India is undergoing rapid urbanisation. By 2035, 675 million people will reside in Indian cities, with the figure projected to rise by another 70 million by 2045. 

• Cities are undeniably the engines of India’s economic and social development, making a well-defined urban agenda paramount for future prosperity. 

Current State and Bottlenecks Faced By Indian Cities 

• Traffic Congestion: Leading to substantial time and fuel waste, and reduced productivity. 
  • According to the Asian Development Bank, India loses $22 billion annually due to poor transport efficiencies and infrastructure.
• Water Scarcity: Indian cities face growing water stress due to over-extraction, pollution, and erratic rainfall. 
  • Example: Shimla in North India and Udupi and Mangalore in coastal Karnataka are on the verge of becoming Tier 2 cities which would have a ‘Day Zero’ situation soon.
    • Day Zero Situation: It is a situation when there will be no water in the taps and the use of water will become restricted for vital services only
• Ineffective Solid Waste Management: Urban areas struggle with unsegregated and overflowing waste despite flagship initiatives like the Swachh Bharat Mission.
• Inadequate Sanitation Facilities: Many cities still lack access to safe toilets and proper sewage systems, affecting public health and dignity.
• Poor Logistic Integration: Fragmented transport networks hinder smooth flow of goods, raising costs and reducing urban competitiveness.
• Insufficient Municipal Financing: Weak revenue generation and over-reliance on grants limit cities’ ability to upgrade essential infrastructure.

Six-Point Reform Agenda for Urban India

• Treat Urban Infrastructure as Core National Infrastructure: Urban assets such as mobility (metros, public transportation), waste management, and water availability must be aggressively developed, similar to roads, ports, and energy.
  • Smart cities and logistics ecosystems should be considered strategic national infrastructure, demanding focused attention and adequate funding.
• Integrate Urban Expansion with Industrial Corridors: Urban planning must align with industrial development to reduce commuting inefficiencies and costs.
  • Integrated planning involving transit zoning and area-wise development will help create livable urban-industrial zones, improving productivity and reducing economic waste.
• Unify Technology-Enabled Urban Governance Bodies:
  • Technology and innovation should drive urban management.
  • Private sector participation must evolve from consultation to stakeholder ownership to enhance project execution.
  • Real-time performance dashboards and digital twins (which integrate live data with predictive technology) can offer dynamic solutions to urban issues.
  • Example: Bengaluru’s Agenda Task Force, where civic leaders, citizens, and industry collaborate on digitised waste management.
• Elevate Sanitation and Waste Management to a National Economic Priority
  • Sanitation and waste management require urgent focus and can benefit from private sector involvement.
  • Public-Private Partnership (PPP) models like Build-Own-Operate-Transfer (BOOT), seen in the Tirupur Water project, can be adopted to ensure sustainability and attract investment.
  • Risk-sharing mechanisms must support private players to ensure long-term engagement.
• Recast PPP Models for Urban Realities: Just like large infrastructure projects benefit from Viability Gap Funding, urban development should be supported through a dedicated Urban Challenge Fund.
  • This fund should assist both brownfield projects (upgrades) and greenfield initiatives (new projects like wastewater treatment plants), helping mitigate risk and encourage private investment.
    • Viability Gap Funding (VGF): is a financial support mechanism provided by the government to make economically justified but financially unviable infrastructure projects attractive to private investors under the Public-Private Partnership (PPP) models.
    • It is available for both economic infrastructure (like roads, ports, etc.) and, under a special window, for social sector infrastructure.
• Co-develop the Digital Backbone of Modern Cities: Modern cities must leverage digitalisation and artificial intelligence.
  • Examples: AI-optimised traffic lights that adjust to real-time traffic conditions.
  • Developing digital public goods, similar to Aadhaar, can improve service efficiency and accessibility.

Conclusion

Urban reforms are critical for India’s holistic development. As India moves toward 2045, its future will depend on resilient, efficient, and inclusive cities, backed by legitimate and empowered civic institutions.

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