Skip to main content

Ahmedabad tops second tier cities for business investment: Ernst & Young, long-time Gujarat govt client

By Our Representative
A long-time Gujarat government client propagating Gujarat as India’s best business destination around the world, Ernst & Young (EY), one of the best known international consultants, has said that Ahmedabad tops the list of “second tier cities for investment”. The data published by it show that 26 per cent of the around 505 business executives  it has inteviewed identified as India’s best investment destination among all "emerging business destinations."
The report, titled “EY’s attractiveness survey India 2015: Ready, set, grow”, further says that “35 per cent of businesses established in India rate Ahmedabad as India’s leading emerging city, followed by Vadodara (15 per cent)”, though when it comes to non-established investors, who do not have presence India, “preferred Jaipur”.
As a result, the report says, has emerged as "a favorite among first-time investors, particularly in telecoms and IT-enabled services”, but this it believes is more because of its proximity of Delhi, the national capital. The 250 km corridor off Delhi is fast turning into the hotspot foreign investors, it adds.
Pointing out that Ahmedabad "emerged as the fastest-growing investment destination, with the number of FDI projects increasing to 23 in 2014 from 8 in 2013, and FDI reaching US$682m from just US$285m a year ago”, the report says, “Investors are showing increased enthusiasm for India’s second-tier cities. In 2014, FDI projects in smaller cities surged 79 per cent, compared with just 21 per cent in metropolises.”
Singling out three other towns which are becoming prominent for investment destinations, the report mentions Halol, Sanand and Vapi as “increasingly becoming industrial hubs” along with Chakan, Jaipur, Mohali, Thrissur and Varanasi.
The survey for the report was carried out in March-April 2015, just ahead of the General Motors deciding to withdraw its car plant from Halol and shift to Maharashtra. As for Vapi, it has the stigma of the most polluting township of India, declared by the Central Pollution Control Board. The report does not take into account environmental issues while rating cities.
Banking on Gujarat government sources, the report states, “Sanand, in Gujarat is becoming an export hub for vehicle makers, a trend reinforced by expansion plans unveiled by Ford and Maruti Suzuki”, pointing towards how in FDI “many smaller cities are increasingly emerging as investment destinations” and “big metropolises are facing pressure on resources, especially land, reflected in rising prices.”
Commenting on Ahmedabad, the report states, “Perceived as the top emerging city in India by respondents from the technology, media and telecom (TMT), industrials, business services, infrastructure and energy sectors, the city benefits from the development of sound infrastructure, skilled labor and a widening industrial base.”
The report, citing FdI Markets, a Financial Times outfit, says that in 2014, Ahmedabad registered a rise of 6.8 per cent of FDI, equal to that of Benguluru. It adds, “In 2014, the majority of investments in financial services were directed toward India’s big cities. However, several second-tier cities, including Ahmedabad, Coimbatore, and Kochi, are also becoming attractive, as demand for banking services increases.”
As for the metropolises, which still rank still higher than Ahmedabad, the report states, Benguluru tops the list, attracting 9..4 per cent of the FDI capital in 2014, followed by Mumbai 8.6 per cent, Delhi-National Capital Region 6 per cent, Hyderabad 5.4 per cent, Pune 5.3 per cent, and Chennai 4.4 per cent, and so on. It says, “Delhi-NCR and Mumbai remained the major hubs, but new locations, including Ahmedabad, Pune and Kolkata, are gaining popularity.”
However, the report believes that the shift away from the big metropolises is the future of India, pointing out towards the Government of India’s decision, in September 2014, the unveiled plans to build 100 Smart Cities by 2022, which is expected to boost demand in the real estate, construction and TMT sectors, boost demand for digital technologies -- initiative to lead to more than INR20b (US$330m) of extra investment in the technology sector."

Comments

C S JACOB said…
One can understand Ahmadabad being at the top; but it is unthinkable that Pune to be at the bottom of the pack, cities like Nasik, Aurangabad, Kochi etc being a more preferred investment location!There is something wrong in the criteria for evaluation.

TRENDING

Missed call drive for VVPAT verification follows online plea to "pressure" poll panel

By Our Representative
Several political activists have begun a new campaign, asking concerned citizens to give a missed call on 9667655855 to “support the demand that 2019 Loksabha elections must be declared only after verification of 50% electronic voting machines (EVMs) with Voter Verifiable Paper Audit Trail (VVPAT) receipts.” The effort, supported by civil society networks across India, is meant to "further pressure" India's election machinery to ensure that the poll outcome becomes more transparent.

Now, top Gujarat "litterateur" close to Modi says: Godse was patriot, so was Gandhi

By Rajiv Shah
A little over a week after Prime Minister Narendra Modi criticized BJP candidate from Bhopal Pragya Thakur for calling Nathuram Godse a patriot saying he would never forgive her for the remark, a top Sangh Parivar ideologue, known to close to Modi in Gujarat, has supported her, saying her statement should be seen “within a context.” Thakur won from Bhopal by more than 3.5 lakh votes defeating her nearest rival, veteran Congressman and ex-Madhya Pradesh chief minister Digvijay Singh.

Opposition refuses to legally challenge EVMs amidst plans of "back to ballot" protest

Counterview Desk
Even as opposition to the use of electronic voting machines (EVMs) allegedly to rig polls is growing, a group of prominent citizens who have come together to form the EVM Virodhi Rashtriya Jan Andolan has controversially called for a national protest against EVMs on May 30, demanding future elections should be held only on ballot paper.

When a Pak scribe said Modi has 'proved' Jinnah’s two nation theory right...

By Zafar Agha*
It was around nine in the morning on May 24, 2019, a day after Prime Minister Narendra Modi stormed the Lok Sabha with 300-plus MPs. It was a call from a journalist friend, Muzamal Suhrawardy, from Lahore, Pakistan. I ignored the call. We liberals had a depressing day the previous evening as the opposition to Modi and BJP collapsed. The results belied reports from the ground and even assessments made by colleagues.

If EC's credibility is under question, shouldn't one "assume" EVMs might be tampered?

Counterview Desk
Gauhar Raza, scientist, documentary film maker and poet; senior human rights activist Shabnam Hashmi of the Act Now for Harmony and Democracy (ANHAD); military veteran Major Priyadarshi Chowdhury (retd); and Sucheta De and Sandeep Saurav of the All India Students' Association (AISA), have asked “individuals, organisations and people's movements” to send their endorsement to an appeal they have prepared on Electronic Voting Machine (EVM).

It's now official: Akshay Kumar has not been conferred honorary Canadian citizenship

By Our Representative
It is now official. Super-star Akshay Kumar has not been conferred any honorary citizenship by Canadian authorities, as claimed by him ahead of the 2019 elections. In reply to a query by Roshan Shah, who is a Canadian citizen living in Waterloo, Ontario, and belongs to Ahmedabad, the country’s authorities dealing with issues related with immigration, refugees and citizenship in Canada have said that only six persons have so far been granted honorary citizenship.

Common thread of Modi, political Hinduism, nationalism? 'Contest' of ideas isn't over

By Salman Khurshid*
Losing the 2019 election and that too in a somewhat extreme manner has confronted us with unexpected challenges: Our leadership has naturally taken it very hard and to heart but with suggested options that we cannot imagine or contemplate. Hopefully the emotions will settle soon and give us the direction to pick up the pieces and march again.

Savarkar in Ahmedabad "declared support" to two-nation theory in 1937, followed by Jinnah three years later

By Our Representative
One of the top freedom fighters whom BJP and Prime Minister Narendra Modi revere the most, Vinayak Damodar Savarkar, was also a great supporter of the two nation theory for India, one for Hindus another for Muslims, claims a new expose on the man who is also known to be the original proponent of the concept of Hindutva.

Govt of India overestimated GDP by 2.5%, must restore reputational damage: Ex-CEA

By Rajiv Shah
Top economist Arvind Subramanian has said that changes brought about by the Government of India in data sources and methodology for estimating the country’s gross domestic product (GDP) since 2011-12 “has led to a significant overestimation of growth”. While official estimates place annual average GDP growth between 2011-12 and 2016-17 at about 7 percent, the actual growth may have been 4½ percent, ranging from 3 ½ to 5 ½ percent during the period, he adds.

Will minorities in India be 2nd class citizens? Wake up call: Be a 'communicating' Church

By Fr Cedric Prakash sj*
India today is at a defining moment of her history. There is so much that has taken place in the past five years (and particularly in the last ten days)- that several citizens of the country are genuinely concerned about the future of the country! Will democracy survive? Will key elements of the Constitution be changed?