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According to a report by the National Council of Applied Economic Research,
the top 20 cities in India make up less than 10 percent of India's population,
but generate more than 30 percent of income. These cities account for over 60
percent of the surplus income generated in the country and are projected to have
their household income grow at 10 percent annually over the next eight years. In
2007-08, these 20 cities fuelled consumption worth $100 billion.
The report also states that in cities like Chandigarh and Surat, where the
average annual household income crossed the Rs 4 lakh mark in 2007-08, per
capita income is roughly equivalent to China's per capita income in 2007.
Needless to say, this is very interesting news for solution providers (SPs)
because by tapping into these cities they can grow their business since more
than half of the households in the country will be middle-class by 2016, while
the high-income segment is likely to triple by that year.
This is precisely why the current issue of DQ Channels profiles the 10
cities, which show the most promise in India. These are the cities where there
is growth that can be harnessed if you want to maintain your company's growth as
well. No longer are the metros or even the A-class cities, the place to be. The
growth is in the smaller towns.
This is precisely why almost all vendors are now focusing on the C and
D-class cities. Every roadshow, every event is targeted at addressing the needs
of partners and getting better buy in from customers in these cities.
And given the potential of the IT business there, it is not surprising at
all. For instance, Jaipur and Ludhiana are supposedly clocking in business of Rs
50 crore per month, and in most of the cities profiled in the pages within, have
seen the laptop sales register almost 100 percent YoY growth. And while these
cities are not recession-proof, they will surely be better insulated from the
drastic impact of a slowdown.
So here is DQ Channels ode to those 10 cities that no vendor, distributor or
SP can afford to miss.
Vinita Bhatia
vinitavs@cybermedia.co.in Page(s) 1
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