‘In­dia cities to grow fastest in Asia’

New Straits Times - - Business -

BEI­JING: Delhi will have the fastest growth of any city in Asia, with the econ­omy to be al­most 50 per cent larger in 2021 than it was at the end of last year.

In­dian cities are set to ex­pand the most across the re­gion, with growth speed­ing up from the past five years, ac­cord­ing to a new study from Ox­ford Eco­nom­ics, which ranked Asia’s 30 largest cities.

With fi­nan­cial and busi­ness ser­vices pro­jected to be the fastest grow­ing sec­tor in In­dia, Delhi’s dom­i­nance in this in­dus­try will lead to higher growth and higher in­comes.

“Lim­its on for­eign own­er­ship of In­dian com­pa­nies are grad­u­ally be­ing re­duced or elim­i­nated,” wrote Mark Brit­ton, lead econ­o­mist on the re­port.

Con­sumer firms such as Ja­pan’s Muji are bet­ting on the change. Par­ent com­pany Ry­ohin Keikaku Co sees In­dia be­com­ing its sec­ond largest in­ter­na­tional mar­ket, af­ter China. And Ama­zon.com Inc’s In­dian unit is seek­ing ap­proval to in­vest in a food sup­ply chain and take ad­van­tage of gov­ern­ment moves to ease rules on for­eign re­tail­ers.

China’s ex­pan­sion will slow, although the largest five cities will still be record­ing growth rates of six per cent or more.

There will be a slight slow­down across the re­gion amid mod­er­at­ing im­port de­mand from China, with growth ex­pected to av­er­age 4.2 per cent per year over the five years to 2021, down from 4.5 per cent in 2012-2016. Bloomberg

BLOOMBERG PIC

Firms, such as Ja­pan’s Muji, are bet­ting on In­dia be­com­ing their sec­ond largest in­ter­na­tional mar­ket, af­ter China.

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