Turning Urban Challenges into Engines of Growth

WhatsApp
Facebook
Twitter
Telegram
Copylink

Link copied successfully!

In Summary

India can leverage urban growth by addressing pollution, waste, water, and housing issues through sustainable models, improved governance, and incentives to transform cities into economic engines.

In Summary

Recent U.S. hike in H-1B visa fees offers India an opportunity to attract global talent and develop livable and globally competitive cities.

India’s Urban Potential & Its current status:

Economic Engines: Only 15 Indian cities contribute nearly 30% of India’s GDP.
- Strengthening them could add about 1.5% to national growth annually.
Future Growth Drivers: India already has the world’s second-largest urban system and by 2036, urban areas will be home to 40% of the population

Major Urban Challenges

Pollution and Mobility: India has 6 out of the 10 most polluted cities globally with issues like Vehicular emissions, construction dust.
Solid Waste Management: Only 26% of collected solid waste is scientifically treated and mixed waste remains largely uncollected.
Water Scarcity: 40–50% of piped water is lost due to leakages and inefficiencies.
Urban Density and Housing: Affordable housing shortage could triple to 31 million units by 2030, issue of low Floor Space Index (Increases urban sprawl).
- Floor Space Index (FSI), also known as Floor Area Ratio (FAR), is the ratio of a building's total built-up area to its plot area
Other Issues: Congestion and Mobility, weak local governance and outdated regulations (Niti Aayog).

Proposed Way Forward

Pollution and Mobility: Electrify public transport and incentivize high-performing cities through the Urban Challenge Fund.
Water Scarcity: Expand recycling and rainwater harvesting, adopt rational water pricing like “pay as you use”.
Urban Density and Housing: Allow higher Floor Space Index; adopt sustainable models like Singapore (green urban model).
- Following models from Sao Paolo and Tokyo, developers could gain height allowances in exchange for contributions to social housing or transit infrastructure.
Governance and Capacity: Devolve powers and finances to city governments, Improve revenues via property tax reforms, digitized land records, and Land Value Capture (as in Hong Kong).