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Thursday, September 25, 2003

Putting Mumbai on the Map

Reuben over at Zoo Station clearly likes Mumbai, but he has trouble sorting out just what it is the city has to do to put itself back on track, apart from investion 10 billion dollars that is.

Bombay is a city I spent a few wonderful years in. Though I did get tired of the city, I continue to be very fond of it, especially when I visit for a few days at a time. So, I used to wonder why the city was allowing the attrition of businesses, especially to the booming southern cities. In fact, a report I once read predicted that the GDP of Bangalore would overtake Bombay by about 2008, though Bangalore has only one-third the population. Jayshree Bajoria reports the results of a new McKinsey study, according to which Bombay needs investments worth at least $10 billion over 10 years to be competetive with other commercial hubs like Shanghai, Dubai and Singapore.

The report strikes an optimistic note by suggesting that Bombay could actually raise that money quite easily, especially if it grew at 8-10% per year. The government has clearly taken note of the report and has announced that it would contribute $1.3 billion to the Mumbai Infrastructure Fund. Amen.

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