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City Cluster Economic Development in South Asian Countries

India National Forum

Sponsored by

Asian Development Bank

Organised by 

 -  National Institute of Urban Affairs (NIUA)

 -  National Capital Region Planning Board (NCRPB)

Date: 15 July 2009

Venue: Gulmohar Hall, IHC, New Delhi

The Asian Development (ADB) is funding a study on City Cluster Economic Development (CCED) in National Capital Regions (NCRs) on CCED in India, Bangladesh and Sri Lanka. SPMS, Australia and NIUA are carrying out NCR, Delhi case study. Based on the study, NIUA and National Capital Region Planning Board (NCRPB) organized the India National Forum in New Delhi on July 15, 2009. The Forum was attended by over 60 participants representing ADB, NCRPB, Planning Commission, Industry Associations, Cities Alliance, Town and Country Planning Organization, Research and Training Organizations, NGOs, etc.

The Forum was inaugurated by Dr. Noor Mohammed, IAS, Member-Secretary, NCRPB and he said that the study provides important inputs to economic development in the NCR. Dr. Kay Choe, Project Manager, ADB gave a background and overview of the study. She said that the study attempts to gain better knowledge and provide important insights into what can be done to improve the competitiveness of Indian cities. It provides an important understanding of industry cluster development in the NCR economy and will provide strategies to enhance their development. The goal of CCED is to increase income and create jobs to reduce poverty.

Prof. Brian Roberts, International Co-ordinator, SPMS made a presentation on importance of CCED in supporting sustainable urban development. He brought out that cities are now engines of economic growth and must complete to attract business and investment. A new model of business is emerging through collaborative networks, clusters and alliances. Six key factors important to city competitiveness in Asia cities are: Cost of doing business; Human resources and training; Strategic infrastructure; Responsiveness of government and; and Quality of life. He said that local governments in South Asia region do not actively support demand-driven local economic development. Improving the efficiency and effectiveness of enabling environment (especially inter-governmental governance) is critical to attracting investments and economic development. Infrastructure projects that improve logistics of firm operations have great potential to add value to local economics, reduce transaction cost and enhance city competitiveness.

Prof. Chetan Vaidya and team made a presentation on the Delhi NCR region. Prof. Vaidya gave brief profile of NCR region and methodology of the study. Mr. Rajveer Singh and Ms. Anvita Malhotra explained an assessment of the competitiveness of central NCR economy, identification and location of industry clusters. The team further industry described analysis of the existing status, requirements and suggested action plans for three clusters, namely, readymade garments, light engineering and automobile components. Dhaka case study was presented by Mr. Nurul Islam Nazem, CUS and the Colombo presentation was made by L. D. Dickman, CCED team member, Sri Lanka. There were extensive discussions on each of the three case study presentations.

A panel discussion was chaired by Prof. Om Mathur, Professor, NIPFP and other participants included Mr. Rajiv Malhotra, Chief Planner, NCRPB, Mr. Chularatna, Sevanatha Urban Resource Center, Sri Lanka and Prof. Nurul Islam, Hon. President, CUS, Dhaka and Mr. R. C. Kesar, Okhla Industrial Association. The panel members commented on the CCED approach and findings, identified support needed to expedite the functional industrial clusters and identified next step for actions.

Prof. Brian summarized the discussions and said that new factors of competitiveness are seamless logistics systems, innovations of skilled human capital and knowledge, carbon neutral production systems, R&D based collaboration, transparency and strong open environment. In this context, the study provided analysis of structural and sector changes, mapping of spatial agglomeration, identified competitiveness gaps in support and supply chains, priorities strategic investments, and provide information for more demand-driven strategy. The second phase of CCED will focus on pre-feasibility and project design to induce functional industry cluster by supporting hard soft infrastructure.

Prof. Vaidya thanked all the participants.