India Needs a Unified Urban Policy Framework

INDIA NEEDS A UNIFIED NATIONAL URBANISATION POLICY FRAMEWORK

WHY IN THE NEWS ?

  • Census 2027: India will continue using the 2011 criteria for identifying urban settlements, potentially underestimating the country’s actual urban population.
  • Policy Demand: Experts have called for a National Urbanisation Policy (NUP) to address urban-rural transition, improve planning and strengthen institutional and financial coordination.

INDIA NEEDS A UNIFIED NATIONAL URBANISATION POLICY FRAMEWORK

URBANISATION TRENDS AND EXISTING POLICY GAPS:

  • Census Classification: A settlement is classified as urban if it is a statutory town or satisfies three criteria: population of at least 5,000, density of 400 persons per sq. km and at least 75% of male workers engaged in non-agricultural activities.
  • Urban Growth: India’s urban population stood at 377 million in 2011, while the United Nations estimates that 44% of Indians currently live in urban areas.
  • Uneven Development: Around 94% of urban settlements are small towns, while approximately 60% of the urban population lives in Class I cities.
  • Peri-Urban Expansion: Areas surrounding cities are growing at approximately 4.15% annually, faster than the 2.9% growth within existing urban boundaries.
  • Institutional Gap: Census classifications, municipal funding and planning regulations operate independently, creating difficulties in managing settlements transitioning from rural to urban areas.

SEVEN KEY TRANSFORMATIONS FOR SUSTAINABLE URBANISATION

  • Classification Reform: Standardise urban settlement definitions and periodically identify transitioning settlements using satellite and geospatial data.
  • Spatial Planning: Modernise regional planning and ensure master plans, particularly for small towns and peri-urban areas.
  • Financial Strengthening: Improve municipal revenue generation, property taxation and predictable formula-based fiscal transfers.
  • Institutional Coordination: Establish a National Urbanisation Council to coordinate the Centre, States and local governments.
  • Functional Governance: Plan development according to functional regions such as airsheds, river basins and city regions rather than administrative boundaries.
  • Political Incentives: Link untied grants and financial incentives with municipal governance reforms and performance benchmarks.
  • Knowledge Exchange: Promote local innovation, institutional capacity-building and sharing of successful urban development practices.

ABOUT NATIONAL URBANISATION POLICY:

●      Article 243Q: Provides for the constitution of Nagar Panchayats, Municipal Councils and Municipal Corporations based on the nature and size of urban areas.

●      Article 243W: Deals with the powers, authority and responsibilities of urban local bodies, including functions listed in the Twelfth Schedule.

●      Article 243ZD: Provides for District Planning Committees to consolidate development plans prepared by Panchayats and Municipalities.

●      Article 243ZE: Provides for Metropolitan Planning Committees to prepare development plans for metropolitan areas.

●      Policy Objective: A National Urbanisation Policy would establish common principles for settlement classification, regional planning, fiscal transfers and coordination across different levels of government.