INSUBCONTINENT EXCLUSIVE:
By 2030, its GDP could top $10 trillion
Yet, unusually for such a geographically large and economically vibrant country, India has no states to compare to California in the United
Nor does it have a city on par with New York or Tokyo, both of which boast bigger economies than countries such as Canada and Indonesia,
with a GDP somewhere between $350-400 billion; the city contributes well over half the total
For Maharashtra to become a $1 trillion economy, Mumbai would need to double or triple the size of its economy, on the back of its
preeminent role in service industries, especially finance
That means competing with the likes of Singapore and Shanghai to attract global banks and other world-class financial institutions to the
humid, traffic-choked city.
This poses obvious challenges
has led to the bulk of the local fund-management industry moving to Singapore
Maharashtra will also have to establish a first-rate system for resolving commercial disputes, involving everything from fast-track courts
to international arbitration.
Just as importantly, the chaotic city needs to create an efficient core -- a business district attractive
enough for leading global businesses to want to locate there
Dense urban clusters create agglomeration benefits, one of the very few ways available to improve productivity permanently.
This is, to say
the least, hard to imagine
Headlong growth has worsened congestion, air pollution and the general quality of life
Urban planning is mostly an afterthought
Haphazard development and an explosion in car ownership has made parts of the cramped city virtually unnavigable during rush hour, when the
average commute from the airport to downtown Mumbai can take over 1.5 hours.
However, Mumbai has a unique opportunity to turn its fortunes
allied activities have moved elsewhere
Redevelopment plans so far have focused on infrastructure, including a cruise ship terminal
1 The area could be something much bigger: a means to transform Mumbai into a financial powerhouse on par with Shanghai and Hong
Kong.
Remember that the City of London occupies only 290 hectares
magnet for other businesses; those 40 hectares generate economic output of over $50 billion annually
In Asia, the central business district of Singapore is built on 184 hectares and the Dubai International Financial Centre on 45
walkable cluster offering the high quality of life and green spaces lacking in the rest of the city
Much like Mumbai, the port of London also suffered the impact of containerized traffic in the 1960s
Soon, the entire port closed, leaving nearly 2,000 hectares of land derelict
Redeveloping the area and building Canary Wharf into a global financial center took a coordinated effort from the government, the transport
authority and the property developer.
A dedicated development authority, the London Docklands Development Corporation, provided focus
Priority was placed on creating buildings with large trading floors, a key need for financial services and, in particular, robust public
The latter allowed for density and access to the labor market of greater London, without worsening road congestion
Indeed, there are only 5,000 parking spaces in Canary Wharf and they are rarely full
Strategic communication efforts were designed to withstand changes in political and economic cycles.
The challenge in Mumbai will be greater
Federal structures, overlapping jurisdictions and limited state capacity make change harder
The ghosts of past planning mistakes loom large, while mechanisms to fund infrastructure through the promise of future growth are less
The new zone must operate with a plan that emphasizes jobs and economic dynamism, flexibility and mixed use, rather than one that is static
It will also require greater coordination between government agencies to fully integrate the area with the rest of the city, with dense
transportation networks being key.
Nonetheless, a big idea such as transforming the waterfront into the National Financial Capital Region
could fire up imaginations among bureaucrats, bankers and citizens
are unproductive relative to their location in the heart of big cities
Success in Mumbai could potentially unlock much larger tracts of land across the country, boosting the economy and dramatically improving
the quality of life in Indian cities
has consulted on the masterplan)This column does not necessarily reflect the opinion of economictimes.com, Bloomberg LP and its owners
