Free Minds & Free Markets

Gurgaon: India's Private City

An Indian city's embrace of globalism, trade, and hypergrowth is a living response to the protectionist impulse sweeping America.

The last time I was in India, it was a familiar scene. The rickshaws rumbling through busy bazaars. Shoppers haggling over everything from gemstones to silk sarees. Pilgrims prostrating their way to salvation. Authentic street food, enhanced by locally-sourced infectious pathogens.

This time around, I knew the country had changed. I wanted to see the effects of thirteen years of market reform and hypergrowth since my last visit. So I summoned an Uber (already something new) and headed 15 miles south of my Delhi hotel.

As the crumbling roads of the capital city opened up into a 32-lane expressway, the old India I thought I knew, gave way to the future. I'd arrived in the city of Gurgaon.

It's hard to imagine, but twenty-five years ago, there was nothing here. No high-rises. No kitschy shopping malls with Vegas-like trompe l'oeil ceilings. No 27-hole Jack Nicklaus signature golf courses. Stretching back to medieval times, Gurgaon was nothing more than a plot of rocky soil with a small marketplace. Until six years ago, it didn't even have a municipal government. So what happened?

When Delhi banned private real estate development in the 1950s, Kushal Pal Singh began buying land south of the city limits. His company, Delhi Land and Finance, offered cash and equity stakes to farmers in Gurgaon. Many of these cowherds became instant crorepatis—millionaires, in the local lingo—while KP Singh would become the fifth richest man in India by the turn of the century.

The state of Haryana eased land use restrictions, making it easy for developers to use their land as they saw fit. But once land was converted from farmland to commercial use, it was still classified as rural. That's how Gurgaon ended up as a city without a city government. Haryana also allowed women to work past 6pm—a bold policy decision in a socially conservative country. Without flexible labor laws, India would never have been able to develop its famous call center industry, where phone operators must work through the night in order to match times around the world.

Maruti was the first to arrive with an auto manufacturing plant in the 1980s. As India stepped back from socialism in the 90s, foreign investment bypassed Delhi, and poured into Gurgaon. When General Electric set up shop, hundreds of multinationals followed. Soon Gurgaon was generating middle class jobs by the hundreds of thousands. Today, it boasts an absurd 30 percent annual GDP growth and the third highest per-capital income in India.

Over time, other developers have entered the market, competing with DLF, and diluting its share of Gurgaon. But DLF remains the dominant provider of roads, sewage systems, security, and India's only private fire department.

While Gurgaon isn't exactly crime free—the crime rate is on par with Phoenix, Arizona—it doesn't lack for protection. 35,000 private security guards keep a watchful eye on the city, compared with 3,000 public officers.

Gurgaon's services and cleanliness are like nothing else I've seen in the country. India's only privately run metro system is fast, modern, and efficient. Employees compulsively sweep floors that already look spotless. It's unclear if Gurgaon's metro turns a profit. But as it increases the value of land owned by DLF and others, it may have already accomplished its mission.

I'd like to tell you that Gurgaon has solved all of India's problems. But even here, in the beating heart of hypergrowth, the worst of Old India stubbornly refuses to die. Sixteen percent of Gurgaon's population lives in slums. If that seems like a lot to you, the shocker is that it's less than the average Indian city. There are 150 million fewer poor people in India since my last visit. That's half of the population of the United States, lifted out of the slums.

India's achievements over the past decade are awe-inspiring. But as my own country turns its back on the same global markets that transformed a rocky patch of farmland into a metropolis of two million souls, I can only hope that Gurgaon has many years of hypergrowth yet to come.

Produced, shot, edited, and narrated by Todd Krainin.

Music: "Belief" by Silent Partner, "Dhaka" by Kevin MacLeod, "Bollywood Blades" by Professor Kliq.

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  • Ron||

    when it comes to trade you are looking at the winner side of bad trade deals that Americans have made. If all of Americas trade partners had to obide by American regulations and taxes then these countries would still be shit holes. this is commentary on American regulations and taxes and not the fault of the other nations.

  • Deven||

    Economics isn't a zero sum game. Perhaps they wouldn't have been doing quite as well, but it doesn't mean they wouldn't be doing great with or without "bad trade deals". The difference here is the city's policies, not America's.

  • Eternal Blue Sky||

    *Article on Reason about India

    *Author isn't Shikha

    Wait, what??

  • ||

    A clear-cut example of Cultural Appropriation and Sex Discrimination. And Racism stemming from White Privilege.

  • I can't even||

    The story doesn't really match the headline. This has less to do with free trade than good city government. Many big American cities are sinking under the weight of their corrupt, socialist policies. Clean, low-regulation government is the story.

  • Eternal Blue Sky||

    "This has less to do with free trade than good city government."

    "But once land was converted from farmland to commercial use, it was still classified as rural. That's how Gurgaon ended up as a city without a city government."

    I'm not sure if you're an AnCap making a clever joke about "the only good government is no government", or you just didn't bother to read the article yourself.

  • I can't even||

    Okay, I give. How do Indian zoning policies relate to globalism and trade? How is it a living response to the protectionist impulse sweeping America.

  • ||

    Is, "Sholay," Hindi for, "Bollywood Miami Vice - Starring Mark Hamil,"?

  • Pro Libertate||

    Or an odd combination of Hamil and Pacino.

  • ||

    It's Hamil post-Car Accident, and is ROTJ-era Hamil with a bad dye job. It fits, since he was D-Listing and looking for work, and the voice-over lucre had yet to roll in.

  • Rhywun||

    OT: So your sister gets caught perpetrating a blatant TDS hoax. What is the first thing you do? Why, post a deranged brain-dump on Facebook, of course.

    She said anti-Trump posts made by her family on their Facebook pages forced the cops and the media to discredit their story.
  • ||

    Yep, Troomp shaming. Clearly an effective technique that reaps untold riches and desirable results.

  • Zunalter||

    blatant TDS hoax

    Not familiar, could you tell me what that is?

  • Zunalter||

    Sorry, I read the story so I know what the hoax was, but just not familiar with what TDS stands for.

  • Cynical Asshole||

    TDS = "Trump Derangement Syndrome"

  • Zunalter||

    Ah, thank you!

  • ||

    But you have to live in India.

  • AlmightyJB|| ~ furiously scribbles notes on how to pick up Indian girls.

  • ant1sthenes||

    Most probably do not look like Bollywood starlets.

    The More You Know.

  • Diane Reynolds (Paul.)||

    Until six years ago, the metropolis of two million people didn't even have a municipal government.

    *checks flight schedules*

  • David Emami||

    But... but Somalia!

  • Mark P||

    We will be traveling to India to see New Dehli and Gurgaon; so we'll see. We had to take vaccines for typhoid, malaria and hepatitis A, so India still has third-world diseases. Also not sure how demonetizing the 500 and 1000 Indian rupee notes and placing high import taxes on gold is helping the Indian economy. The globalists want a cashless society so they can have complete control over the economy, whereas I am sure Trump recognizes the freedom that goes along with cash and gold.

  • PDory||

    This is a nice piece you did. Even though things are far from perfect there, this shows there is hope for more positive changes in the future.


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