The rapid pace of urbanisation and changes brought about by new norms for FDI in retail will accelerate the growth of the entertainment and amusement industry in the country, according to global consultancy Aecom.
According to estimates, the country’s urbanisation is projected to grow from the current 30 per cent to 60 per cent by 2050. This will mean creation of enough urban space in existing cities and new centres equivalent to America’s current population, Amitabh Barthakur, Principal, Regional Director, Planning, Design and Development, India, for Aecom, said.
Speaking at a conference here, he said FDI in retail will enable MNC entry into the country’s urban centres and this in turn will make entertainment a major part of the growth story.
“Entertainment will be a big differentiator in the retail centres that will come up in future. However, the cost of land in urban areas and difficulties in acquisition will pose a challenge to developers," he said.
Interacting with participants at TiLE India hosted here, he said the high density mixed real estate and retail will get designed to cater to the needs of the urban population. Most of leisure time spenders now end up hanging out at malls, without even having to shop, for lack of quality entertainment.
TiLE refers to Trends, Technology, Design in Liesure & Entertainment.
The heavy taxation has been one of the major hurdles for development of large format amusement and theme parks. With a large population, India has barely 150 amusement parks, mostly in the small format, he said.
And it has become increasingly tough to set up a large theme park due to difficulties in acquiring land. Therefore, the only way out is to execute it in the PPP mode, he said.
Richard Hyde, British Deputy High Commissioner, Hyderabad, said UK Trade and Investment will play the role of matchmaker between companies to promote collaboration and partnership. A number of UK companies are keen to share their expertise.
Hyde said over 700 Indian businesses operate in the UK accounting for 90,000 jobs, with the Tata group being the largest corporate employer.