Comparing Urbanization in China and India (McKinsey Quarterly)

Comparing Urbanization in China and India (McKinsey Quarterly):   “China and India are in the vanguard of a wave of urban expansion that is restoring the global prominence that Asia enjoyed before the European and North American industrial revolution. By 2025, nearly 2.5 billion Asians will live in cities, accounting for almost 54 percent of the world’s urban population…  Never before in history have two of the largest nations (in terms of population) urbanized at the same time, and at such a pace….  So what markets are likely to benefit the most from these trends?

In India, by 2025, the largest markets will be transportation and communications, food, and health care, followed by housing and utilities, recreation, and education. Even India’s slower-growing spending categories will represent significant opportunities for businesses because these markets will still be growing rapidly in comparison with their counterparts in other areas of the world.

In China’s cities, the fastest-growing categories are likely to be transportation and communications, housing and utilities, personal products, health care, and recreation and education…

India has underinvested in its cities; China has invested ahead of demand and given its cities the freedom to raise substantial investment resources by monetizing land assets and retaining a 25 percent share of value-added taxes. While India spends $17 per capita on capital investments in urban infrastructure annually, China spends $116. India has devolved little real power and accountability to its cities, but China’s major cities enjoy the same status as provinces and have powerful political appointees as mayors. ”

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