September 16, 07:53Aaj Tak

According to the Oxford Economics index, 55 Indian cities entered the top 100 fastest-growing urban economies, but quality of life issues persist.

Indian urban centers are becoming part of the number of most dynamically developing urban economies in the world. According to the Global Cities Index 2026 from Oxford Economics, 55 Indian cities made it into the list of the 100 fastest-growing cities globally.

In the 2026 ranking, New York took first place, followed by London, Paris, Seattle, San Francisco, Dublin, Boston, San Jose, and Tokyo. Twenty-three Indian cities entered the top 50 global cities, indicating accelerated economic growth in various cities across the country. This progress is driven by strong economic growth, increased employment, business expansion, and the development of university networks.

However, the report points out that issues such as quality of life, ecology, and income inequality are hindering the standing of Indian cities.

Senior Economist at Oxford Economics, Elizabeth Martindale, noted that India has demonstrated an unprecedented level of development in urban growth this year. In her opinion, this growth is not limited only to large metropolises but also shows good development prospects in smaller towns.

Delhi ranked highest in India, securing 268th place globally, which is five positions higher than last year. Delhi achieved its best performance in the human capital category, ranking 13th globally, surpassing cities like Toronto, Seoul, and Beijing. Currently, Delhi is the 63rd largest urban economy in the world, and according to Oxford Economics forecasts, it could become the 14th largest urban economy by 2050, with a potential economic power exceeding $2 trillion.

Liam Sides, Director of Cities and Regions at Oxford Economics and lead author of the report, stated that Delhi possesses a solid foundation of talent and large companies necessary for a global city. Nevertheless, poor air quality and income inequality remain serious obstacles.

Bengaluru was selected as a 'City to Watch,' and its global ranking improved by 20 positions, reaching 311st place. It shows the greatest improvement among the six largest Indian metropolises. This tech hub is also among the top 10 fastest-growing cities by projected GDP. Real economic output in the city is expected to grow at an average annual rate of 9.2% between 2026 and 2030.

According to Martindale, young and qualified graduates from hundreds of colleges in Bengaluru continue to attract major international corporations. She added that Bengaluru's emergence as a major center for research and development could lead to higher wages, improved living standards, and long-term economic growth.

Mumbai's global ranking stood at 330th, and it became the strongest city in India in the corporate headquarters category, ranking 23rd globally. Mumbai's economy is currently ranked 99th among the world's largest urban economies. It is projected to rise to 36th place by 2050.

Other major Indian cities also showed good results in the index: Chennai ranked 381st, Hyderabad 421st, and Pune 427th. Forecasts suggest Chennai will rank 16th and Hyderabad 15th in terms of projected GDP growth.

India's economic growth is not limited to large metropolises; small towns are also showing rapid progress. Amravati ranked seventh globally in development indicators, Surat 11th, and Tiruchirappalli 13th. Many other Indian cities have also significantly improved their positions: Ranchi rose by 74 places, Prayagraj by 70, Lucknow by 58, and Visakhapatnam by 54.

This data indicates that urbanization in India is no longer solely concentrated in old and large economic centers, but small and developing cities are also growing actively.

Despite rapid economic growth, several fundamental problems persist in Indian cities. According to Oxford Economics, quality of life remains the weakest area in Indian cities. The average ranking of Indian cities among the 1000 included in the index was 850th. Air quality in Delhi is also a major concern, as its air purity score was the second worst in the index.

Martindale emphasized that poor air quality, income inequality, and education levels are key areas where Indian cities lag behind other Asian cities.

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www.aajtak.inSeptember 11, 03:59

India's Next Industrial Revolution: From Market Opening to Nation Building

Some economic reforms yield immediate results, while others transform the very structure of the economy, creating opportunities that bear fruit over decades. The government of Narendra Modi's decision to open strategic and technological sectors to private companies falls into the latter category.

For many years, areas such as aerospace, space industry, and advanced electronics were entirely state-dependent. The private sector had limited scope for building its strength, making large-scale investments, or competing globally. The Modi government recognized that for India to become a developed economy, it could not remain the primary player in all strategic industries; instead, it needed to become a supporting element, developing policies, incentives, and infrastructure that allow private capital and business to significantly advance India's potential.

These changes have begun to shape a new industrial landscape in fields such as space, semiconductors, data centers, electronics, solar panel manufacturing, and aerospace.

The scale of this opportunity is enormous. According to a recent Jefferies assessment, India's growing industrial revolution could boost the country's space economy to approximately $45 billion by 2030. The data center sector has investment potential of around $45 billion. About $20 billion has already been invested in semiconductors, with an additional incentive program amounting to $13 billion. Furthermore, by the end of this decade, it is expected that 90% of the solar panel manufacturing supply chain will be established in India. As India deepens its involvement in manufacturing and global supply chains, the electronics and aerospace industries are also opening up vast prospects.

These figures should not be viewed in isolation, as they pertain to different sectors and different timeframes. However, they clearly demonstrate that India is simultaneously creating numerous new, multi-billion dollar industrial systems.

The space sector is the best example of what happens when government policy and private enterprise converge. The decision to open the space sector to private participation in 2020 completely transformed the industry. Startups like Skyroot, Agnikul, Pixel, and Digantara are now manufacturing rockets, satellites, earth observation technologies, and other items previously restricted to the public sector. The Indian space economy is projected to grow from approximately $8.4 billion to $44 billion by 2033, including about $11 billion in exports.

The significance of this extends far beyond statistics. India is creating its own commercial space sector, where the technical might of the public sector can be combined with private capital, new ideas, and speed. This model is now being applied in other strategic domains.

Semiconductors are critically important as they form the foundation of modern industries: automotive, smartphones, telecommunications, artificial intelligence (AI), defense systems, and industrial machinery. Therefore, India's mission in semiconductors is not limited to chip production. It aims to create an ecosystem encompassing chip manufacturing, packaging, and testing, chip design, necessary components, equipment, and the entire related industry. The investment of about $20 billion already poured into this sector, along with the $13 billion incentive package, marks the beginning of a process toward self-sufficiency in an area where excessive dependence on foreign nations was a serious weakness.

Electronics demonstrates how successful this approach can be. Electronics manufacturing in India has grown from approximately ₹1.9 lakh crore in 2014–2015 to ₹13.11 lakh crore in 2025–2026. Electronics exports have increased from approximately ₹38,000 crore to ₹4.24 lakh crore. Mobile phone exports have risen from about ₹1,500 crore to approximately ₹2.59 lakh crore. India has transitioned from a country that primarily imported mobile phones to an exporting nation, and nearly all phones sold in the country are now manufactured domestically.

This is the crucial path: manufacturing goods domestically, strengthening the entire component ecosystem, scaling up production, and then competing in global markets.

Data centers represent another emerging area. Data center capacity in India is growing very rapidly and could increase from 2 gigawatts to 5–10 gigawatts in the coming years. This could generate investment opportunities worth around $45 billion in power, cooling, construction, network technology, and digital infrastructure. As AI, cloud computing, and digital services grow, India's engineering talent, digital adoption, and low cost could establish it as a major digital infrastructure hub in this sector.

Solar panel manufacturing adds another vital strategic link. Establishing the entire solar energy supply chain domestically reduces reliance on imported components and fosters an industry that is rapidly evolving in global markets.

business-standard.comSeptember 4, 07:23

Moody's forecasts that the data center boom in India will add only 0.13% to GDP by 2030

Despite billions of dollars in announced investments in the data center sector, India's gross domestic product growth may remain limited by 2030, as high import dependence constrains the creation of domestic added value and jobs, reports Moody's Ratings in a report published on Tuesday.

Moody's forecasts indicate that capital expenditures on data centers could contribute about 0.10 percent to India's nominal GDP in 2025 during the construction phase, while investments in additional power generation could add another 0.03 percent. Even after the facilities are fully operational, their contribution is estimated by Moody's to be only 0.13 percent of GDP.

Moody's notes that planned investments and construction employment in India are significant in absolute terms, but small relative to the size of the economy. Although these investments have strategic and local importance, they are 'not yet large enough to substantially change the national growth profile.' The long-term economic effect will depend on whether the investment triggers supplier localization, broader adoption of cloud technologies, growth in digital service exports, and the development of the entire ecosystem.

Limited job growth

Job growth is also expected to be modest, as data centers require significant capital investment. Employment related to construction is estimated to account for about 0.01 percent of industry employment in 2025, increasing to 0.02 percent after the facilities become fully operational. Long-term employment is likely to remain limited and concentrated in highly specialized roles.

Power availability is not a constraint

According to Moody's, power availability is unlikely to become a nationwide obstacle. It is expected that by 2030, data centers will consume less than 5 percent of India's total electricity demand, putting the country in a more favorable position compared to smaller regional markets for absorbing additional load. Nevertheless, timely provision of transmission and distribution connectivity to major data center clusters, including Mumbai, will remain critically important.

The key limiting factor for India is the high intensity of imports in this sector. A significant portion of data center expenditures goes towards importing servers, semiconductors, cooling systems, and specialized IT equipment, which limits domestic added value. Moody's noted that imports related to data centers accelerated since 2023, particularly in India, Thailand, and Vietnam.

India attracts over $250 billion in announced investments. Domestic conglomerates, global technology companies, and small independent firms that have announced investments exceeding $250 billion are betting on the growth sector. Major projects include the Google and Adani project worth $15 billion with a capacity of 1 gigawatt (GW) in Visakhapatnam, as well as the Tata Consultancy Services HyperVault project of similar size valued at $7 billion, announced in October 2025.

Amid increased investor interest in data centers, Finance Minister Nirmala Sitharaman previously announced this year a complete tax holiday until 2047 for foreign cloud service providers who use Indian data centers to host data or run workloads.