Urbanisation means a population shift from rural settlement to urban settlement. It can also be linked with the level of development, as more urban areas indicate more development. In India, a major increase in urban population can be seen after 1991, as the period witnessed rapid development. According to the UN projections, Indian cities are estimated to house 870 million people by 2050 from a population of 377 million in 2011. India’s ambition of becoming a five trillion-dollar economy by 2025 and a 10 trillion-dollar economy by 2030 is centered on its cities. Despite their critical role, cities in India face several challenges like inadequate affordable housing, proliferation of slums, problems of water supply and drainage, solid waste management etc. As India urbanises, it must ensure that not only are the above-mentioned challenges addressed, but also greater needs necessitated by the growing population are accommodated. In 2011-12, estimates by a high-powered expert committee indicated the need for investing nearly Rs 39-60 lakh crore in urban infrastructure in the next 30 years, going well beyond the range of public budgetary support. This necessitates a well-thought-out urbanisation policy to guide the planning and management of cities.

In this regard, a new urbanisation policy must address the following:

• Size and density: A proper balance between agglomeration economies, manageability, density and distance will hold the key in determining the right size for our cities. Large cities offer agglomeration economies but are complex to manage and are vulnerable to the spread of diseases. Decentralised urbanisation where multiple cities are clustered into growth regions can be employed.
• Finance: There is a need to tap resources other than solely relying on public budget. In this context, capital markets offer a solution. However, basic services must be priced in a manner that allows a reasonable return on investments. Other solutions could include monetising land assets, efficient service delivery through the private sector and improving property tax collections.
• Planned urban development: The policy must focus on efficient yet sustainable urban planning instead of prioritising construction. The decision on infrastructure development must not be taken in isolation.
• Rural-urban linkages: There are strong economic linkages between cities and their rural hinterland and also between multiple cities in a region and peri-urban areas. An estimated 180 million rural people live next to India’s 70 largest urban centres. Thus, the planning boundary must not be limited to a city’s political and administrative boundary but should encompass regional linkages. The land use plan for a city should not be divorced from a regional economic plan but should be guided by it.
• Climate change: Building resilience to mitigate the negative impacts of climate change will also be critical to urban planning. The urbanisation policy must guide cities into a low-carbon growth path. Energy-efficient buildings, clean energy, water harvesting, segregation of waste, electric mobility, public transport etc. are sustainable practices that need to be mainstreamed into urban planning.
• Adaptation to change: Developments in technology that make it easier to work remotely are likely to change work culture, its associated travel patterns and the need for transport infrastructure. Travel patterns are getting limited to shorter distances, requiring more non-motorised transport infrastructure rather than high-speed systems better suited to longer trips. An urbanisation policy should take cognisance of future mobility patterns.

A sound urbanisation policy should accommodate and enable India’s growth ambitions and also assure its residents of a good quality of life in a sustainable manner. It should also incorporate factors relating to how the growing urban population lives, works, and plays in India’s cities of the future. In the context of rapidly urbanising India, there should be no delay in conceiving and implementing such a policy.