Mumbai, Aug 4: A new survey revealed that Indian cities are growing fast but develop slowly.
The survey conducted by McKinsey Global Institute (MGI) revealed that India"s financial capital, Mumbai, where some 18 million people crowd into slums and skyscrapers, fall well short of delivering even a basic standard of living for their residents.
Mumbai is considered as one of the world"s priciest real estate but about 60 percent of its residents are homeless or live in slums.
The report estimated that by 2030 Indian cities will be home to about 590 million people, nearly twice the population of the United States in 2010. To cater this growth India has to invest $1.2 trillion in capital expenditure.
India now spends $17 per capita on urban infrastructure, whereas China spends $116. India has Asia"s third-largest economy. But the poor infrastructure trims an estimated 2 percentage points off India"s economic growth.
Foreign firms entering India or looking to expand are scouting locations away from Mumbai and Delhi because of poor liveability, which drives up costs.
"China has embraced and shaped urbanisation, while India is still waking up to its urban reality and the opportunities that its cities offer for economic and social transformation," said Richard Dobbs and Shirish Sankhe, McKinsey analysts.