Column : Moving away from cities
McKinsey Global Institute contends that cities in India have the potential to generate 70% of the country’s new jobs and GDP over the next 20 years, a process that could drive a four-fold increase in per capita incomes. While promising and greatly desired, such urbanisation imposes unprecedented managerial and policy challenges. However, in spite of the potential for urbanisation in the country, research on spatial location and concentration of economic activity in cities is still at an early stage.
Given the great challenges ahead, we looked backward to describe how the urbanisation process has proceeded (or not) for the Indian manufacturing sector over the 1989-2005 period. We had two goals. The first goal was to trace the trends and depth of India’s manufacturing urbanisation across states and industries. This description can yield important insights for researchers and policymakers going forward.
Our second goal was to examine whether localised education and infrastructure are linked to
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