Identifying higher potential states and cities in India

McKinsey finds that eight high-performing states in India will account for some 52 percent of India’s incremental GDP growth from 2012 to 2025. Along with four very high-performing city-states, these eight will have 57 percent of India’s consuming-class households in 2025. Rapid urbanization and the associated income growth will propel the high-performing states to per capita income levels similar to those of today’s middle-income nations. In 2025, for instance, Maharashtra’s 128 million residents will have a purchasing-power parity similar to Brazil’s today. Goa’s and Chandigarh’s 2025 purchasing-power parity will mirror that of Spain today.

India’s economic geography in 2025: states, clusters and cities Identifying the high potential markets of tomorrow (76 pages)

India’s 29 states and seven union territories are at different stages of demographic and economic evolution.

The research underpinning McKinsey’s latest report—India’s economic geography in 2025: States, clusters, and cities—combines a robust understanding of macroeconomic issues at a national level with microlevel insights on the economic and income potential of states, districts, and cities.1 By building a granular view, based on several different economic scenarios, of where growth and market opportunities will emerge, the report shows that businesses can tailor investment decisions to capture a disproportionate share of the pie in India’s ever-changing economic geography

SOURCES – McKinsey, McKinsey Insight

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