Context:
- As India aspires to become an over $30 trillion economy by 2047, its urban centres must drive innovation, job creation, and economic growth.
- However, the country’s top 15 cities face systemic issues — pollution, poor planning, weak governance, and infrastructure deficits.
- This article discusses key reforms to unlock their full potential in the coming “urban decade.”
The Engine of India's Future Growth:
- 15 cities — including Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad — contribute 30% of India’s GDP.
- These cities can add 1.5% additional annual GDP growth and play a key role in achieving India’s long-term economic vision.
- Despite their importance, they remain plagued by pollution, traffic, slums, water stress, and inadequate digital infrastructure.
Environmental and Health Challenges in Urban Spaces:
- Air pollution crisis:
- India hosts 42 of the world’s 50 most polluted
- Key pollutants are vehicular emissions, construction dust, and biomass burning.
- Solutions proposed includes -
- Electrify public transport.
- Strict enforcement of construction dust norms.
- The Union Budget 2025-26 announced the ₹1 lakh crore Urban Challenge Fund to rank cities and disburse financial incentives based on performance.
- Solid waste management - A missed opportunity:
- According to the Ministry of Housing and Urban Affairs (MoHUA), Indian cities generate 1.5 lakh tonnes of solid waste per day, but only 25% is processed.
- At the national level, India is estimated to generate about 62 million tonnes of municipal solid waste yearly, of which only 30% is processed.
- Reform steps:
- Municipalities must procure equipment and train sanitation staff.
- Encourage performance-based accountability and regulations.
- Transition to a circular waste economy could unlock $73.5 trillion by 2030.
- Best practice: Indore's bio-CNG and segregated waste model.
Urban Water Crisis and Solutions:
- Rising water stress:
- As water stress is an urgent challenge, nearly half of our rivers are polluted.
- In 2018, NITI Aayog predicted that 40% of India’s population would face water scarcity by 2030.
- Cities lose 40-50% of piped water due to leakages.
- Water-sensitive urban planning - Indore’s innovations:
- Sewage leakages into water bodies were plugged, leveraging GIS technology.
- Rainwater harvesting and reuse of treated water have turned Indore into India’s first water-plus city.
Housing Deficit and Informal Settlements:
- Affordable housing gap:
- Estimated shortfall: 10 million homes now, 31 million by 2030 (CII).
- Rise of informal settlements and illegal colonies lacking sanitation and infrastructure.
- Vertical expansion and policy tools:
- Increasing floor space index (FSI) and floor area ratio (FAR) growth will promote vertical growth.
- As the G20 India and OECD report on "Financing Cities of Tomorrow" points out, density-related incentives are another possible remedy.
Urban Mobility and Congestion:
- Congestion crisis:
- The average urban commuter loses 1.5–2 hours daily in traffic.
- This is mainly due to overpopulation, weak public transport, poor enforcement.
- Smart urban mobility solutions:
- Prioritise investment in public transport.
- Use AI and IoT for real-time traffic management.
- Introduce congestion pricing models.
- Encourage citizen discipline and smart driving habits.
Digital Infrastructure Gaps:
- Slow internet speed:
- Average speed: ~100 Mbps in India vs more than 1 Gbps in Seoul, Singapore.
- To attract top MNCs, and for setting up innovation centres, global capability centres (GCCs), and R&D hubs, India needs to dramatically upgrade its digital infrastructure.
- Strengthening digital connectivity:
- India needs to expand high-speed broadband, 4G and 5G across cities and rural areas.
- This requires cutting spectrum prices to attract investment, building extensive fibre-optic networks, and deploying 5G nationally.
Governance and Financing Reforms:
- Weak urban planning capacity: India has 1 planner per 1,00,000 people, as against the global norm of 1 per 5,000–10,000. Most cities lack robust master plans.
- Strengthening decentralised governance:
- Full implementation of the 74th Constitutional Amendment.
- Increasing property tax collection, which is currently less than 0.2% of GDP.
- Use digitised land records, land value capture (LVC), and municipal bonds post governance reform.
Reimagining Cities as Cultural-Economic Hubs:
- Promote walkable heritage zones and integrated urban experiences.
- Partnership between government (policy/infrastructure) and private sector (innovation/delivery).
- Cities must evolve into global magnets for business and culture, like Dubai or Singapore.
Conclusion - India’s Decade of Urban Transformation:
- India's top 15 cities must be empowered to lead the country's economic, cultural, and technological transformation by 2047.
- With focused investments in infrastructure, governance, environment, and digital access, these urban centres can spearhead India's journey toward becoming a $30 trillion economy and global powerhouse.