Cities to contribute over 70% to GDP by 2030, says study

fe Bureau Posted online: Tuesday, Jun 17, 2014 at 0000 hrs
New Delhi : In the decade spanning 2001-2011, the urban population of India grew annually by 2.8%, adding 9.1 crore people to India’s population in cities, said an Assocham study. This urban population is expected to grow up to 590 million by 2030, accounting for nearly 40% of India’s population as compared with the current 31%. With cities and towns becoming the focal point of sustaining livelihoods, India, in 2030, is expected to have 68 cities, and 6 megacities which will have population in excess of one million and ten million respectively.

Metropolitan cities such as Mumbai and Delhi will be among the five largest cities of the world. Surging growth and employment opportunities in urban cities will prove to be a catalyst for economic growth creating 70% of net new jobs while contributing in excess of 70% to India’s GDP by 2030.

Development of urban infrastructure will continue to play a key role in the structural transformation of India’s economy. An investment outlay of over Rs 70 lakh crore is anticipated mainly in affordable housing, urban roads and transportation for India’s rapid urbanisation over the next 2 decades, which will not only lead to a progressive future but also transform India’s outlook and realize its true potential. This investment outlay will create a huge demand in various core and ancillary sectors causing a multiplier effect through inter-linkages between 254 industries including those in infrastructure, logistics and modern retail. It will help promote social stability and economic equality through all round development of urban economic centres and shall improve synergies between urban and rural centres.