Page 97 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE

➦ Urbanisation is an inevitable outcome of the growth process; as
the ecosystem based on manufacturing-infrastructure-energy
trinity falls into place, urbanisation is bound to accelerate

➦ India’s urbanisation rate has surely increased over last few
decades, but potential is still huge; the urbanisation rate is now
close to 35% compared with China’s nearly 50%

➦ Urban centres tend to develop as clusters around specific
economic activities—financial services in Mumbai and
information technology in Bangalore; this attracts the youth
searching for employment

➦ Urbanisation has multiple second-order benefits; apart from
offering better living standards (access to health, education and
entertainment), it promotes innovation and entrepreneurship
through network effect

➦ Furthermore, urbanisation promotes higher participation of
women in workforce and engenders new spending and savings
behaviour among the populace

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