India’s urbanisation rate has not been consistently high

Debolina Kundu, Director, National Institute of Urban Affairs, shares her insights on urbanisation and planning in India, in an interview with E Jayashree Kurup, Director, Real Estate and Cities, Wordmeister Editorial Services

Government estimates suggest that as of June 2024, there are 4,962 statutory towns, out of which 62 are cantonment areas. As per a recent Niti Ayog report, 60 per cent cities of the country are not planned and are statutory towns. Under the AMRUT Scheme, the number of developing towns and cities has grown significantly and various master plans based on the Geographical Information System (GIS) have been formulated. These master plans not only include 500 Class 1 cities, but also the sparsely populated smaller towns. The government also plans to offer a funding of Rs 1,000 crore as an incentive for development in eight cities.

Contrary to popular belief, India’s urbanisation rate has not been consistently high. There was significant urban growth until the 1970s. However, since the 1980s, there has been a decline. Recently, the growth rate has increased slightly owing to the development of census towns. India follows a top-heavy urbanization pattern. Statistically, 30 percent of non-Class 1 cities are concentrated in 9,000 small towns and 70 percent of the urban population is concentrated heavily in approximately 500 large cities.

The three driving forces of urbanisation are migration, population increase due to natural flow, and in situ urbanisation. Since the 1980s, migration from rural to urban areas was recorded at 20-22 per cent, with short-term and circular migration patterns being evident. In situ urbanisation, that is, expansion of cities along the boundaries of major cities like Bengaluru and Hyderabad, has led to rural areas becoming urbanised. This has led to a 0.03 percent increase in the rate of urbanisation between 2001-2011. This, in turn, is a result of sectoral diversification as people in rural areas are no longer employed in the primary sector. It also considers population, that is, if a settlement has a population of 5,000, density of at least 400 persons per square kilometer and 75 percent of male workers engaged in the non-agricultural sector, then it is referred to as a census town.

Employment potential: A prerequisite to urban planning is exploring the country’s employment potential and its assessment. Along with sectoral diversification, urbanism as a way of life has facilitated the development of the manufacturing and service sectors, in turn replacing the primary sector. According to Dr Debolina Kundu, the government needs to work in promoting market towns, handicrafts, manufacturing sectors, advanced storage facilities, and robust transport connectivity.

Urban growth in India tends to be unplanned. This can be understood through Kerala’s example. In 2001, Kerala was just 25 per cent urbanised and in 2011, this increased to 47.78 per cent. During her stint with the Kerala State Urban Planning Department, Dr Debolina Kundu found that all class 1 cities depopulated between 2001-2011, the number of million-plus cities increased and there was a notable shift towards peripheral areas. Several factors contributed to the growth in the periphery, such as cheaper land, labour, and less stringent master plan norms. What followed was air pollution, housing crisis, and lopsided building bylaws.

Plan financing: Master plan financing flows from central and state finance commissions. Further, there are various centrally financed schemes like Smart City mission in hundred cities, Amruth 2.0, Swachh Bharat mission, and Pradhan Mantri Awas Yojana (PMAY). Other than this, cities also generate finances from property tax and user charges. Along with planning, effective capacity building at the local level is also essential. This will help empower municipal staff, improve efficiency in governance, and ensure informed decision-making. Further, existing staff needs to be unburdened and local councillors need to be educated about the 74th Constitutional Amendment Act 1992.

As urban development is a state subject, census towns do not get finances from the Ministry of Housing and Urban Affairs until and unless they are recognised by the state as a statutory town.

According to Dr Debolina Kundu, planning, governance, and finance are the three main areas of intervention in cities. She suggests that there is a need for coordination among agencies within the city along with measures to improve the capacity of a city to absorb the funding that is being provided. Finally, competent bodies should be in place in order to plan and execute urban development. When it comes to engagement of citizens, participatory governance and budgeting is crucial. This is manifested in the form of Resident Welfare Associations (RWAs). However, RWAs are an urban phenomenon, which do not include within its ambit the underprivileged sections of the society, who till date find it difficult to access basic facilities and services.

New cities: While planning and developing new cities, other aspects that need to be prioritised are safety and sustainability. While well-lit streets and surveillance are important for maintaining safety, education and awareness of citizens can facilitate sustainable actions. For a circular economy to exist, a collective effort on the part of industrialists, private sector, government, and citizens should follow. The Cities 2.0 program launched by the Government of India is a step in this direction, as it covers 18 cities and focuses on developing a circular economic model, which will work as a lighthouse for other cities.

According to Dr Debolina Kundu, “There is a very clear-cut plan of action for the next few years. Both the Ministry of Housing and Urban Affairs, and the Ministry of Rural Development are working together in problem areas such as faecal sludge management.”