According to Hurun Research's 2024 Global Rich List, Mumbai has become Asia's billionaire capital for the first time with 92 billionaires residing here.
Often regarded as the commercial capital of India, Mumbai is currently the third ranked city globally to host maximum billionaires.
Derived its name from goddess Mumba devi, Mumbai (previously Bombay), is formed by joining seven islands, namely Colaba, Bombay Island, Mazagaon, Parel, Worli, Mahim, and Old Woman’s Island. For centuries, Mumbai has been the trade window for India with western countries.
In this article, we will discuss how Mumbai has become the commercial capital of India.
Let's understand how growth started in earlier days.
Bank of Bombay started in 1840: This was a revolutionary step in British-ruled India. Establishing Bank of Bombay for financial services in 1840 has been proved to be the turning point for Mumbai’s growth.
Establishment of the Bombay Stock Exchange in 1875: This is a major milestone in transforming Bombay into nation's financial hub. It was Asia’s first stock exchange. This promoted the growth of secondary financial services including brokerages, depositories, custodians, as well as investment banks in Mumbai. Now, Bombay Stock Exchange (BSE) is the 10th largest stock exchange market globally.
Establishment of Reserve Bank of India (RBI) in 1935: In accordance with the Reserve Bank of India Act (1934), RBI was established in Bombay, 12 years before independence. This helped in developing and stabilizing India’s financial infrastructure.
Establishment of Development Bank of India (DBI) in 1964: In post independence era, this was revolutionary step. It started to support small industries and agriculture.
Economic Liberalization in the 1990s: This transformed Indian economy and opened the door for foreign investments and trades. This step consequently helped growing India's Startup ecosystem in 21st century.
Inauguration of National Stock Exchange (NSE) in 1994: This introduced electronic trading system and streamlined the overall buying and selling process.
For any business or organisation, location plays a huge role. Located in west coast of India, Mumbai is strongly connected with other cities by air, water and rail. As BSE was established first in Bombay, buyers and sellers came to visit here frequently which eventually added more value. Mumbai has numerous Special Economic Zones (SEZ) to promote industrialization and economic growth via sustainable development. Because of the advanced ports, import and export became easier with foreign countries.
Over the years, the Government of Maharashtra has made the state and city buisness friendly with several policy and incentives. This helped investors and organisations to grow together.
Mumbai hosts 92 billionaires, adding 25 more wealthy individuals than the last year. The total wealth of billionaires in Mumbai stands at $445 billion, which is 47% higher than 2023. Billionaires including Reliance industries owner Mukesh Ambani, Adani group's Gautam Adani, D-mart owner Radhakishan Damani, Shapoor Mistry of Shapoorji Pallonji Group, Sun Pharma founder Dilip Sanghvi, and many more reside in Mumbai.
Over 20 unicorns of India are Mumbai based, as per Private Wealth Hurun India Future Unicorn Index 2023. Some of the common Mumbai based start-ups are BookMyShow, BillDesk, Dream11, Haptik, Hungama, Pepperfry, Nazara Technologies, Upstox, PharmEasy, Upgrad, Shaadi.com, and Zepto.
The rise of Mumbai as India’s financial powerhouse is definitely not an accident. Over 150 years, several strategic moves were implemented to establish it as the center commerce in India.
