The last three decades have been transformational for India’s economy. From an economy with comatose growth for much of the period since the end of colonial rule to becoming the third-largest economy in the next couple of years, India has come a long way. In doing so, it has also returned to where it was historically — amongst the largest economies in the world.
This reshaping of the economy can be attributed to the structural changes that various dispensations have brought about. Amidst the rapid metamorphosis in various parts of the economy, there has been a steady change towards urbanisation. Twenty per cent of Indians lived in cities in 1991 and currently, 30 per cent do so. The figure is likely to rise to 40 per cent in 2030. Consider the absolute numbers – 180 million in 1991, 390 million in 2021 to 600 million in 2030.
This juggernaut of urbanisation moves on but our cities continue to be beset with poor governance, inadequate infrastructure, and woeful service. There are, however, green shoots of change.
As we get into election season, it is apt to anticipate what the new government could have high on its agenda. There are compelling reasons to believe that over the next few years, urban development will become a mainstream political agenda and urban governance will be dramatically transformed in India.
Rise of the urban vote
In the last 25 years since the launch of the Golden Quadrilateral Highways programme, and especially in the last 10 years, the roads and highways across the country have dramatically changed inter-city connectivity. The growth of civil aviation and improved railway services have also catalysed extensive travel within the country. Infrastructure development is likely to shift gears from inter-city to intra-city. India needs world-class cities to fulfil its economic growth aspirations.
With massive infrastructure development, many new urban centres are being created — from industrial towns along the Delhi–Mumbai Expressway and a brand-new city in Ayodhya to the development around the upcoming international airport in Noida. These will catalyse India’s economic growth.
The growing urban population is an increasingly important cohort of voters. The power of the vote is already creating pressure on farsighted politicians and political groups. If, as is planned, the delimitation of parliamentary constituencies happens in 2026, it is obvious that cities and urban centres will significantly enhance their share in Parliament. No political party will be able to ignore for long the need for improvement in urban governance.
In the 2023 Union Budget, the government announced incentives for cities raising funds through municipal bonds — financial independence will be the bedrock of independent governance. As a result, some half dozen cities, including Kanpur, Varanasi and Agra — have announced plans to issue municipal bonds.
To get things going, here are a few of the early steps the government should take.
Empower the municipalities
While the 74th Constitutional Amendment Act institutionalising urban local government was passed in 1992, its implementation has been limited. It is time that it is done, in letter and spirit. Governments should look to incrementally delegate powers to civic bodies — a well-defined timeline for this gradual devolution of power will enable stakeholders to gear up appropriately.
The capability development of local bodies and municipal and civic leaders will be essential to move the needle. Municipal staff often lack skills nor do training programmes exist to build their proficiency. In a large number of cases, hiring for these bodies is beset by nepotism and corruption. Many municipalities across the country keep their accounts on notebooks, and commonly available software solutions are unavailable at times. Besides the common but intractable issues of sanitation, public safety, water supply, and housing for the poor, local bodies need to be equipped to deal with newer issues that face our society, for instance, climate change or diversity and inclusion.
As institutional capacity is built, it will also support an efficient transfer of power and responsibility. Many councillors do not appreciate their powers properly, nor do they fully understand their role and responsibilities. It is only with this awareness that they will be able to navigate the bureaucrats state governments impose on local governments.
Involve the citizen, go digital
Another important change is a shift in the nature of engagement of people with the government. It must move from purely seeking redress to collaborative solution building. This means that citizens need to be involved in the process of identifying and solving problems, rather than simply reporting them to the government. Making citizens the fulcrum of municipal initiatives will go a long way in making local governance effective and efficient. Only when common people are actively co-opted by local administrators and city leaders to find solutions for their city, can we say that citizens are being engaged.
Further, as the India Infrastructure Report 2023 points out, the transformative potential of digital technology in shaping the urban landscape is unmissable. The financial sustainability of urban local bodies needs to be addressed, at least till they gain the capacity to raise adequate revenue on their own.
Urban rejuvenation is an essential component of nation-building and an integral element in our growth. Sustainable all-round development of our urban space is the only way forward if Bharat is to keep its promise of rapid and accelerated development.
The writer is a public policy advisor. Views are personal
