New Delhi: Delhi and Greater Mumbai have been ranked as the leading cities in India in terms of the growth potential for economic and social development, according to a rating of 48 Indian cities by consultant Ernst & Young. The firm developed a rating methodology that assesses several cities on their potential for economic, urban and social development.
“The traditional method of evaluating city potential on the basis of limited parameters, such as population and per capital income, has outlived its utility,” claimed Ganesh Raj, partner and head of real estate practice at E&Y.
Evaluated on five indices, including prosperity, governance, business environment, infrastructure and quality of life, the rating ranks the cities, all of which are covered by the Jawaharlal Nehru National Urban Renewal Mission.
According to a summary of the report, Delhi and Greater Mumbai have been ranked A++, while Bangalore, Chennai, Hyderabad, Kolkata are A+ cities. Pune and Ahmedabad get an A.
Surat, Chandigarh, Nagpur, Vadodara, Vishakapatnam and Jaipur get B++ cities ranking. Coimbatore, Lucknow, Bhopal figure in the list of B cities while Madurai, Patna and Srinagar have been categorized as C cities. Delhi is the leader in the infrastructure index with Chennai and Hyderabad faring well. Visakhapatnam and Nagpur have been ranked highly on both business environment and infrastructure index.
The Ficci-Ernst&Young report also undertook a survey of leading investors that suggested they believe that more than $5 billion would be deployed into Indian real estate over the next three years, with 20% saying the deployment would be over $20 billion.
Close to 80% of the respondents believe that in the short to mid-term (three to five years), India as an investment destination is ‘excellent´ or ‘very good´ compared with other Asian markets such as China, Vietnam, Malaysia, Indonesia and Thailand.
Also, more than 50% of respondents believe that high growth trajectory (year-on-year growth of 25%) would continue for the next two to three years.