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Cities- Their economic contribution in relation to their population share


Neural City Data Blog


Cities are where economies come alive. They concentrate talent, infrastructure, and opportunities—and in doing so, shape national growth trajectories.


But how concentrated should growth be? Are some countries more dependent on a handful of metros than others?


To explore this, we compared the top 3, 5, and 10 highest-GDP cities in the world’s four largest economies: the United States, China, Germany, and India. We then looked at how much of the national GDP these cities produce relative to the population they host.


Each country uses slightly different “city” definitions.

  • U.S. numbers are for entire metropolitan areas

  • China’s include wide administrative territories (so Chongqing looks very large)

  • Germany uses city proper (so populations/GDP look smaller)

  • and India uses metros/urban agglomerations.

The figures are not strictly apples-to-apples, but useful for showing concentration patterns.


What We Did

  • City Selection: For each country, we identified the largest metros by GDP (e.g., New York, Los Angeles, and Chicago in the US; Shanghai, Beijing, and Shenzhen in China; Berlin, Hamburg, and Munich in Germany; and Delhi, Mumbai, and Bengaluru in India).

  • Grouping: We calculated GDP and population shares for the top-3, top-5, and top-10 cities in each country.

  • Comparison: By dividing GDP share by population share, we assessed how much more (or less) economic output these cities generate compared to their population weight.


Early Insights

  1. India’s metros are extreme outliers. The top-10 cities account for only ~9% of the population but nearly 28% of GDP, a ratio of ~3×—far higher than the US (~1.5×), Germany (~1.5×), or China (~1.8×).

  2. Urbanisation differs sharply.  Despite India’s visibly crowded metros, a far smaller share of Indians live in big cities compared to the US or China. This means India’s growth is being carried by relatively fewer urban residents.

  3. Social vs spatial inequality diverges. India has the lowest Gini coefficient among the four countries, suggesting relatively equitable incomes. Yet, spatially, its growth is the most concentrated—signaling that inequality looks very different when measured across people vs across places.


The following three graphs together reveal not just how much cities drive national output, but also how India’s story diverges sharply from global peers.


Graph 1: City GDP as % of National GDP / City Population as % of National Population
Graph 1: City GDP as % of National GDP / City Population as % of National Population

This bar graph compares how much more economic output the top 3, 5, and 10 cities in each country generate relative to the share of people they host.

  • If the ratio = 1 → cities contribute GDP equal to their population share.

  • If >1 → cities punch above their weight in economic terms.


Country snapshots

  • Germany & USA: Ratios hover around 1.4–1.6. Their biggest cities produce a bit more GDP than their population share, but the difference is modest.

  • China: Starts high (2.25 for top-3) but flattens quickly (~1.78 by top-10). Economic growth is distributed more evenly across provinces and mid-size cities.

  • India: Stands out. Ratios are ~3 for top-3, top-5, and top-10. This means India’s top metros contribute nearly 3× more GDP than their share of population—a level of concentration unmatched by peers.


Why India’s Difference Is Huge

At first glance, the gap between 3 (India) vs 1.5–1.8 (others) seems like “just 1–1.5 points.” But in absolute dollar terms, it’s enormous:

  • India’s nominal GDP FY 2022–23 ≈ ₹272 lakh crore (~$3.3 trillion).

  • Top-10 cities: 27.6% of GDP ≈ ₹75 lakh crore (~$900 billion).

  • Their population share: 9.3% of Indians (~133 million people).

  • If India’s metro concentration looked more like China’s (~1.8× ratio), their GDP contribution would be closer to ₹45–46 lakh crore.

  • The extra ~₹29–30 lakh crore (~$350–360 billion) concentrated in metros is equal to the entire economy of a mid-sized G20 country.


The Indian bars on the chart matter: the “small” numeric difference hides a huge real impact.


Indian Perspective

  • Growth Concentration Risk: With ~3× over-representation, metros like Delhi, Mumbai, Bengaluru, Chennai, and Hyderabad are carrying a disproportionate share of the economy. Any infrastructure breakdown here (floods, pollution, transport collapse) hits national growth.



Graph 2: GDP share vs Population share in Top 3, 5 and 10 Cities
Graph 2: GDP share vs Population share in Top 3, 5 and 10 Cities

About the graph

  • X-axis: Share of national population living in the top 3, 5, or 10 cities.

  • Y-axis: Share of national GDP produced in those same cities.

  • Each country has 3 dots (Top-3, Top-5, Top-10), joined by a dotted line.

  • The 45° diagonal would represent “GDP share = Population share”. Points above it mean cities are producing more GDP relative to their population.


What can we learn from this graph

1. India’s Low Urbanisation

  • India’s dots sit far left compared to the USA, China, and even Germany.

  • That means India’s top cities host a smaller share of the national population.

  • Despite cities being visibly crowded, the country as a whole is less urbanised.

  • By contrast, the USA has much higher urbanisation: its top cities alone account for 15–25% of the population.

2. India’s Steep Slope

  • India’s line rises much more sharply than other countries.

  • This means for every extra % of population that lives in big cities, India gets disproportionately more GDP.

  • Put differently: Indian metros are economic overachievers, producing far more output per person than the rest of the country.

3. Comparing Peers

  • Germany: Sits closer to the 45° line → its cities produce GDP roughly in line with their population share. Economic activity is more evenly spread.

  • China: Higher than Germany, but its slope flattens as you go from Top-3 to Top-10, showing that secondary cities are also pulling weight.

  • USA: High population shares, high GDP shares, but slope is more balanced. The growth is distributed across many urban regions.

  • India: Small population share, big GDP share → extreme concentration.


Why It Matters for India

  • National growth depends on metros. Delhi, Mumbai, Bengaluru, Chennai, and Hyderabad drive a vastly outsized share of GDP.

  • Infrastructure risk: Because economic weight is so concentrated, any disruption in these metros—transport bottlenecks, climate shocks, flooding—has a magnified national impact.

  • Policy blind spot: Gini coefficients and welfare transfers may make India look “equitable” on income distribution, but spatial inequality in growth is stark.


Graph 2: GDP% ÷ Pop% bars with Gini line overlaid
Graph 2: GDP% ÷ Pop% bars with Gini line overlaid

Gini coefficient is calculated from household income (or consumption) surveys, not from where GDP is produced.


In India, most households are still in rural or semi-urban areas, and their consumption levels are relatively similar at a low base. This flattens the distribution curve and produces a lower Gini.


In contrast, the GDP concentration analysis we did is about geography of production (metros vs rest). These are two different slices:

  • Functional inequality: Between households across the whole population → Gini.

  • Spatial inequality: Between cities vs. the rest → our GDP share vs population ratio.


India’s Gini coefficient is the lowest (0.255) → income inequality looks better than China, USA, or Germany.

This mismatch highlights that national inequality metrics miss the spatial story. India’s welfare schemes and subsidies compress consumption differences at household level, but metros still carry outsized economic weight.


Role of socialist & welfare state policies

  • India has a long tradition of redistributive policies: food subsidies (PDS), employment guarantees (MGNREGA), free school meals, farm loan waivers, DBT transfers, etc.

  • These programs compress consumption inequality (people across rural/urban areas have more similar minimum consumption baskets), which pushes the Gini downward.

  • In OECD terms, these are like in-kind transfers and subsidies that reduce observed gaps, even though underlying productivity is highly unequal.


Germany & USA

  • Both countries have lower city concentration ratios (1.4–1.6) → their growth is spread more evenly across regions.

  • Yet, the US has the highest Gini (0.375) → inequality shows up at the household level, not in spatial concentration.

  • Germany has both low spatial concentration and low income inequality, a sign of more balanced development.

China

  • City concentration is moderate (1.7–2.2), and Gini (0.357) is higher than India’s but lower than the US.

  • China’s pattern shows: strong urban centres but also large provincial economies, so the gap between cities and the rest isn’t as extreme as India’s.


Why This Matters for India

  • India’s metros = economic engines, but they are also single points of failure.

  • National inequality stats (Gini) can give a misleading sense of “equity” while masking the fact that growth is geographically narrow.



Graph 4: Share of Top 3, Top 5 and Top 10 GDP Cities in National GDP
Graph 4: Share of Top 3, Top 5 and Top 10 GDP Cities in National GDP


Graph 5: Share of Top 3, Top 5 and Top 10 GDP Cities in National Population
Graph 5: Share of Top 3, Top 5 and Top 10 GDP Cities in National Population



Data: Sources, Notes, Caveats


Here’s the list of the top 3, 5, and 10 GDP-leading cities/metros we used in the analysis for each of the four countries.


India (FY 2022–23, nominal GDP, metros/urban agglomerations)

  • Top 3: Delhi, Mumbai, Bengaluru

  • Top 5: +Chennai, Hyderabad

  • Top 10: +Kolkata, Ahmedabad, Pune, Surat, Jaipur

China (2023, nominal GDP, city administrative units)

  • Top 3: Shanghai, Beijing, Shenzhen

  • Top 5: +Chongqing, Guangzhou

  • Top 10: +Chengdu, Hangzhou, Wuhan, Nanjing, Suzhou

Germany (2021, nominal GDP, city proper)

  • Top 3: Berlin, Hamburg, Munich

  • Top 5: +Frankfurt, Cologne

  • Top 10: +Hanover Region, Stuttgart, Düsseldorf, Nuremberg, Bremen

United States (2023, nominal GDP, metropolitan statistical areas / MSAs)

  • Top 3: New York, Los Angeles, Chicago

  • Top 5: +San Francisco Bay Area, Dallas–Fort Worth

  • Top 10: +Washington DC, Houston, Boston, Atlanta, Seattle


Note on comparability:

Each country uses slightly different “city” definitions.

  • U.S. numbers are for entire metropolitan areas

  • China’s include wide administrative territories (so Chongqing looks very large)

  • Germany uses city proper (so populations/GDP look smaller)

  • and India uses metros/urban agglomerations.

The figures are not strictly apples-to-apples, but useful for showing concentration patterns.


City GDP Figures


Country

GDP Top 3 Cities %

Pop. Top 3 Cities %

(GDP% / Pop. %) Top 3 Cities

GDP Top 5 Cities %

Pop. Top 5 Cities %

(GDP% / Pop. %) Top 5 Cities

GDP Top 10 Cities %

Pop. Top 10 Cities %

(GDP% / Pop%) Top 10 Cities

China

10.3

4.57

2.25

15.1

8.18

1.85

23.3

13.12

1.78

Germany

11.9

8.44

1.41

15.8

10.69

1.48

22.2

14.17

1.57

India

14.1

4.72

2.99

19.4

6.29

3.08

27.6

9.28

2.97

United States

20.1

12.5

1.61

26.2

16.3

1.61

37.9

25

1.52


United States (Metropolitan areas, nominal USD, 2023)

  1. New York metro — $2,608.1B Wikipedia

  2. Greater Los Angeles — $1,618.2B Wikipedia

  3. San Francisco Bay Area — $1,201.7B Wikipedia

  4. Chicago metro — $919.2B Wikipedia

  5. Dallas–Fort Worth — $744.7B Wikipedia(Primary data ultimately from U.S. BEA; see release overview.) Bureau of Economic Analysis

China (City administrative units, nominal USD, 2023; NBS-based)

  1. Shanghai — $729.5B

  2. Beijing — $672.0B

  3. Shenzhen — $495.3B

  4. Guangzhou — $436.0B

  5. Chongqing — $434.4B Wikipedia

Germany (City proper, nominal EUR, 2021)

  1. Berlin — €165.46B

  2. Hamburg — €130.87B

  3. Munich — €128.75B

  4. Frankfurt am Main — €74.09B

  5. Cologne (Köln) — €66.69B(Most recent consolidated city-level table is 2021.) Wikipedia

India (Metropolitan areas, nominal USD, FY 2022–23)

  1. Delhi NCR — $195.6B

  2. Mumbai (MMR) — $170.69B

  3. Bengaluru — $118.13B

  4. Chennai — $96.18B

  5. Hyderabad — $84.13B Wikipedia


Rank

Metro (MSA)

USD (bn)

1

New York–Newark–Jersey City

2,298.9

2

Los Angeles–Long Beach–Anaheim

1,295.4

3

Chicago–Naperville–Elgin

894.9

4

San Francisco–Oakland–Berkeley

778.9

5

Dallas–Fort Worth–Arlington

744.7

Source: BEA metro GDP 2023 table (values listed are 2023 dollars as reported by BEA for real GDP).


Rank

City

RMB (bn, 2023)

USD (bn, 2023 FX)

1

Shanghai

5,140.4

721.8

2

Beijing

4,735.4

664.9

3

Shenzhen

3,490.3

490.1

4

Chongqing

3,061.4

429.9

5

Guangzhou

3,072.4

431.4

Sources: 2023 city GDP list; 2023 average FX from NBS (7.1217 RMB per USD).

China (converted from 2023 RMB using CNY/USD avg 2023 = 7.1217)


Rank

City

EUR (bn, 2021)

USD (bn, 2023 FX)

1

Berlin

165.46

179.8

2

Hamburg

130.87

142.3

3

Munich

128.75

139.9

4

Frankfurt am Main

74.09

80.5

5

Cologne (Köln)

66.69

72.5

Sources: 2021 city GDP table; 2023 EUR per USD ~0.92 (World Bank WDI table 4.16). Wikipedia+1

Germany (converted from 2021 EUR using 2023 avg EUR/USD ≈ 1.087)


Rank

Metro Area

INR (bn, 2022–23)

USD (bn, 2023 FX)

1

Delhi NCR

15,375.37

186.2

2

Mumbai (MMR)

13,417.15

162.5

3

Bengaluru

9,285.52

112.5

4

Chennai

7,560.56

91.6

5

Hyderabad

6,613.10

80.1

Sources: 2022–23 metro GDP list; 2023 INR/USD average from FRED (AEXINUS).

India (converted from FY 2022–23 INR using 2023 avg INR/USD = 82.5708)


Nominal GDP and Base Year

China

  • Base year: None in the same sense as BEA.

  • China’s National Bureau of Statistics (NBS) reports GDP of cities in current prices (nominal, RMB) each year.

  • There are also “constant price” (real) GDP growth rates, but those are not published at the city level the way US chained dollars are.

  • So the Shanghai, Beijing, Shenzhen etc. figures we used are nominal 2023 RMB, not inflation-adjusted.


Germany

  • Base year (for real GDP): Destatis uses 2015 = 100 as the reference year in their national accounts.

  • But for city-level GDP, the most accessible tables (like Berlin, Hamburg, Munich, etc.) are usually published in current prices (nominal EUR).

  • So the 2021 Berlin/Hamburg numbers we converted are nominal EUR 2021, not chained. If you needed real growth, they’d link it back to 2015 prices.


India

  • Base year: India’s national accounts use 2011–12 as the base year for real GDP at constant prices (both national and state).

  • But city/metropolitan GDP is not officially published by CSO/MoSPI. Instead, think tank/economic surveys compile them—almost always in current prices (nominal INR).

  • The Delhi, Mumbai, Bengaluru, etc. metro figures we used are nominal INR 2022–23.



Caveats

  • Geography differs: U.S./India use metropolitan areas; China figures are for city administrative units (which can include vast rural tracts); Germany list is city proper. Apples-to-apples is hard—use these as directional comparisons. Wikipedia+3

  • Years differ slightly: U.S. (2023), China (2023), Germany (2021), India (FY 2022–23).

  • Source notes: U.S. values align with BEA metro GDP; China values reflect NBS-reported city GDP compiled in the list; India values are a compiled metro list with cited government/economic survey sources per city row


  • Germany recency: 2021 is the latest consistent city-level compilation we could source; newer 2023 data exist at NUTS-2/metro-region level, but not as a uniform city list. The USD conversions here use 2023 FX to match your “USD 2023” requirement. Wikipedia+1

  • India definitions: The Indian list is metropolitan areas (UA/FUA)—not just municipal limits—and is for FY 2022–23. Conversions use calendar-year 2023 FX for consistency. Wikipedia+1

  • China FX: We used the NBS-stated 2023 average of 7.1217 RMB per USD for conversion; that keeps it official and consistent across cities. National Bureau of Statistics of China



Method Notes

  • US: BEA metro GDP for 2023 (these are real/chained dollars per BEA’s table; still in “USD 2023,” just inflation-adjusted) Wikipedia

  • China: 2023 city GDP in RMB → USD with 2023 average CNY/USD = 7.1217 (NBS communiqué) Wikipedia+1

  • Germany: city GDP for 2021 in EUR (latest city-level official compilation) → USD with 2023 average EUR/USD (World Bank WDI 2023 shows ~0.92 EUR per USD, i.e., 1 EUR ≈ 1.087 USD) Wikipedia+1

  • India: metro GDP FY 2022–23 in INR → USD with 2023 average INR/USD = 82.5708 (FRED annual) Wikipedia+1



Gini coefficient

(0 = perfect equality, 1 = perfect inequality)

Country

Gini (value)

Year

Definition / Source

United States

0.375

2022

Disposable income, after taxes & transfers (OECD Income Distribution Database). (OECD)

China

0.357

2021

World Bank PIP “Gini index” (household survey–based; WB series). (World Bank Open Data)

Germany

0.295

2024

Equivalised disposable income, after taxes & transfers (Eurostat; as reported by TE pulling Eurostat). (Trading Economics)

India

0.255

2022

World Bank PIP “Gini index” (WB update; see also GoI press note citing the WB figure). (World Bank Open Data)



Population


United States - 2023

City / Metro (MSA)

2023 Population (m)

Share of U.S. pop

New York–Newark–Jersey City

19.498

~5.8%

Los Angeles–Long Beach–Anaheim

12.886

~3.9%

Chicago–Naperville–Elgin

9.263

~2.8%

San Francisco–Oakland–Berkeley

4.567

~1.4%

Dallas–Fort Worth–Arlington

8.100

~2.4%

Sources. Metro populations from ACS 2023 (NYC, Chicago, SF) and FRED/Census series for LA; DFW from Census-based 2023 estimate noted by Wikipedia. National denominator = U.S. resident population 2023 (Vintage 2024 estimates). Census.gov+5Census Reporter+5Census Reporter+5


China - 2023

City

2023 Resident Pop (m)

Share of China pop

Shanghai

~24.87

~1.8%

Beijing

21.858

~1.6%

Shenzhen

~17.66

~1.3%

Guangzhou

18.827

~1.3%

Chongqing

~32.05

~2.3%

Sources. National denominator: 1,409.67m at end-2023 (NBS). City populations from municipal communiqués/official summaries: Beijing 21.858m; Guangzhou 18.827m; widely cited 2023 figures for Shanghai (~24.9m), Shenzhen (~17.7m), and Chongqing (~32.1m). MacroTrends+3National Bureau of Statistics of China+3Beijing G


Germany - 2021

City

2021 Population (m)

Share of Germany pop

Berlin

~3.68

~4.4%

Hamburg

~1.85

~2.2%

Munich

~1.49

~1.8%

Frankfurt am Main

~0.79

~0.9%

Cologne (Köln)

~1.08

~1.3%

India - 2021

Metro / UA

~2023 Pop (m)

Share of India pop

Delhi UA

32.94

~2.3%

Mumbai UA

21.30

~1.5%

Bengaluru

13.61

~0.9%

Chennai (Metro/UA)

11.78

~0.8%

Hyderabad

10.80

~0.8%


Caveats

Matching GDP geography:

  • U.S. uses Metropolitan Statistical Areas (MSAs);

  • China uses city administrative units (include large rural counties for Chongqing);

  • Germany is city proper;

  • India uses metros/urban agglomerations (UA).Keep that in the caption so readers don’t try to compare “city proper” to “metro.” National Bureau of Statistics of China

Denominators:

  • U.S. national population: Vintage 2024 Census estimates table;

  • China national: NBS end-2023;

  • Germany national (for 2021): Destatis;

  • India national (for 2023 to align with FY22–23 city GDP year): UN/WPP.

 
 
 

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