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Mumbai, India Case study: Economic development and rapid
Mumbai is a mega city on the west coast of India
It is the capital of India and is the biggest city with over 20 million people
In 1947 Mumbai's population was 4 million
An increase of more than 8 million people have occurred due to internal
migration more than half of that increase occurring between 1960-1970
The population density is estimated to be about 22,000 people per square
It is India's finance centre (due to the ports), a major port and industrial area and a
centre of culture due to "Bollywood"
It lies within India's richest state, Maharashtra in terms of both total and per capita GDP
Mumbai was originally a series of fishing villages than became a port and this is what helped
encourage its early development
Estimated that it receives 1000 new migrants a day and by 20 its population is likely to
be over 26 million could be the world's largest city by 2050.
HOWEVER its economic strength lays a problem: to attract companies and investment,
India's tax rates are low meaning companies and high income earners pay little tax. This
causes low revenue from which to provide public services water, sanitation or public
health. Most low income earners cannot afford charges for these services = no private
investment = development of slums.
Until the 1980's, the economy was based mainly on textile manufacturing and
shipping with there still being a major port there today.
There's been an increase in IT and financial services recently
Mumbai is a major centre for out-sourced work companies there work for foreign
Mumbai is a major media centre for India and is one of the largest in the world.
Services banking, insurance, IT and call services. Mumbai's universities produce
well-educated, English-speaking graduates who are employed by large western
companies (e.g. BT) who contact them to provide services outsourcing. India's wage
rates are low e.g. a high salary = $5000 a year.
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Manufacturing half of Mumbai's factory workers work in the textiles industry ,
producing cotton textiles for export. Other booming industries: food processing, steel,
engineering, cement and computer software.
Construction demand for housing, factories and offices = boom in construction
Entertainment Mumbai has world's largest film industry Bollywood
Leisure and business services e.g. hotels and restaurants.…read more
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Provides cheap accommodation for low-skilled workers, many have electricity
Small workshops = cheap pottery, plastic toys, clothes etc...
Average incomes are low as Mumbai is very expensive they cannot afford to
Many people are forced to work in the informal sector (self-employed work
that has little security e.g. street trading)
However, 80% of Mumbai's waste is recycled in Dharavi the recycling
industry is worth $1.5million a year and employs 10,000 people.…read more