Gurgaon emerging as major financial hub

10 Jan 11

GURGAON: Gurgaon is fast developing as an important financial hub and emergence of such new centres always helps in de-congesting the finance market, said C Rangarajan, noted economist and financial advisor to the PM.

Academicians and economists spoke on the future of Indian finance market, with comments on the rapid development of Gurgaon as a corporate and real estate hub, at the FINCON 2011 on Saturday.

Speaking to management students at MDI Gurgaon, they also highlighted the need to bring about awareness among the public on how to avoid the dreaded bubble that arises out of such a fast pace of development.

Rangarajan further added that we need to expand to the larger masses with innovative financial products, and yet make sure that there are efficient regulations in place to maintain stability.

Dr Chinmoy Ghosh, HOD, Department of Finance, University of Calicut Business School, remarked, In Gurgaon, much of the growth that happened in the last two decades has penetrated to the middle class, which is a major reason behind the accelerating growth witnessed by the city. However, now people have started looking at real estate solely as an investment, and not as something that should be consumed.

He further added that the cost of an average 3 to 4-bedroom accommodation in the city has crossed Rs 1 crore, whereas the average salary of an executive is not more than Rs 12-15 lakh. The gap has pushed a chunk of the population towards the outskirts of Gurgaon, where basic infrastructure is far lagging behind.