utilized.

Importance of Policy: Local decision makers sometimes have limited scope in overcoming the shortfall of the city or region, however a good policy can improve the state. For example fiscal policies can improve the delivery of local infrastructure services such as water supply and sanitation. Policies should cover all the domains equally because every city specializes in different field. It has been noticed that over a period of time number of policies pertaining to different sectors like education, environment, medical help have been passed by the government but these will not benefit the people until strict and considerable actions are taken towards it.

Improved Governance Required The loopholes in the governance system can be resolved by a) Building credibility of Local Government by improving the administrative processes b) Putting efforts in the critical areas whose results are easily visible and that influence the life of most residents c) Dissemination and networking of Local Governments d) State and National Governments may not always support the initiation of changes, but will yield only when citizen support is received e) Responsive administration for citizen grievances is essential

6.2 Key Areas of Focus

Dealing with Urbanization: Urban India faces daunting challenges. Cities must cope with greater numbers, plan to provide services to people, find resources to meet them and maintain and augment the infrastructure and preserve environment to retain their competitive edge. Enmeshed in the web of rigid, inflexible working cultures and erosion of all round capacity, they must reengineer themselves to face these enormously complex challenges.

Urbanization of Poverty: The urbanization has greatly influenced the poor people. In the search of employment and livelihood they migrated towards the urban locations and contributed towards the urban poverty. These migrants, however, have become vital contributors to the city economy without whom many of the support systems for city life would collapse. But the influx has fuelled the growth of slums in cities dividing them into formal and informal settlements. The non-recognition of this fact has resulted in several inconsistencies of planned cities and has contributed to enormous strains on urban infrastructure.

Transparency and Civic Engagement: Transparency connotes the conduct of public business in a manner that allows stakeholders to have accessibility in the decision-making process and the ability to effectively influence it. Aspects of life and services that are closest to citizens are transacted and delivered at the local level. Civic engagement has enormous potential to promote transparency, accountability, equity and more mature and wholesome city functioning. Nothing can build consensus and a deepening of true democracy better in a city than civic engagement.

Decentralization: For municipal administration, decentralization is the very essence of good governance. It has the innate ability of promoting democracy by taking decision-making close to the scene of action. It allows direct, larger, continuous and more meaningful participation by citizens in the development process of their area. This heightens a sense of true ownership of the citizens and their commitment to the civic cause.

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Other common areas: The overriding priority in India today is to ensure that the benefits of India’s economic growth should reach all sections of the society. All the cities share some commonalities in context to their requirements such as proper transportation facilities, medical services, administrative processes and issues of cleanliness need to be tackled.

6.3 Success points for the City Competitiveness Cities have tried to move up the Diamond Model and exhibit their competitiveness in various field but the metros of the country are the one difficult to beat. However there are some key distinct fields, which were also looked upon in the last year’s report and should always be focused by the cities as every city is struggling to win the competitiveness index. These are the fields that can bring drastic changes in and around the city.

Talent: Cities magnetize people from outside the region. Every individual wants to work and study in a region where all facilitates are easily accessible. The live example are our metros that attract the people to such an extent that Mumbai got it name as the ‘City of dreams’. Today people are smart and intelligent that can bring about the change required, as they are well equipped, educated and high on their intellectual power. However, appropriate utilization of their talent is required to as to help the cities to grow and motivate the other residents. Each city is full of opportunities having an area of growth and development for every individual.

Innovation: As said, “Necessity is the mother of invention” and today truly we are in need of a change to move up the growth path and certain innovations are required. Moreover, nowadays it is possible to compete only on the basis of innovation as each city has huge pool of information that is not yet taken care of. Cities allow people to develop and experiment by bringing new ideas in terms of product and services. If a city wants to progress then it has to construct the required environment.

Distinctiveness: Each city is different from one another and possess its own special characteristics that provides a unique identity and strength to compete upon. Therefore cities should plan their strategies depending on their distinctiveness and its people requirements. It is unwise to follow someone else’s model of success. It is only possible if each city will look beyond it’s past and have the zeal to obtain its competitive advantage.

Sustainability: The concept of sustainable cities is an overarching challenge that includes addressing the social, environmental, and the economic sustainability concerns along with the interlinks between them. It is complex and requires a shift from reactive to proactive approaches. It demands adoption of an integrated approach to manage the key services like water, waste and transport and urges the participation of the community at all levels in the decision-making. The need of the hour is sustainable development, as with the increasing population and growing pollution, we can’t ignore the ill effects of planning on the environment. Some States have made the preparation of annual environment status reports mandatory and the Judiciary itself has forced the pace on urban environmental care. Many of these examples have been documented and need to be replicated across cities in the country.

Effective Land Use and Urban Planning: India has characteristically drifted with history in their town planning. From prehistoric Mohenjo Daro, to the imperial city of New Delhi, India has pioneered in town building. However, the scenario is not the same with every city instead goes with the selected cities. On the state level some progress has been made in enacting planning legislation and setting up planning agencies but the results have not all been entirely satisfactory. As cities grow and expand, agricultural lands surrounding them need to be converted to non-agricultural use to meet the demands of housing and commerce. Therefore the land use strategy of each city has to be in a planned manner so as to achieve the goal of prosperity. In addition, to attract investment from the business world and grow further the city needs to build a distinct relationship between its land use and the planning procedure.

enhancing prosperity

India City Competitiveness Report 2011

6.4 Urban Agglomerations, Cities and Regions “The concept of urban agglomeration” was introduced in the 1971 Census to represent “integrated urban area” for assessing the patterns of urbanization towards contiguous areas of cities and towns. As peripheral areas of mega cities like Hyderabad and Bengaluru are experiencing much faster growth of population than their core areas, the concept of urban agglomeration has attained greater relevance. The phenomenon of is also evident in some of the smaller metropolitan cities, e.g. Surat and Indore. The Committee has taken urban agglomeration as the unit for estimating urban infrastructure investment requirements. It is believed that it will address the challenges of not only pricing services but also ensuring the delivery of services and protection of the environment in the Indian cities. However to make the concept accountable it requires citizen participation to create ‘citizen owned, citizen paid and citizen managed’ cities. It has been estimated that nearly 35 cities of India with a population of over million and above is proving as beneficial markets. They are placed in the category of Tier 1 cities or metros. Though, India’s two largest metropolises - Delhi and Mumbai will always be the country’s biggest markets inmost of the areas. The remaining top eight cities will be the preferable locations for upper-income global consumers across the country. These cities need to keep on growing and enhancing their overall strategy to remain gain the competitive edge.

6.5 Future of Indian Cities Einstein has astutely noted that the significant problems we face cannot be solved at the same level of thinking we were at when we created them. However, translating the challenges into opportunities requires a different way of thinking. Similar is the case with Indian cities that are facing difficulties under the competitiveness index because “Systematic problems cannot be solved by cosmetic solutions.” Indian cities even after being well equipped with all amenities are not much competitive because they lack clarity in their strategy and hence lack in some field or the other. For example, Delhi has a good transportation network but needs to put a full stop on its everincreasing crime rate so as to remain in the competition with other cities. Otherwise, some unexpected cities will hit the competitive index and surpass these overruling and high resource cities. The underlying challenge that Indian cities are facing is not the dearth of resources but the lack of proper vision to excel and compete with other cities. The ranking clearly defines the areas of improvement for the cities but on the basis of analysis and the current scenario, there is still scope for change. Therefore following recommendations can be suggested to touch the required prosperity level and improve the competitiveness ground.

Design a Vision and Strategy: The first step for any planning is the development of a vision, that is, where they want to reach and then the plan of action is designed. The Government and people of every city are well aware about the actual picture of their state that truly depicts the real situation. Therefore now is the time to reflect a vision that meets the requirements of the city and act on it practically through their strategy. It should be periodically re-evaluated and re-aligned to enhance competitiveness.

Recognize the Differentiating Features: The addition of the two metropolises in the list of existing four has proven that the cities hold different expertise. This differentiation provides a competitive edge to the cities. Therefore efforts should be made to identify their competitive characteristics and act upon them.

Explore the City: Sometimes even the Government is left unaware about the hidden opportunities of a city, which if explored will prove to be of great advantage. These opportunities can enhance or support their prevailing competitive proficiencies.

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Promote the City: To create prospects for a city, it is necessary to market it in the outside world. When people know about a good location, investment or business opportunity then they themselves will come and grab it. Therefore individual cities should have a good communication platform in terms of internet (creating their own website), television (showing the events being held or special festivities), newspaper (reporting the government related news or job opening) etc. It will not only help the city to develop but will grow affluence among its people.

Make Citizens an Integral Part: In every city, their citizens are the main stakeholders that are impacted by each and every small action of the Government. So these stakeholders should be made a part of the crucial decision undertaken.

Strictly Follow Rules and Regulation: Every individual compare their city with world-class cities and except the same in their region. However, people are a bit reluctant to follow the rules and act upon it. So Governments need to take appropriate actions to overcome this problem.

Act According to the Requirements: The cities need to act as per their requirements and not follow others plan or actions blindly because it can worsen the situation.

Implementation of New Concepts: Indian cities should quickly fill their competitive gap because cities in other parts of the world have taken two steps forward. They are developing and implementing the concept of smarter cities wherein they will use automation intelligently and intensely. These smarter cities will incorporate these technologies in all spheres of life like healthcare, disaster management, security, transport and energy. Some cities have already proven this concept and are building it as their biggest business opportunity.

enhancing prosperity

References 1. Airport Authority of India 2. Census of India 2011 3. Central Electricity Authority, Ministry of Power 4. Central Statistical Organization (CSO) 5. City Skyline 6. CSO, Compendium of Environment & Statistic 7. Department of Scientific and Industrial Research 8. District Information Secondary Education 9. District Report Cards 2007-08 10. Doing Business in India 11. India Air Transport Statistics 2007 - 08, 2008 - 09 12. Indian hotel Industry survey 2009 - 10 13. India State of forest report 2009 14. Institute of public Enterprise Database 15. Marketing Whitebook 2010 - 11 16. Ministry of Drinking Water & Sanitation 17. Ministry of Labour & Employment 18. Ministry of Road Transport and Highway 19. Ministry of Statistics and Programme Implementation 20. National Crime Bureau 21. National Highway Authority of India 22. Nielsen Upper Middle & Rich Survey - 2009 23. Planning Commission of India 24. Press Information Bureau 25. Reserve Bank of India 26. Road transport year book 27. Technology Development Board 28. Urban Statistic Handbook 2008

For further information, visit www.competitiveness.in or write to info@competitiveness.in

Institute for Competitiveness Institute for Competitiveness, India is the Indian knot in the global network of the Institute for Strategy and Competitiveness at Harvard Business School. Institute for Competitiveness, India is an international initiative centred in India, dedicated to enlarging and purposeful disseminating of the body of research and knowledge on competition and strategy, as pioneered over the last 25 years by Professor Michael Porter of the Institute for Strategy and Competitiveness at Harvard Business School. Institute for Competitiveness, India conducts and supports indigenous research, offers academic and executive courses, and provides advisory services to the Corporate and the Governments. The institute studies competition and its implications for company strategy; the competitiveness of nations, regions & cities and thus generate guidelines for businesses and those in governance; and suggests and provides solutions for socio-economic problems.

Institute for Competitiveness U 24/8, DLF Phase 3, Gurgaon 122 002 Haryana, India T +91 124 4376676 General queries: info@competitiveness.in For further information, visit www.competitiveness.in

For further information, visit www.competitiveness.in or write to info@competitiveness.in