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Developing Cities

In: Business and Management

Submitted By vijayvijay
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India's 10 fastest growing cities

A lot has been said about India 's robust economic growth with economists predicting a bright future for the country. But few know of the booming Indian cities that are adding to the nation's growth. So which are the country's fastest growing cities? Read on to find out?

1. SURAT

Growth rate: 11.5%

Surat is Gujarat 's second largest city with a population of 4 million. It is the fastest growing Indian city in terms of economic prosperity. The city has registered an annualised GDP growth rate of 11.5 per cent over the past seven fiscal years, according to the data compiled by economic research firm Indicus Analytics.

Known for its thriving diamond and textile industry, Surat is situated on the banks of the Tapti river. More than 90 per cent of world's diamonds are cut and polished here.

These two industries have largely contributed to the city's growth as the economic powerhouse of India . Though often affected by floods and earthquakes, the city has always come out on top.

Improved infrastructure has been key to Surat 's rapid rise. A number of elevated roads and flyovers have facilitated the thriving diamond and textile business of the city. The city's Varachcha flyover is claimed to be India 's longest.

Surat with its low unemployment rates, high job rates and one of the highest per capita small business credit is the top destination for jobs and business. It is said that if you want to make money, Surat is the place to be in.

2. BANGALORE

Growth rate: 10.3%

What was knows as the Pensioners' Paradise 10 years back, has grown 10-fold today and a study reveals that the rupee millionaire club in Karnataka's capital is the most crowded in India . Bangalore also boasts of having the largest number of households with an annual income of Rs 10 lakhs (Rs 1 million) or more.

With an estimated population of 6.5 million, Bangalore is one of India 's most populous cities.

How has this city which was more famous for its gardens and laidback lifestyle changed so much in character? The two reasons that come to every Bangalorean' s mind are: the advent of the IT industry, and subsequently the boom in real estate prices.

Unlike other cities in India , Bangalore 's main activity is information technology and information technology-enabled services. Being the leading contributor to India 's IT industry, the city is often referred to as the Silicon Valley of India. Software majors Infosys and Wipro being headquartered in the city, Bangalore contributed 33 per cent of India 's Rs 144,214 crore ($ 32 billion) IT exports in 2006-07.

Businesses involving large corporates that are either multinational companies or Indian firms dealing with or catering to MNCs employ a very large workforce in Bangalore .

And although the city's infrastructure has been unable to keep pace with the rapid growth of the city, Bangalore still remains one of India 's boom towns.

3. AHMEDABAD
Growth rate: 10.1%

The Ahmedabad region, including Gandhinagar, of Gujarat is the largest inland industrial centre in western India and has been an important base of commerce, trade and industry. With a population of 56 lakh (5.6 million) Ahmedabad has seen great prosperity because of its proximity to Surat and its access to the hinterland of Gujarat .

Though dusty roads and bungalows used to dot the city once, Ahmedabad is now witnessing a major construction boom and an increase in population. In recent years, the city has seen a significant rise in information technology and scientific industries.

Apart from these, chemicals and pharmaceutical industries contribute to the state's economic growth, with two of the biggest pharmaceutical companies of India -- Zydus Cadila and Torrent Pharmaceuticals being based here.

Ahmedabad also forms the corporate headquarter of the Nirma group of industries and Adani group. Of late, many foreign companies have set up their units here. Among them, Bosch Rexroth of Germany , Stork and Rollepaal of Netherlands deserve special mention.

4. MUMBAI

Growth rate: 8.5%

The commercial capital of India is one of the world's top ten trade centres. The city contributes 25 per cent of industrial output and 70 per cent of capital transactions to India 's economy.

The city accounts for about 1 per cent of the total population in India but has a per capita income which is almost three times that of India . Mumbai accounts for 14 per cent of India 's income tax collections and 37 per cent of the corporate tax collections in the country.

The city is the berth of significant financial institutions like the Reserve Bank of India , Bombay Stock Exchange and the National Stock Exchange of India.

One of the largest special economic zones in India is being set up in Navi Mumbai, to be spread over an area of around 50 square kilometers.

Numerous corporates and multinational companies have their headquarters in the city that attracts migrants from all over India . The city offers countless employment opportunities and is known for its interesting and high standard of living.

The city, with a population of 19 million, is also known as the Indian seat of entertainment as it is the home to the Hindi film industry, the largest in the world.

Most of the city's inhabitants rely on public transport to commute. Transport systems in Mumbai include the Mumbai suburban railway, also known as the lifeline of Mumbai, BEST buses, taxis and auto rickshaws.

5. NEW DELHI
Growth rate: 8.4%

Though it can't rival Mumbai in terms of contribution to the growth of the Indian economy, the capital of India , is no pushover.

Delhi's, (including its nine districts and adjoining Noida, Ghaziabad , Faridabad and Gurgaon) total GDP stood at Rs 1,60,739 crore (Rs 1,607.39 billion). It contributes 4.94 per cent to all-India GDP.

Connaught Place, one of northern India 's largest financial centres, is located in the heart of Delhi .

Being an important commercial centre in South Asia, Delhi has a per capita income of Rs 53,976, which is more than double the national average.

Delhi's key service industries, backed by as strong and well laid out infrastructure, include IT, telecommunications, hotels, banking, media and tourism. In recent times, Delhi 's manufacturing industry has grown considerably and consumer goods industries have established manufacturing units and headquarters in and around the capital.

Construction, power, telecommunications, health and community services, and real estate form the backbone of Delhi 's economy. The capital's retail industry is one of the fastest growing industries in India .

Public transport in Delhi consists of buses, auto rickshaws, taxis, suburban railways and metro rail.

6. HYDERABAD

Growth rate: 7.8%

Hyderabad, the financial capital of Andhra Pradesh, is also known as the city of pearls. With an estimated population of 7 million, the city is the biggest contributor to Andhra Pradesh's gross domestic product, state tax and excise revenues.

As per 2006 statistics, the per capita income of Andhra Pradesh was at Rs 25,625 (less than Rs 200 of national average). The city, which used to be primarily a service city, is now the seat of many businesses, including trade, transport, commerce, storage, communication and lately IT.

Like Bangalore , Hyderabad too has witnessed a real estate boom in recent times, mainly because of the growth of IT and retail business in the city.

Major pharmaceutical companies like Dr Reddy's Laboratories, Matrix Laboratories, Aurobindo Pharma Limited and Vimta Labs are located here.

Hyderabad has also made considerable progress in the field of bio-technology through initiatives like Genome Valley and Nanotechnology Park .

For the advancement of infrastructure in the city, the Andhra Pradesh government is building a skyscraper business district at Manchirevula.

7. PUNE

Growth rate: 7.4%

The growth of this major industrial city, located roughly 150 km east of Mumbai, has become the topic of discussion these days.

Starting from automobile majors like Tata Motors, DaimlerChrysler, Pune will soon house units of global biggies like General Motors, Volkswagen, Fiat, et cetera. A number of important engineering goods industries like Cummins Engines Co Ltd and Bharat Forge Ltd, electronic goods companies like LG, Whirlpool, food companies like Frito Lay and Coca Cola are also located here.

Of late, Pune's software industry has grown by leaps and bounds. IT parks like Rajiv Gandhi IT Park at Hinjewadi, Magarpatta Cybercity, MIDC Software Technology Park at Talawade, Marisoft IT Park at Kalyani Nagar are seats of technology that the city can boast of.

To meet the demands of this explosive economic growth in Pune, the state of Maharashtra is planning a 1,000 MW power plant to exclusively cater to the need of Pune. MIDC is the lead agency for the project.

8. BARDHAMAN

Growth rate: 6.6%

Situated nearly 100 km north-west of Kolkata, Bardhaman is the headquarter of the district of the same name. With nearly 58 per cent of the population earning their livelihood from agriculture, Bardhaman has earned the name of 'granary of West Bengal '.

Rice grown in the area is supplied to various parts of India and also exported to the neighbouring countries. Though predominantly an agricultural area, Bardhaman also houses a number of industries backed mainly by rich mineral sources available in the area and also imported from the neighbouring Indian states of Bihar, Orissa and Assam .

The industrial belt of Bardhaman has mainly developed embracing the Asansol and Durgapur sub-division. Two most prominent industrial units of the area are Durgapur Steel Plant and Durgapur Alloy Steel Plant.

Other industries that thrive in the area include coal-based industries, chemicals and power plants. The Damodar Valley Project has gone a long away in meeting the irrigational need of the region.

Indian Iron and Steel Industry (IISCO) forms the economic backbone of Asansol area. It is the oldest pig iron and iron casting unit in India . Chittranjan Locomotive, a government undertaking, supplies locomotive parts all over India . Several cottage industries have also developed in the area that support the area's rural economy.

9. KOLKATA
Growth rate: 6.3%

Often termed fondly as the cultural headquarter of India , the capital of West Bengal has a population of 5 million.

Like its many other metropolitan cousins, Kolkata suffered from economic stagnation in post-independence India . However, since 2000, the city has witnessed an economic rejuvenation, thanks to the development of IT industry in Rajarhat in Greater Kolkata. The city's IT sector is growing at 70 per cent yearly -- twice that of the national average.

The city has seen a surge of investments in the housing infrastructure sector. Several new projects have come up in recent times.

Some reputed companies are headquartered here. Of them, Bata India, ITC Limited, Birla Corporation, Domodar Valley Corporation deserve special mention. Opening of the Nathu La in Sikkim as a trade route has put Kolkata in an advantageous position.

Like other metropolitan cities of India , Kolkata continues to struggle with problems like poverty, pollution and traffic congestion.

10. CHENNAI

Growth rate: 6.2%

The capital of Tamil Nadu, the fourth largest metropolitan city in India , has an estimated population of 7.5 million.

The economy of the city is supported by industries like automobile, technology, hardware manufacturing, and healthcare. According to a recent report in The Hindu, economists have predicted that Chennai's per capita income would increase from $468 in 2000 to $1149 in 2015 and $17,366 in 2050.

The city houses India 's major automobile companies and happens to be India 's second-largest exporter of information technology and information- technology- enabled services, behind Bangalore .

Buses, trains, and auto rickshaws are the most common form of transport within the city. To counter traffic congestion, the state government of Tamil Nadu is building a number of flyovers at important intersections.

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