Coimbatore

BY
C.S.KARTHIK
UMG16001
 National administrative system Decentralized fedral republic
Coimbatore municipal
Local administrative units Corporation
Income Status Lower Middle
Population in millions 2.2
Per capital GDP in 2012 US $3,046
Per capital GDP in 2012 (% of national
average) 222
Absolute GDP growth, 2007 - 12 (%) 34
Average annual GDP growth, 2002 -
12 (%) 11.5
Job growth 2007 - 12 (%) 7.3
Average Annual job growth 2002 -
2012 (%) 3.2
City Gini coefficient 0.52
City employment diversification 2012 0.27
BPO outsourcing, precision
manufacturing, machinery
Main existing and emerging economic engineering,textiles,education,s
sectors ervices
• INDUSTRY ASSOCIATIONS
• CHAMBERS OF COMMERCE
• CII
• INDIVIDUAL FOR PROFIT FIRMS
• ENTREPRENEURIAL ASSISTANCE
• INVESTOR TARGETING
• PLACE BRANDING AND PROMOTION
• SITE SELECTION SERVICES
• MANAGEMENT
 ?
• TRANSFORMATION ECONOMIES : FACED WITH THE EROSION OF ITS TRADITIONAL ECONOMIC STRUCTURES
BECAUSE OF CHANGING CIRCUMSTANCES (FOR EXAMPLE, GLOBAL COMPETITION OR ALTERED PATTERNS OF
COMMERCE), COIMBATORE HAS SUCCESSFULLY REINVENTED THEIR METROPOLITAN ECONOMIES.
• GLOBALIZING CITY ECONOMIES: THE CITY IS LOCATED IN A COUNTRY THAT IS TODAY MORE OPEN TO THE
OUTSIDE WORLD THAN IT WAS A DECADE OR TWO AGO. CLOSER INTEGRATION INTO GLOBAL VALUE CHAINS,
ALONG WITH A DELIBERATE INTERNATIONALIZATION STRATEGY AS AN ECONOMIC DEVELOPMENT TOOL, HAS
BEEN OBSERVED
• CATCH-UP ECONOMIES: THE ECONOMIC GROWTH HAS BEEN ROBUST IN RECENT YEARS, YET INDICATIONS ARE
THAT EXPANSION WAS CATCH-UP GROWTH; THAT IS, IT MADE EFFORTS TO CLOSE THE GAP WITH MORE
DEVELOPED CITIES IN THEIR COUNTRIES OR REGIONS. AS FACTOR PRICES CONVERGE WITHIN THEIR COUNTRY,
SUCH GROWTH CAN BE EXPECTED TO GRADUALLY TAPER OFF. RELATED TO THIS SITUATION IS THE
PHENOMENON OF SPILLOVER GROWTH, IN WHICH ECONOMIC ACTIVITY BRANCHES OUT FROM EXISTING
DOMINANT ECONOMIC HUBS INTO TIER 2 OR TIER 3 CITIES AS THEIR COUNTRY IS EMERGING CENTER, IN THE
PROCESS SHIFTING ECONOMIC GEOGRAPHY WITHIN THIS COUNTRY
• LOCAL GOVERNMENT FOCUSES MOSTLY ON PROVIDING PUBLIC GOODS, SUCH AS ENABLING
TRUNK INFRASTRUCTURE AND PHYSICAL SECURITY, BUT OTHERWISE DOES NOT DIRECTLY
INTERVENE IN INVESTMENT ATTRACTION OR COMPANY FORMATION AND GROWTH
• PRIVATE SECTOR LEADERSHIP MAY IN PART OR IN WHOLE RESULT FROM THE ABSENCE OF
GOVERNMENT INVOLVEMENT OR GOVERNMENT’S INABILITY TO PERFORM CERTAIN
ECONOMIC DEVELOPMENT FUNCTIONS.
• CAPABLE AND HIGHLY ENGAGED LOCAL PRIVATE SECTOR IS ESSENTIAL, AND IT MAY DRAW ON
NATIONAL OR STATE-LEVEL SUPPORT TOOLS AND PROGRAMS
• USING RIGOROUS ANALYTICS TO INFORM STRATEGY DEVELOPMENT
 A PRIVATE REAL ESTATE DEVELOPER PART OF A LARGER CONGLOMERATE) IDENTIED THE POTENTIAL
TO CAPTURE SPILLOVER GROWTH FROM INDIA’S TIER 1 CITIES, RESULTING IN TREMENDOUS
OPPORTUNITIES TO ATTRACT INVESTMENT AND CREATE JOBS IN THE CITY.
• BUSINESS CLIMATE IMPROVEMENTS
• INDUSTRY SECTOR TARGETING
• INVESTMENT ATTRACTION
• ENTREPRENEURIAL ASSISTANCE
• EXPORT FACILITATION
• PLACE MAKING AND BRANDING
• STRENGTHENING OF HUMAN CAPITAL
• A DEVELOPMENT FIRM, KGISL INSTITUTE OF TECHNOLOGY, WORKED WITH CITY OFFICIALS TO FORM A PIPELINE OF
CLIENTS DURING THE CONSTRUCTION OF A PRIVATE ECONOMIC ZONE
• KGISL STAFF MEMBERS UNDERTOOK AN EXTENSIVE, SYSTEMATIC ANALYSIS OF MARKET TRENDS AND PLAYERS IN THE O
SHORING WORLD AND, IN PARTICULAR, THE ACTIVITIES OF MULTINATIONAL CORPORATIONS LOCATED IN INDIA
• OBSERVING THAT SOME COMPANIES HAD RUN OUT OF ROOM TO GROW
• IN PLACES SUCH AS BANGALORE OR CHENNAI, KGISL PITCHED COIMBATORE AS A VIABLE ALTERNATIVE, GIVEN THAT
ITS HIGHLY EDUCATED, ENGLISH-SPEAKING WORKERS WERE AVAILABLE AT SIGNIFICANTLY LOWER COST THAN IN TIER
1 CITIES
• E ZONE HAS BEEN ABLE TO ATTRACT COGNIZANT, DELL, AND BOSCH AMONG ITS TENANTS AND EVENTUALLY
AMASSED 20,000 JOBS, THANKS IN PART TO ITS ABILITY TO CUSTOMIZE FACILITIES AND SERVICES TO INCOMING
FIRMS SPECIFIC NEEDS
• COIMBATORE ENJOYS A HIGHLY SUPPORTIVE ECOSYSTEM FOR ENTREPRENEURS
• CITY IS MOSTLY FAMILY-OWNED SMALL AND MEDIUM ENTERPRISES COMPETE WITH EACH OTHER FOR BUSINESS
OPPORTUNITIES
• COIMBATORE DISTRICT SMALL-SCALE INDUS- TRIES ASSOCIATION (CODISSIA) PLAYED THE KEY ROLE
IN DRIVING THESE INITIATIVES
• CODISSIA INCLUDES MORE THAN 4,000 SMALL AND MEDIUM ENTERPRISES
• IT REPRESENTS ENTREPRENEURS AT GRIEVANCE PANELS AND ADVISES THEM ON TAXES, LICENSING, AND EXPORTING.
• OTHER ADVICE IS PROVIDED THROUGH PARTNERSHIPS WITH LOCAL TECHNOLOGY AND ENGINEERING INSTITUTIONS
AND THROUGH A DEDICATED SMALL INDUSTRIES TESTING AND RESEARCH CENTRE, WHICH WAS LAUNCHED IN 1986
 HOW COIMBATORE USED SKILLS AND INNOVATION

• COIMBATORE’S PRIVATE SECTOR GROWTH IS DIRECTLY LINKED TO ITS THRIVING COLLECTION OF VOCATIONAL TRAINING
INSTITUTIONS THAT PRODUCE A WORKFORCE WITH SKILLS RELEVANT TO INDUSTRY NEEDS
• COIMBATORE’S HIGHER EDUCATIONAL INSTITUTIONS WERE CREATED BY THE CITY’S FAMILY-OWNED RMS AND THUS ARE SHAPED
DIRECTLY BY CURRENT INDUSTRY NEEDS, IN ADDITION TO HELPING TO DEVEL- OP FUTURE POTENTIAL IN NEW AREAS. EY O ER
PRACTICALLY ORIENTED TECHNICAL CURRICULA DEVELOPED IN CONSULTATION WITH FOR-PRO T COMPANIES.
• LOCAL ENGINEERING STUDENTS SPEND PART OF EACH SCHOOL DAY ON THE SHOP OOR AS WELL AS IN CLASS. IS REGIME IS DISTINCT
FROM SCHOOLS ELSEWHERE IN TAMIL NADU. STUDENTS GRADUATE WITH RELEVANT APPLIED SKILLS AND EXTENSIVE MANUFACTURING
EXPERIENCE
• COIMBATORE’S ENGINEERING SCHOOLS PRODUCE ENGINEERS AND MANAGERS AS WELL AS SHOP SUPERVISORS AND MACHINE
OPERATORS. E CITY HAS 10 UNIVERSI- TIES, 60 ENGINEERING COLLEGES, AND 30 POLYTECHNIC AND INDUSTRY TRAINING INSTITUTES
THAT PREPARE GRADUATES WITH TECHNICAL SKILLS AND SPECIALIZE IN FUN- DAMENTAL DISCIPLINES SUCH AS PHYSICS AND
MATHEMATICS.
 WHAT DID COIMBATORE ACHIEVE OUT OF IT?

• COIMBATORE’S COLLEGES PRODUCE “150,000 EMPLOYABLE GRADUATES EVERY YEAR,”

ACCORD- ING TO A LEADING CITY CONGLOMERATE

• ABOUT 1 IN 10 OF INDIA’S ENGINEERING COLLEGES ARE LOCATED IN COIMBATORE, PUTTING

IT ON PAR WITH OR ABOVE MANY CITIES THAT ARE LARGER IN SIZE, INCLUDING PUNE AND
JAIPUR
• STRONG MAYORAL (OR EQUIVALENT) COMMITMENT TO IMPROVING CITY LIVABILITY
• FAVORABLE NATIONAL DEVELOPMENTS
• FUNDING AND TECHNICAL ASSISTANCE FROM INTERNATIONAL DONORS
• SUPPORTIVE NATIONAL INITIATIVES
• INCREASED NUMBERS OF FOREIGN VISITORS
• CITY WITH LESS ORGANIZED FORMAL ECONOMIC DEVELOPMENT INSTITUTIONS HAD A
STRONGER FOCUS ON THE NEEDS AND EXPANSION OF EXISTING FIRMS
• INDIA’S RISING IT POWER HOUSE
• THE INDIAN MARKET IN AGRICULTURE AND DOMESTIC PUMPS IS VAL- UED AT RS.4,000 CRORE
A YEAR, AND COIMBATORE ALONE ACCOUNTS FOR RS.2,000 CRORE. PUMP CITY OF ASIA
• RELIABLE, TECHNICALLY COMPETENT, COMPETITIVE, AND ENTERPRISE OUTSOURCING CITY