India to have 69 metro cities by 2025, says McKinsey report

Source:  www.dnaindia.com

India’s average economic growth by 2025 could be in the region of 7.2% annually as the country’s 29 states and seven Union territories are at different stages of demographic and economic evolution, said McKinsey & Company in a recent report.

The report,`India’s economic geography in 2025: states, clusters and cities’ further states rapid urbanisation and associated income growth will propel high-performing states to per capita income levels similar to those of today’s middle-income nations.

By 2025, Maharashtra’s 128 million residents will have a purchasing-power parity similar to that of today’s Brazil while Goa and Chandigarh will mirror that of Spain today, the report said.

How many metros will India have?

Sixty-nine, by 2025. Together with the hinterlands (79 districts), they will account for 54% of the country’s incremental GDP from 2012 to 2025 and for 50% of its total income in the terminal year. In short, focusing on these 79 districts would provide companies with access to a market potential similar to the one offered by the eight high-performing states.

For example, in 2012, India had 54 metropolitan cities, which together with their hinterlands (65 districts) accounted for 40 percent of GDP and 45 percent of consuming-class households. By 2025, 79 metropolitan clusters in India will provide the same market size as eight high-performing states, the report said. More info

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