My India, After 10 Years (Part 4)
Check other articles in the series...In Bombay I saw several signs of progress that may point towards a future India. The housing projects in Powai (Hiranandani Gardens) was well rationalized. This massive complex offers attractive housing, well laid out streets, ample parking, with dedicated green areas and local shops within walking distance. The campus is made up of more than 20 buildings. The domestic airport in Mumbai is another example of progress. It is operated by a private firm (at least partly) and functions efficiently.
The demand for IT services and call centers, fueled by overseas markets has had a measurable impact on the private sector. All sorts of start-ups have popped up to take advantage of this market opportunity. It has also created several very large organizations focused on this sector employing hundreds of thousands of people. However, although this demand may have ignited India’s current growth, it will not fuel its future growth. These types of services are only interested in low cost and can move out of India as quickly as they moved out of the US.
The fuel for future growth is in its massive population. India will become a mega consumer nation, propelling it as one of three or four world powers. One can already see a growing consumer population. Just count the numbers of new shopping centers. However, the demand as India transitions from a rural society to urban consumers, will stumble unless its infrastructure goes into hyper development.
About 50% of the population in Mumbai lives in slums. This means that thousands, not hundreds, of housing projects will need to be started if Mumbai alone wants to become a world-class city. But how can India finance and scale its infrastructure. It will require a complete rethinking in terms of approaches to projects, a revamping of local government agencies and massive injections of capital and know-how.
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