Case studies – world cities

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Case studies – world cities

Case study – Mumbai:

·         Mumbai is at the heart of India’s growing economy

·         Located on the western coast, it lies within India’s richest state, Maharashtra, in terms of both total and per capita GDP

·         Mumbai is growing rapidly

·         Home to over 20 million people, it is estimated that it receives 1000 new migrants a day

·         By 2025 its population is likely to be over 26 million – it could become the world’s largest city by 2050

·         In its economic strengths lies a problem

·         To attract companies and investment, India’s tax rates, like  it wages are low

·         As a result, companies and high income earners pay little tax money

·         The city therefore has a low revenue from which to provide public services, such as water, sanitation or public health

·         Most low income earners cannot afford charges for these services, so there is no private investment either, a situation which leads to the development of slums

·         Mumbai is a lively, cosmopolitan city whose growth has come from

o   Services

§  Such as banking, insurance, it and call centres

§  Mumbai’s universities produce well educated English speaking graduates who are employed by large western companies, who contract them to provide services – known as outsourcing

o   Manufacturing

§  Half of Mumbai’s factory workers work in the textiles industry, producing cotton textiles for export

§  Other booming industries include food processing, steel;, engineering, cement and computer software

o   Construction

§  A demand for housing, factories and offices has led to a boom in the construction industry

o   Entertainment

§  Mumbai has the world’s; largest film industry, Bollywood

o   Leisure and business services

§  Hotels and restaurants

·         Mumbai’s wealth has had widespread impacts:

o   It provides 33% of India’s entire tax revenue

o   40% of international flights to India land there

o   Demand for property has driven rents in exclusive parts of the city higher than those in London or New York

·         Globalisation has provided Mumbai with international banks, world-class restaurants, smart cars and headquarters of Indian transnational corporations like Tata Steel, Mukesh Ambani Oil and Godrej Retail – businesses that are now taking over their European and us rivals

·         India’s middle class now numbers over 300 million people, and their tastes and preferred lifestyles are often decided in Mumbai

·         Like many world cities, Mumbai is a city of contrasts

·         Its wealth acts as a magnet to hopefuls who arrive in the city every day, yet most live in poverty

·         Behind the bright lights and large middle class enjoying economic growth, huge numbers live in poverty

·         Unemployment and poor public health and water supplies make life both difficult and sickly for a large percentage of the population



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