Mumbai, Delhi and Bengaluru among most globalised cities
Most cities driving the globalisation process are located in ‘developing’ countries. Though most Indian and Chinese cities are closer to per capita incomes of $5,000 pa, they are rapidly integrating into the global economy
Mumbai, Delhi and Beng al ur u – al l tier-I cities of India – rank at No. 4, 14 and 18, respectively, among most globalised emerging cities (see table) in JLL’s new report Globalisation and Competition: The New World of Cities.
The report reveals interesting information about how ‘emerging world cities’ are integrating into the global economy; have become centres of demandsupply; the new world order of cities and how leading Indian cities stack up in all of these indices.
‘Emerging world cities’ are the business capitals of large domestic economies, and experience many of the scale, governance and implementation challenges of more established regions. Often supported actively by their national governments, they are in a process of economic adjustment and urban and metropolitan restructuring to optimise the benefits of global engagement.
In fact, the ongoing Globalisation and World Cities ( GaWC) studies reveal big changes in the number and type of cities that are taking on international functions. Today, of the 100 most globalised cities according to GaWC data, 44 are middle-income and lower income cities with real GDP per capita of below US$25,000.
Nearly half of the cities that are driving the process of globalisation are located in the socalled ‘developing’ countries. They vary considerably in size, political context and development path. Their per capita income (by PPP) diverges significantly – cities such as Warsaw and Moscow are beginning to enter upper- middle or upper income status, while Indian and some Chinese cities are still closer to $5,000 per annum. But the signs indicate that they are all becoming rapidly integrated into the global economy, and their economic performance has become closely indexed to global demand.
‘Emerging world cities’ are centres of demand, supply
Between now and 2030, disposable incomes in Shanghai and Beijing are set to rise by over US$350 billion – more than in London and Tokyo – while consumer spending may increase by more than US$250 billion. Outside China, centres such as Jakarta, Istanbul and Mumbai are also seeing an urban consumer demand surge. This growth has big implications for the growth of the retail sector, and for the demand and supply of different kinds of space in these cities.
‘Established world cities’ used to host the overwhelming share of large global firms, but this picture is rapidly changing with 26% of firms having revenue above US$1 billion now being based in ‘emerging world cities’, and having the potential to reach 50% by 2025.
The new world order of cities
Mumbai has high potential and steps are being taken to strengthen governance: Manila, Mumbai and Jakarta are not only performing well at attracting real estate investment and outsourcing activities but also have more chronic infrastructure supply challenges compared to cities mentioned above. Transnational fir ms find these cities attractive as