By Jayshree Bajoria BBC correspondent in Bombay

Transforming India's financial capital, Bombay (Mumbai) into a world class city, requires investments worth $10bn, a new report says.

The state authorities are promising money for the city

International consulting firm McKinsey, which drew up the report, says the money needs to be invested over a period of 10 years.

The report comes amid growing fears among the city's leading businessmen and policy makers that Bombay is gradually losing its prominence as India's commercial hub.

Seen as a blueprint for the city's growth, it says Bombay needs to take a giant leap forward in order to catch up with other financial cities like Dubai, Singapore and Shanghai.

Resources

McKinsey suggests that Bombay need not look elsewhere for financial help as the city has enough resources of its own.

It says the city must grow at the rate of 8 to 10% per year.

It suggested immediate steps to kick-start the transformation such as the beautification of key city roads and construction of new public toilets.

"More than 30% of the country's income tax is collected from Mumbai. Therefore raising a billion dollars a year for the city is no challenge," said Narinder K Nayar, who is the chairman of the private firm that commissioned the report, Bombay First.

The Chief Minister of Maharashtra state, of which Bombay is the capital, Sushil Kumar Shinde, has accepted most of the recommendations.

He has announced the appointment of a special secretary to oversee the implementation of these recommendations.