India’s Wealth Lies in Its Cities

It was once believed that India lives in its villages.

.

Now it is clear that India’s wealth lies in its cities, or more specifically, Mumbai.

 

India's Wealth Lies in Its Cities

A study conducted by Delhi-based SMC Global classified companies geographically on the location of their registered offices.

.

It reveals that Mumbai-registered companies account for 36.28% of the total BSE 500 market cap.

.

Some of the prominent names based out of Mumbai are Reliance Industries, L&T, HDFC and SBI.

.

Also, out of the market capitalisation ascribed to Maharashtra which has the highest market capitalization among the states — more than 90% originates from Mumbai.

🙂

In fact, Mumbai and six other cities account for 85.71% of the total market capitalisation of BSE 500.

.

With Delhi NCR (National Capital Region, which includes satellite cities such as Gurgaon and Noida along with the capital) contributing 27.82%.

.

After the financial and political capitals, state capitals take the fore.

.

Bangalore lays claim to 7.10%,

Hyderabad to 4.86% and Kolkata accounts for 3.83%,

while Ahmedabad and Chennai account for 3.35% and 2.47%, respectively.

.

On a state-wide basis, five states in combination with Delhi NCR and Maharashtra account for 94.20% of the total market cap.

A total of 66.17% of the index’s market cap can be traced to Maharashtra and Delhi NCR.

While the latter accounts for 38.35%, Delhi accounts 27.82%.

.

Karnataka accounts for 7.74%, Gujarat, 7.48%, Andhra Pradesh is at 4.95% and Tamil Nadu at 4.02%, while Bengal has 3.83%.

.

Though the big Indian companies have a pan-India presence with factories or plants located across the country, they tend to have registered offices in metros.

.

That is because of the ease of operations and presence of other corporate houses, suggested the study.

.

“The traditional metro cities have accumulation advantage.

Its ultimately the money which brings in more money.

As the Indian economy keeps evolving, tier-2 and tier-3 cities may catchup gradually, to bring-in more equitable distribution of wealth across the country.”

.

…said Jagannadham Thunuguntla, equity head at SMC Capitals.

🙂

India Inc created 3,00,000 jobs in US: Study

India Inc created 3,00,000 jobs in US: Study

When the Indian outsourcing industry is being blamed for taking away American jobs, a study has found that corporate India has created employment for 3,00,000 people in the US between 2004 and 2007.

An India Brand Equity Foundation study released in Washington on Wednesday by Commerce and Industry Minister Anand Sharma mentioned USD 105 billion contribution by the Indian industry to the US economy during 2004-07.

“This revealed a story of commitment to optimise and to invest in the future of the relationship,” Sharma said.

The USD 50-billion Indian outsourcing industry has come in for a major attack in the US, bolstered by President Barack Obama’s calls to the US companies to move from Bangalore to Buffalo.

Concerned over the backlash in the US, the Indian industry has been trying to lobby with influential Americans and opinion leaders about the benefits that the American can derive from developing economies.