Did you know what makes Mumbai the most prominent financial capital of India? It’s the geographical location! Mumbai port on the west coast side made it a significant economic hinge and a vital trade window to the west.
Therefore, these two trade businesses made Mumbai an affluent and exotic business hub. Today, being the commercial, Financial, and Entertainment capital of India, Mumbai standalone provides 5% of India’s GDP and a maximum of 25% of Industrial output.
The city is an accommodation of approx 12.5 million people after Delhi. However, apart from those reasons, many other reasons are there, making Mumbai India’s most cherishing financial capital. Let’s get started!
Why Mumbai is Called Financial Capital of India?
Briefly, it can be said that, for numerous decades, Mumbai has been that outstanding hub for countless financial services and businesses. It is a top-notch hub for various financial institutions and also one of the most excellent centers of commerce and trade.
1. The Stock Exchanges: BSE & NSE
Both the Bombay Stock Exchange and the National Stock Exchange are situated in the heart of Mumbai’s Metropolitan Region. Here all types of nation-level trading occur! Every day thousands of securities visit here for trading from 9.15 am to 3.30 pm.
These ancient exchanges have witnessed a diverse phase of ups and downs in the stock market and from the contagious Bubonic Plague of 1896 to 2008 to the recent COVID-19 pandemic of 2020. However, the Nariman Point, Dalaal Street, and the Bandra Kurla complex are the crucial financial hubs of the city.
So, you may easily contemplate the picture of those eminent banks, financial organizations, and corporate houses that Mumbai is surrounded with!
2. Land of Scintillating Entertainment: Bollywood
Who does not know about Bollywood movies make colossal revenues every year? “One of the movies of Deepika Padukone crossed over 100 crores in just three days” and “Katrina Kaif’s movie got immense appellation at the box office,”
These are often the newspaper headlines of the B-town. Not just massive revenues earned, the costs are given into making the deluxe cars, saving the city enormously contributes to the country’s economic growth. The tinsel town, Bollywood, emerged from the old word “Bombay.” Well, what do you think, we must call it Mollywood now, right? Just kidding!
3. Authoritative Bodies: SEBI & RBI
Mumbai is also one of the most extensive lands of the authoritative bodies RBI & SEBI, despite being the epicenter of major economic affluence. The RBI observes and regulates the entire banking sector, ranging from printing notes to ensuring ethical modulations. It also plays a decisive role in molding governmental strategies and policies.
On the other hand, The Securities and Exchange Board of India (SEBI) is more precise to the modulations in India’s commodity and security markets. To put it simply, it overlooks all the primary financial middlemen for the protection of the investors. It is highly regarded as the custodian of the finance sector.
4. A Leading Hub to Crucial Industries
In 1854, the textile industry renaissance made Mumbai one of the leading hubs of textile industries, which has employed nearly a million workers. So, until the 70s, Mumbai owed its development to the textile mills, but the economy has greatly expanded since then.
The recent day major industries include gems, finance, healthcare, jewelry making, and the ever-developing IT industry. Despite those conglomerates mentioned earlier, most of the fortune worldwide 500 organizations have emerged from Mumbai. Therefore, making it the most extravagant city in India and the 6th global city in the world.
In a nutshell, employment comes after the significant growth of the industries! Mumbai possesses a humongous amount of proficient and non-proficient labor population, and countless people arrive here to give a wing to their careers.
Mumbai, being the most populous and capital financial city, several industries produce colossal revenues via tax collections. So, no other city has surpassed Mumbai to acquire the appellation of the vital Financial Capital.
Here we have mentioned some leading reasons why Mumbai is known as the financial capital of India. I hope it helps! Lastly, it is a top-notch place of indeterminable influence in India’s economic and political life.