UPSC IAS exam preparation - Post-Independence India - Lecture 4

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Urbanisation

[हिंदी में पढ़ें ]

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1.0 Introduction

Urbanization is the physical growth of urban areas as a result of rural migration & it is closely linked to modernization, industrialization, and the sociological process of rationalization.

Urbanization in India has occurred more slowly than in other developing countries and the proportion of the population in urban areas has been only 31 per cent based on the 2001 census. The pace of urbanization is now set to accelerate as the country sets to a more rapid growth. The process of economic reforms has already unleashed investment and growth, offering its citizens rich opportunities. Surging growth and employment in cities will prove a powerful magnet. More than 350 million Indians currently live in towns and cities. Within 20-25 years, another 300 million people will get added to Indian towns and cities. This urban expansion will happen at a speed quite unlike anything that India has seen before. It took nearly forty years for India's urban population to rise by 230 million. It could take only half the time to add the next 250 million. If not well managed, this inevitable increase in India's urban population will place enormous stress on the system.

1.1 Basic terminolgies

For the Census of India 2011, the definition of urban area is as follows;

• All  places  with a municipality, corporation, cantonment board or notified town area committee, etc.
• All other places which satisfied the following criteria:

1. A minimum population of 5,000;
2. At  least 75 percent of the male main working population engaged in non-agricultural pursuits; and 
3. A density of population of at least 400 persons per sq. km.

The first category of urban units is known as Statutory Towns. These towns are notified under law by the concerned State/UT Government and have local bodies like municipal corporations, municipalities, municipal committees, etc., irrespective of their demographic characteristics as reckoned on 31st December 2009. Examples: Vadodara (M Corp.), Shimla (M Corp.) etc.

The second category of Towns (as in item 2 above) is known as Census Town. These were identified on the basis of Census 2001 data.

Urban Agglomeration (UA): An urban agglomeration is a continuous urban spread constituting a town and its adjoining outgrowths (OGs), or two or more physically contiguous towns together with or without outgrowths of such towns. An Urban Agglomeration must consist of at least a statutory town and its total population (i.e. all the constituents put together) should not be   less than 20,000 as per the 2001 Census. In   varying local conditions, there were similar other combinations which have been treated as urban agglomerations satisfying the basic condition of contiguity. Examples: Greater Mumbai UA, Delhi UA, etc.

Out Growths (OG): An Out Growth (OG) is a viable unit such as a village or a hamlet or an enumeration block made up of such village or hamlet and clearly identifiable in terms of its boundaries and location. Some of the examples are railway colony, university campus, port area, military camps, etc., which have come up near a statutory town outside its statutory limits but within the revenue limits of a village or villages contiguous to the town. While determining the outgrowth of a town, it has been ensured that it possesses the urban features in terms of infrastructure and amenities such as pucca roads, electricity, taps, drainage system for disposal of waste water etc. educational institutions, post offices, medical facilities, banks etc. and physically contiguous with the core town of the UA. 

Examples: Central Railway Colony (OG), Triveni Nagar (N.E.C.S.W.) (OG), etc. Each such town together with its outgrowth(s) is treated as an integrated urban area and is designated as an 'urban agglomeration'.

In the 2011 Census, 475 places with 981 OGs have been identified as Urban Agglomerations as against 384 UAs with 962 OGs in 2001 Census.

2.0 Causes for Urbanisation

There are two factors related to urbanization

1. Push factor 
2. Pull factor

Those factors which attract the person for availability of employment, like more income, best education etc is known as PULL FACTOR.

Those factors which force the person to migrate from their house due to circumstances are known as PUSH FACTOR.

In India and all other developing countries, urbanization is due to pull factor.

Urbanization in India was mainly caused after independence due to adoption of mixed system of economy by the country which gave rise to the development of private sector.

The main causes of urbanization in India are:

1. Expansion in government services, as a result of Second World War
2. Migration of people from Pakistan after partition of India
3. The Industrial Revolution
4. Eleventh five year plan which aimed at urbanization for the economic development of India
5. Employment opportunities are a very important reason for people moving towards cities
6. Infrastructure facilities in the urban areas
7. Growth of private sector after 1990.

3.0 TRENDS OF URBANISATION IN INDIA

India shares most characteristic features of urbanisation in the developing countries. Number of urban agglomeration /towns has grown from 1827 in 1901 to 5161 in 2001. The total population has increased from 23.84 crores in 1901 to 102.7 crores in 2001 whereas number of people residing in urban areas has increased from 2.58 crores in 1901 to 28.53 crore in 2001. This process of urbanization in India reflects a gradual increasing trend of urbanization. India is at acceleration stage of the process of urbanization.

The mode of urbanization is not equal everywhere. Mumbai is the largest metropolitan city by population in India with 12.5 million people, whereas Delhi has 11 million inhabitants. At present Gurgaon and other NCR areas are developing and expanding very fast.

India has the potential to unlock many new growth markets in its cities. Many of these things are not traditionally associated with India, including infrastructure, transportation, healthcare, education, and recreation.

Before LPG (i.e. Liberalisation, Privatisation, Globalisation) there was limited urbanization but after industrialization, urbanization is increasing at a good pace. In 2011 in India, there were 302 cities having a population of more than 1 lakh as compared to 151 in 1971. Observing these trends, analysts are expecting that more than 85 crore people will live in Indian cities by 2050.

3.1 Degree of urbanization

The degree or level of urbanization is defined as relative number of people who live in urban areas. Percent urban [(U/P)*100] and percent rural [(R/P)*100 and urban-rural ratio [(U/R)*100 ] are used to measure degree of urbanisation These are most commonly used for measuring degree of urbanization. The ratio U/P has lower limit 0 and upper limit is 1 i.e. 0< U/P < 1. 

The index is 0 for total population equal to rural population. When whole population is urban, this index is one. When 50 percent of the population is rural, it means that there is one urbanite for each rural person. The urban-rural ratio has a lower limit of zero and upper limit ¥, i.e. 0 < Urban/Rural < ¥. 

Theoretically upper limit will be infinite when there is no rural population (R=0) but this is impossible. Percent urban has increased from 11% in 1901 to 28% in 2001, whereas percent rural has shown gradual decrease from 89% to 72% over a century. Urban rural ratio which is a simple index measuring number of urbanites for each rural person experiences an increasing trend during hundred years in the process of urbanization in India. The urban-rural ratio for India in 2001 turns out to be around 38, meaning that against every 100 ruralites there are 38 urbanites in India in 2001. All these indices point towards the fact that India is in the process of urbanization and it is at the acceleration stage of urbanization.

3.2 Urban growth

Urban growth can be attributed to mainly three components 

1. Natural increase
2. Net migration
3. Areal reclassification

Since separate information in wake of change in the area and population due to extension of municipal boundaries during the inter-censal period is not available either for total or for migrant population, it is difficult to estimate decadal migration to urban areas. Besides migration data for new and declassified towns are not available separately and so there is a possibility of error in estimating contribution of migration in the share of urban growth.

During 1971-81 about 41% of urban growth can be attributed to natural increase which reflects the role of demographic momentum, 36% due to net migration and municipal boundary changes and 19% due to reclassification of area . But urban growth due to natural increase has increased from 42% in 1971-81 to about 60% during 1981-91. Urban growth due to migration and changes in municipal boundaries has reduced from 39% in 1971-81 to 22% in 1981-91. But estimates by Pathak and Mehta for these components of urban growth reflects slightly different results. It is clear that urbanization process in India is not mainly "migration lead" but a product of demographic explosion due to natural increase. People migrate to cities not due to urban pull but due to rural push. Poverty-led migration has induced a very poor quality of urbanization followed by misery, poverty, unemployment, exploitation, rapid growth of slum, inequalities and degradation in the quality of urban life.

3.3 Basic features and pattern of India's urbanisation

Basic features of urbanization in India can be highlighted as:

1. Lopsided urbanization induces growth of class one cities
2. Urbanisation occurs without industrialization and strong economic base
3. Urbanisation is mainly a product of demographic explosion and poverty induced rural - urban migration
4. Rapid urbanization leads to massive growth of slum followed by misery, poverty, unemployment, exploitation, inequalities, degradation in the quality of urban life
5. Urbanisation occurs not due to urban pull but due to rural push
6. Poor quality of rural-urban migration leads to poor quality of urbanization
7. Distress migration initiates urban decay.

The pattern of urbanization in India is characterized by continuous concentration of population and activities in large cities. Kingsley Davis used the term "over-urbanization” (Kingsley Davis and Golden, 1954) wherein urban misery and and rural poverty exist side by side with the result that city can hardly be called dynamic and where inefficient, unproductive informal  sector (Kundu and Basu, 1998) becomes increasingly apparent. Another scholar (Breese, 1969) depicts urbanization in India as pseudo-urbanization where in people arrive in cities not due to urban pull but due to rural push. Reza and Kundu (1978) talked of dysfunctional urbanization and urban accretion which results in a concentration of population in a few large cities without a corresponding increase in their economic base. 

Urbanisation process is not mainly "migration lead" but a product of demographic explosion due to natural increase. Besides rural out migration is directed towards class I cities. The big cities attained inordinately large population size leading to virtual collapse in the urban services and quality of life. Large cities are structurally weak and formal instead of being functional entities because of inadequate economic base. 

Under globalisation, survival and existence of the poor are affected adversely. Liberalisation permits cheap import of goods which ultimately negatively affects rural economy, handicrafts, household industry on which rural poor survives. The benefits of liberalization generally accrue to only those who acquire new skills. It is unlikely that common man and the poor will benefit from the liberalization. Privatisation cause retrenchment of workers. All these negative syndrome force poverty-induced migration of rural poor to urban informal sectors. Hence migration, which is one of the components of urban growth, occurs not due to urban pull but due to rural push.

3.4 Problem of urbanisation

Problem of urbanization is manifestation of lopsided urbanization, faulty urban planning, urbanization with poor economic base and without having functional categories. Hence  India's urbanization is followed by some basic problems in the field  of: 

1. housing
2. slums
3. transport 
4. water supply and sanitation
5. water pollution and air pollution
6. inadequate provision for social infrastructure ( school, hospital, etc.)

Class I cities such as Kolkata, Mumbai, Delhi, Chennai etc. have reached saturation level of employment generating capacity. Since these cities are suffering from urban poverty, unemployment, housing shortage, crisis in urban infra-structural services, these large cities can not absorb these distressed rural migrants i.e poor, landless, illiterate and unskilled agricultural labourers. Hence this migration to urban class I cities makes the urban crisis more acute.

Most of these cities using capital-intensive technologies cannot generate employment for these distressed rural poor. So there is transfer of rural poverty to urban poverty. 

Indian urbanization is involuted not evoluted. Poverty-induced migration occurs due to rural push. Megacities grow in urban population  not in urban prosperity, and culture. Hence it is urbanization without urban functional characteristics. These mega cities are subject to extremely filthy slums and very cruel mega city culture denies shelter, drinking water, electricity, sanitation to the extreme poor and rural migrants.

Urbanisation is degenerating social and economic inequalities which leads to social conflicts, crimes and anti-social activities. Lopsided and uncontrolled urbanization has led to environmental degradation and degradation in the quality of urban life. Pollution in sound, air, water, created by disposal of hazardous waste is growing. Illiterate, low-skill or no-skill migrants from rural areas are absorbed in poor low grade urban informal sector at a very low wage rate and urban informal sector becomes in-efficient and unproductive.

3.5 Growth opportunties due to urbanisation

Fundamentally, the reason cities attract migrants is that they provide jobs, which eventually leads to spending power. Further, the change in lifestyle (as compared to rural citizens) will drive demand for numerous products and services.

The biggest opportunity is likely to be in low-cost housing. These new urban Indians will need homes, but will be unable to afford the current (inflated) prices. If businesses can find a way to sell decent homes at affordable prices, there is a huge economic opportunity. Going along with this, construction related inputs – steel, cement, furniture, fittings, tiles, taps, electrical stuff like switches and wiring, and such will enjoy an unparalleled boom.

Following on from basic needs, people will then need durables, like geysers, cooking stoves, pressure cookers, fans, televisions, etc. leading eventually to higher end products like washing machines, refrigerators and air conditioners. Naturally, this will result in a surge of demand for electricity.

Transportation will be another big need, and given the dismal infrastructure, you can expect demand for two-wheelers and cars to soar (already happening). Never mind the lack of roads – traffic jams are better than not reaching work at all!

Consumer non-durable demand will also grow rapidly, as nuclear families and working women will drive demand for packaged foods, convenience goods, cosmetics, and a variety of household products. Finally, services such as those provided by restaurants, retailers, laundries, plumbers, electricians, maids, schools, teachers, baby-sitters, beauty salons, gymnasiums, health spas, and many more, will see a boom.

4.0 MODI's THREE MISSIONS 

Based on the learnings of implementation of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) that ended up in sub-optimal physical and financial performance, the Central Government has radically overhauled the Operational Guidelines for implementation of three key urban projects - (1) Smart Cities Mission, (2) Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and (3) Housing for All Mission in Urban Areas. 

The Guidelines allow the States and Union Territories full liberty and flexibility in formulation, approval and execution of projects under the three missions. The two urban ministries have sought to ensure timely sanction and execution and certainty of resources for various projects and participation of citizens in identifying development needs under the new urban schemes. Central Government has virtually withdrawn from the earlier practice of appraising and sanctioning individual projects, there by ending the scope for subjectivity and discretion.

The major new provisions incorporated in the Guidelines and common to all the three urban missions include:

1. Objective criteria for selection of cities and allocation of funds: Potential Smart Cities and AMRUT cities are to be based on an objective and equitable criteria giving equal weightage to urban population and number of statutory cities in each State/UT. Housing Mission to be implemented in all the 4,041 statutory cities/towns. For smart city development, each selected city will be provided central assistance of Rs.100 cr per year. Under AMRUT, allocation of funds will be as per urban population and number of cities/towns in each State/UT. Under Pradhan Mantri Awas Yojana in urban areas, it will be based on the number of urban poor and slum dwellers.
2. States/UTs to appraise and approve individual projects unlike in the past when urban ministries used to do so.
3. To avoid delays and non-completion of projects on account of lack of resources, States/UTs will now be required to firmly indicate resource tie ups under state level action plans.
4. To enhance urban governance, clear Action Plans for timely implementation of identified reforms need to be indicated.
5. Consultations with urban citizens made mandatory to ensure need based and bottom up planning of projects.
6. State level Action Plans to clearly indicate convergence with other central and state government schemes as appropriate for resource maximization.
7. PPP model shall be the main resource of resource mobilization.
8. Involvement of Members of Parliament and State Assemblies in formulation and monitoring of projects provided for.

Mission-Wise Guidelines Seeking Better Execution Of Projects Are As Below:

AMRUT

1. No projects without availability of land and all necessary clearances shall be included in the Mission by States/UTs.
2. States shall transfer funds to urban local bodies within 7 days of transfer by central government and no diversion of funds to be made failing which penal interest would be charged besides taking other adverse action by the centre.
3. Action Plans should provide for O&M costs for assets created for at least five years based on user charges.
4. Instead of penalizing States/ULBs for non-implementation of reforms by linking fund release with progress on reforms resulting in delays, the Guidelines now provide for incentivizing reforms by earmarking 10% of annual allocation to be allocated to good performers at the end of each year.
5. For water supply, sewerage, septage, storm water drains and urban transport, centre's share to be in the range of 1/3 of project cost to 50%. States to mobilize the balance with its own share being not less than 20%.
6. A set of 11 Reforms to be implemented in four years including: Promoting e-governance, Improving collection of various taxes, fee and user charges, Augmenting double entry accounting, Constitution and professionalization of municipal cadre, Preparation of GIS based Master Plans, Devolution of funds and functionaries to urban local bodies, Review of Building By-laws, Setting up financial intermediaries for pooling and disbursement of resources, Credit Rating of urban local bodies, Energy and Water Audit and Achieving Swachh Bharat Milestones.

Smart Cities Mission

1. Central assistance to be used only for infrastructure projects which have larger public benefit.
2. Minimum area norm for Retrofitting is 500 acres; for Redevelopment-50 acres; for Green Field projects-250 acres. This will be 50% for North-Eastern and Himalayan states.
3. Benchmarks to be achieved include : 10% of energy needs to be met from renewable sources, 80% of building construction to be green and 35% of housing in green field projects to be for economically weaker sections.
4. Special Purpose Vehicles to be set up for implementation of smart city plans with 50:50 equity of States and Urban Local Bodies
5. An Inter-departmental Task Force to be set up to coordinate all aspects of smart city development

Pradhan Mantri Awas Yojana (Urban)   [ Housing for All in Urban Areas ]

1. Ownership of houses to be in the name of woman or jointly with husband
2. Houses of 30 sq.mt carpet area to be built for EWS category. In case of non-availability States can relax with the consent of beneficiaries. States also can enhance the area while meeting the additional expenditure.
3. Central grant of Rs. One lakh on an average per house to be provided by the Central Government can be used by States for any slum redevelopment project in the state to make them viable.
4. Interest support @ 6.50% to be paid soon after sanction of loan to the beneficiary so as to bring down EMI .
5. Beneficiaries can submit Self-certificate/Affidavit as proof of income. 
6. Under Affordable Housing in Partnership with Private and Public Sector, 35% of houses shall be for economically weaker sections and the minimum project size shall be above 250 houses.
7. Central Ministries/Agencies also to take up Slum Redevelopment Projects on their lands without charging for land and will be eligible for central grant.
8. Under In-situ Slum Redevelopment, Private developers to be chosen through open tendering and it is developers' responsibility to provide transit accommodation during construction period. Private developers to be given only that much of land required for commercial viability of project. 
9. The scheme will cover the entire urban area consisting of 4041 statutory towns with initial focus on 500 Class I cities and it will be implemented in three phases as follows - (1) Phase-I (April 2015 - March 2017) to cover 100 Cities to be selected from States/UTs as per their willingness; (2) Phase - II (April 2017 - March 2019) to cover additional 200 Cities and (3) Phase-III (April 2019 - March 2022) to cover all other remaining Cities. However, there will be flexibility in covering number of cities in various phases and inclusion of additional cities may be considered by the Ministry of Housing & Urban Poverty Alleviation in case there is demand from States and cities and have capacity to include them in earlier phases. Credit linked subsidy component of the scheme would be implemented across the country in all statutory towns from the very beginning.
10. Dimension of the task at present is estimated at 2 crore. Exact number of houses, though, would depend on demand survey for which all States/Cities will undertake detailed demand assessment for assessing actual demand by integrating Aadhar number, Jan Dhan Yojana account numbers or any such identification of intended beneficiaries.

All the three Missions would be implemented as Centrally Sponsored Schemes except Affordable Housing with Credit Linked Subsidy component. Share of States/UTs vary from one to the other. Under AMRUT, share of States shall not be less than 20% and under Smart Cities Mission, share of States/ULBs shall match that of central assistance and the rest to be mobilized by the States/UTs and ULBs. Under PMAY, it has been left to the States/UTs who would be required to mobilize the balance after centre's share.

5.0 COMPARISON TO CHINA

In India, urban per capita GDP is projected to grow at a rate of 6 percent a year from 2005 to 2025, while China will see a growth of 7.3 percent. This is because of bad infrastructure, lack of good governance etc.

China has developed a set of internally consistent practices across every element of the urbanization operating model: funding, governance, planning, sectoral policies, and the shape, or pattern, of urbanization, both across the nation as a whole and within cities themselves.

5.1 Solution

India has a young and rapidly growing population - a potential demographic dividend. New McKinsey Global Institute research estimates that cities could generate 70 percent of net new jobs created by 2030, may produce around 70 percent of Indian GDP, and drive a near fourfold increase in per capita incomes across the nation. If India fixes its urban operating model, it has the potential to reap a demographic dividend from the increase - of around 250 million expected in the next decade - in the working-age population. This dividend is even larger than that in China, which is aging rapidly. By 2025, nearly 28 percent of its inhabitants will be aged 55 or older, compared with only 16 percent in India, whose demographic profile is much more youthful. If India optimizes the productivity of its cities and maximizes their GDP, the economy could add more than 170 million urban workers to its labor force from 2005 to 2025, compared with 50 million in China over the same period.

To remove poverty, there is a need to implement government schemes effectively. Some government schemes which tackle this problems are SJSRY (SWARYA JAYANTI SHAHRI ROZGAR YOJNA), and JNNURM (JAWAHARLAL NEHRU NATIONAL URBAN RENEWABLE MISSION). To make a slum-free India a scheme called RAJIV AWAS YOJNA was commenced from 2011. This mission can fullfill the basic low cost housing need due to urbanisation.

Also to reduced uncontrolled migration, some steps that should be taken are:

1. Develop the concept of PURA i.e., to develop infrastructure, electricity, employment, education etc. in rural areas for stopping migration of rural people (PURA = Provision for Urban Amenities in Rural Areas)
2. Train the rural peoples to do their work in scientific style. For this, a project is on since 2011 named NATIONAL RURAL LIVELIHOOD MISSION (NRLM)
3. Make MNREGA effective & transparent
4. Develop basic infrastructure with the help of PPP model
5. Implement PGSY (PRADHANMANTRI GRAM SARAK YOJNA) effectively

India needs to work on several areas to manage its urbanization. The following are perhaps the most important: Inclusive cities, urban governance, funding, planning, capacity building and low-income housing. India also needs to start a political process where the urban issues are debated with evolution of meaningful solutions. 

Inclusive cities: The poor and lower income groups must be brought into the mainstream in cities. Regulations intended to manage densities and discourage migration both limit the supply of land and require many households to consume more land than they would choose. This drives urban sprawl and pushes up the price of land and the cost of service delivery for all. High standards for parking, coverage limits, setbacks, elevators, road widths, reservations for health centers/schools etc. (often not used) prevent the poor from choosing how much to consume of the costliest resource (urban land) to put a roof over their heads, and comply with legal requirements. 

Informality is now the only path to affordable housing for the bulk of the population in India's cities. But informality implies illegality and therefore vulnerability. While lower income groups pay dearly for shelter and services - they are bereft of normal property rights protections and their investments are thus far riskier than those of the well off. They must instead depend on the good will of bureaucrats and politicians - to safeguard their homes and places of business. These barriers to healthy urbanization come not only at a high human cost, but also take a toll on productivity. Chronic informality discourages the very investments in education, health and housing improvements the lower classes need to improve their own lot and contribute more to the national economy.

Urban governance: Meaningful reforms have to happen that enable true devolution of power and responsibilities from the states to the local and metropolitan bodies according to the 74th Amendment. This is because by 2030, India's largest cities will be bigger than many countries today. India's urban governance of cities needs an over-haul. India's current  urban  governance  is  in  sharp  contrast to large  cities  elsewhere  that  have empowered mayors with long tenures and clear accountability for the city's performance. India also needs to clearly define the relative roles of its metropolitan and municipal structures for its 20 largest metropolitan areas. With cities growing beyond municipal boundaries, having fully formed metropolitan authorities with clearly defined roles will be essential for the successful management of large cities in India.

Financing: Devolution has to be supported by more reforms in urban financing that will reduce cities' dependence on the Centre and the states and unleash internal revenue sources. Consistent with most international examples, there are several sources of funding that Indian cities could tap into, to a far greater extent than today: Monetizing land assets; higher collection of property taxes, user charges that reflect costs; debt and public-private partnerships (PPPs); and central/state government funding. However, internal funding alone will not be enough, even in large cities. 

A portion has to come from the central and state governments. Here one can use central schemes such as JNNURM and Rajiv Awas Yojana but eventually India needs to move towards a systematic formula rather than ad-hoc grants. For large cities with deep economies, this might mean allowing them to retain 20 percent of goods and services tax (GST) revenues. This is consistent with the 13th Central Finance Commission's assessment that GST - a consumption-based tax that creates local incentives for growth and that is therefore well suited for direct allocation to the third tier of government. For smaller cities, however, a better option would be to give guaranteed annual grants.

Planning: India needs to make urban planning a central, respected function, investing in skilled people, rigorous fact base and innovative urban form. This can be done through a "cascaded" planning structure in which large cities have 40-year and 20-year plans at the metropolitan level that are binding on municipal development plans. Central to planning in any city is the optimal allocation of space, especially land use and Floor Area Ratio (FAR) planning. Both should focus on linking public transportation with zoning for affordable houses for low-income groups. These plans need to be detailed, comprehensive, and enforceable.

Local capacity building: A real step-up in the capabilities and expertise of urban local bodies will be critical to devolution and improvement of service delivery. Reforms will have to address the development of professional managers for urban management functions, who are in short supply and will be required in large numbers. New innovative approaches will have to be explored to tap into the expertise available in the private and social sectors.

India needs to build technical and managerial depth in its city administrations. In the Indian Civil Services, India has a benchmark for how to build a dedicated cadre for governance.

India now needs to create an equivalent cadre for cities, as well as allow for lateral entry of private-sector executives.

Affordable housing: Affordable housing is a particularly critical concern for low-income groups - in the absence of a viable model that caters to their needs. India can meet the challenge through a set of policies and incentives that will bridge the gap between price and affordability. This will enable a sustainable and economically viable affordable housing model for both government housing agencies and as well as private developers. India also needs to encourage rental housing as an option particularly for the poorest of the poor, who may not be able to afford a home even with these incentives.

With the 74th amendment to India's constitution and the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), India took the first steps toward urban reforms. Going forward, the central government has to play a catalytic role accompanied by a supporting package of incentives. States should recognize that starting early on the urban transformation will give them gain a competitive advantage, attract investment, and create jobs thereby putting them ahead of the curve.

Thus urbanization is good for our economic growth, but it must be planned. Government’s making any policy for rural or urban area should be implemented effectively & must be transparent. There must be good governance, good infrastructure etc. We have to strive to increase the standard of living in slums that they also help the country in increasing growth rate. Develop infrastructure with the help of BOT (BUILD, OPERATE, TRANSFER) or BOLT (BUILD OWN LEASE TRANSFER).

Smart Cities project in India

• The current population of India was approximately 136 crores, on the latest United Nations estimates.
• India population is equivalent to 17.74% of the total world population
• India ranks number 2 in the list of countries (and dependencies) by population
• The population density in India is 460 per Km2 (1,192 people per mi2)
• The total land area is 2,973,190 Km2 (1,147,955 sq. miles)
• 33.6 % of the population is urban (460,249,853 people in 2019)
• The median age in India is 27.0 years

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