Entrepreneurship in India. Its Current and Future Impact on Competitiveness Amit Kapoor PART 2 of 8
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1 Entrepreneurship in India Its Current and Future Impact on Competitiveness Amit Kapoor PART 2 of 8
2 Manufacturing'sector'in'the'World'Economy' CAGR'of'Manufacturing'Sector'from'2002I2010' 25.00% 20.00% 15.00% 10.00% 5.00% Rising&in& Manufacturing& growth&rates& against&world& average&and&a&lot& of&poten6al&for& the& manufacturing& sector&in&the& future& Share!of! Manufacturing!in! total!gdp!in!2010!in! the!world!was!16.57%!! Low&Manufacturing& growth&rates&and& the§or&becoming& increasingly&less& important& Russian'Federa1on' India' South'Africa' Denmark' United'States' United'Kingdom' Brazil' Sweden' Italy' Japan' Rising&in& manufacturing& growth&rates& against&world& average&and& manufacturing& being&&being&a& very&prominent& sector&in&the& economy& Singapore' Germany' China' Korea,'Rep.' Low&Manufacturing& growth&rates&and& the§or&s6ll&being& quite&important&for& the&economy&! CAGR!of! Manufacturing!! ( !in!the! world!was!7.59%!!! 0.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 2!5.00% Share'of'manufacturing'in'total'GDP'2010'
3 PROSPERITY IN INDIA ' High'but'declining'versus'India'' High'and'rising'versus'India'' Goa' ' ' All%India%GSDP%/Capita%rate% (CAGR%of%8.36%%% ts' Delhi' Haryana' 80000' Maharashtra' 60000' All%India%Average%of% 46,836%Rupees/ capita% Karnataka' Andhra'Pradesh' Gujarat' Kerala' Himachal'Pradesh' Tamil'Nadu' Punjab' 40000' Sikkim' UIarakhand' West'Bengal' Orissa' Meghalaya' Mizoram' Rajasthan' Nagaland' Manipur' Jammu'&'Kashmir' Madhya'Pradesh' Tripura' Jharkhand' UIar'Pradesh' Arunachal'Pradesh' Assam' Chha2sgarh' 20000' Bihar' Low'and'declining'versus'India'' Low'but'rising'versus'India'' 3 0' 0' 2' 4' 6' 8' 10' 12' 14' 16' Gross%Domesc%Product%per%Capita%CAGR%rate,% % Source:(h*p://
4 CREATIVE ECONOMY OF INDIAN STATES AND CITIES The report uses a set framework of 3T s of Economic Development of Indian Cities namely Tolerance, Talent and Technology to assess the Creative economy of Indian Cities. Tolerance can be described as the openness of a city or region to accommodate immigrants, minorities etc. Talent is the second T of economic development. Talented individuals are responsible for generating innovative ideas that result in technologies that can stimulate economic growth and prosperity. Technology is the third T of economic development. Greater utilisation of technology raises the competitiveness of that region by improving the ability of businesses to provide new goods and services and acquire cost-saving advantages, often through productivity gains. Crea/ve Class Tolerance Talent Technology TerritorialAssets 4 Source:(h*p://mar1nprosperity.org/media/Crea1ve%20India%20Ci1es%20Report_14E02E12_LR.pdf
5 CREATIVE ECONOMY OF INDIAN STATES Source:(h*p://mar1nprosperity.org/media/Crea1ve%20India%20Ci1es%20Report_14E02E12_LR.pdf
6 NUMBER OF FACTORIES AND CI AND DIVERSITY OF FIRMS SUB- INDEX SCORE 40000" TN# CI# and# Diversity# of# firms# shows# a# very# mild# posi7ve# correla7on# between# Number# of# factories# a s# p e r# t h e# A S I# (Annual# Survey# of# Industries# dataset# and# the# CI# and# Diversity# of# firms# sub@index.# Number#of#factories#(Numbers#(2011>12# 35000" 30000" 25000" 20000" 15000" 10000" UP# WB# KL# RJ# KA# AP# HR# MH# PB# GJ# y#=#217.35x#>#5076.2# R²#=# # MP# BR# DL# 5000" AS# OD# UK# JH# HP# CG# TR# JK# NL# MN# AR# SK# MZ# ML# 0" 40" 45" 50" 55" 60" 65" 70" 75" 80" 85" CI#and#Diversity#of#Firms#Score# 6 Source:(Annual(Reports(of(CGPDTM(Various(Rounds(
7 STAGES OF DEVELOPMENT FOR SCR 2014 City%StateEconomies Innova5onDrivenEconomies(PercapitaGDP Above1500USD Transi5onEconomies(PercapitaGDP1300to 1500USD InvestmentDrivenEconomies(PercapitaGDP 900to1300USD Evolving/ChangeoverEconomies(Percapita GDP700to900USD FactorDrivenEconomies(PercapitaGDPless than700usd 7 NorthEasternEconomies Source:(Ins1tute(for(Compe11veness(Analysis
8 SCR 2014 INDEX! STATES% Microeconomic!Compe,,veness! Score! CITY%STATES% Goa% 1! Delhi% 2! Maharashtra% 1! Gujarat% 2! INNOVATION%DRIVEN%ECONOMIES% Tamil%Nadu% 3! U>arakhand% 4! Haryana% 5! Punjab% 1! TRANISITION%ECONOMIES% Himachal%Pradesh% 2! Kerala% 3! INVESTMENT%DRIVEN%ECONOMIES% EVOLVING/%CHANGEOVER% ECONOMIE3S% FACTOR%DRIVEN%ECONOMIES% NORTH%EASTERN%ECONOMIES% Karnataka% 1! Andhra%Pradesh% 2! Rajasthan% 3! West%Bengal% 4! Odisha% 1! Madhya%Pradesh% 2! ChhaMsgarh% 3! Jharkhand% 4! Jammu%&%Kashmir% 5! U>ar%Pradesh% 1! Bihar% 2! Sikkim% 1! Mizoram% 2! Arunachal%Pradesh% 3! Assam% 4! Nagaland% 5! Tripura% 6! Meghalaya% 7! Manipur% 8! 8 Source:(Ins1tute(for(Compe11veness(Research
9 UNTANGLING THE LINKAGES BETWEEN CITY, COMPETITIVENESS AND ECONOMIC GROWTH! More%advanced%economies%are%more%urbanized%economies%! Ci2es%tend%to%be%the%only%place%where%companies%and%individuals%find%opportuni2es%for%successful%economic%ac2vity%! Rise%of%ci2es%is%seen%as%an%inevitable%part%of%development%but%also%as%a%policy%challenge%! Avoid%a%poli2cal%schism%between%metropolitan%and%rural%regions%! Ci2es%have%a%different%role%to%play%in%advanced%economies%%! From%the%compe22veness%perspec2ve,%the%policy%impera2ve%is%crucial%for%ci2es%as%well%as%for%rural%regions%%! Ci2es%and%the%rural%regions%around%them%should%cooperate%closely%! Tried&to&manage&the&growth&by&crea2ng&ar2ficial&boundaries&! The&approach&failed&and&made&living&condi2ons&worse& The$case$with$Mumbai$ $! Different&policy&approach&is&required&that&focuses&on&be=er&public&services&and&land&use&inside&the&city&! Compe22veness?oriented&policy&approach&can&be&used&that&changes&the&economic&fundamentals&of&where&people&live&and&work& 9 Source:(Ins1tute(for(Compe11veness(Research
10 AGGLOMERATION EFFECTS " States#that#have#a#high#degree#of#Urbanisa7on#tend#to#have#greater#NSDP#per#capita.# DL# NSDP#per#capita#(at#2004N05#prices#in#201N11### " " " 50000" UK# HP# AR# AP# OR# AS# BR# SK# HR# ML# WB# NL# RJ*# TR# CH# JK# JH# MP# MN# UP# MH# TN# PB# GJ*# KL*# KA# MZ*# GA*# y#=#1731.3x#+#19928# R²#=# # 0" 0.00" 20.00" 40.00" 60.00" 80.00" " " %#of#people#residing#in#urban#areas#in#2011# 10 *#depicts#states#with#nsdp#per#capita#in#2011n12#all#other#figures#for#2012n13## # Source:(h*p://
11 DEVELOPMENT OF INDIAN CITIES Statewise%DistribuGon%of%Million%Plus%UA's/%Towns% Jaipur&& Kanpur&& Surat&& Pune& Ahmedabad&& Hyderabad&& Bangalore& Chennai& 2.3% 4.2% 2.0% 4.5% 2.7% 3.7% 4.4% 5.4% 5.6% 6.4% 5.6% 6.6% 7.6% 8.9% 9.5% 9.9% Karnataka% Bihar% NCT%Delhi% Haryana% Chandigarh% Jammu%and%Kashmir% ChhaAsgarh% 2" West%Bengal% 2" Punjab% 2" Andhra%Pradesh% 3" Jharkhand% 3" Rajsthan% 3" Tamil%Nadu% 4" Gujarat% 4" Madhya%Pradesh% 4" Maharashtra% 6" Kerala% 7" U"ar%Pradesh% 7" 0" 2" 3" 4" 5" 6" 7" Number%of%Milion%Plus%UAs/%CiGes% Kolkata&& 13.1% 20.1% Mumbai& 16.1% 25.8% Delhi&& 15.7% 28.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 11 Popula3on%in%2000%(in%Million% Popula3on%in%2025%(in%Million% Source:(Census(2011(
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