Mumbai, Dec.12 (ANI-Businesswire India): New Delhi has bagged the most competitive city position for the second consecutive year in the India City Competitiveness Rankings prepared by IFC.
Mumbai came second as per the report, while surprisingly, Gurgaon in Haryana, came sixth position despite holding low scores in the administrative and human capacity. Chennai on the other hand dropped three positions and is ranked fifth.
Jaipur in Rajsthan is still placed at 10th position by stabilizing its overall growth
The report is an indicative of how the corporate world selects the cities for investing and also how governance is important in assessing the level of competitiveness diversity spread across these cities. These variations will indicate to the governing bodies issues that need to be addressed for improving the competitiveness of the cities
The India City Competitiveness Report 2011 is based on the Microeconomic Diamond Model laid down by Michael E Porter and focuses on 'Strategy and Competitiveness'.
The model is widely accepted across the world and assesses the competitiveness of a region or domain based on specific benchmarks. The core of the model ("competitiveness") is founded across the four pillars; factor conditions, demand conditions, context for strategy and rivalry and supporting and related industries.
These four pillars are interlinked with one another and are instrumental in determining competitiveness. To gauge the productivity and thus the prosperity of a city or a region it is essential to identify, measure the city dimensions on and around the four pillars. These four pillars are further categorized into sub-indices that assess the various details of a city through a set of well-defined indicators.
The report supports the evident that the six metropolitan cities that is, Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad are still the prominent competitors in the list of top 10 competitive Indian cities. The metros are followed by cities which are fast catching up and creating a mark on the map, such as Pune that holds 3rd place, Gurgaon holding 6th position, Ahmedabad holding 9th position and Jaipur at 10th place. NOIDA, a city included in the NCR (National Capital Region) has proved a huge potential itself by getting the 11th rank in the City Competitiveness Index 2011.
Cities such as Mysore, Madurai, Lucknow, Bhopal and Ludhiana, besides the state of Goa, are considered to be moving ahead on the growth path and have improved immensely on the competitive index.
On the other hand cities that are seeking for new opportunities are Vijayawada, Agra, Patna Varanasi, Guwahati, Allahabad, Amritsar that should be nurtured further to extract the required result.
Despite the ranks, India's cities are still way behind cities in the developed world.
Though Indian cities should not try to imitate the model of other foreign cities and instead grow uniformly in a sustained manner, complimenting their own inherent strengths. They need to move from factor-driven competitiveness to efficiency-led and finally innovation-led economies.
One of the key derivate from the report is government and the residents of the city should actively participate in mapping the strengths and working towards creating competitive advantages.
For change to happen, cities will have to invest heavily in improving infrastructure and physical support systems. Cities need to move forward on the path of competitiveness by planning and implementing an appropriate strategy addressing their respective strengths and weakness'. (ANI)
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