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India’s Urbanisation: Top-Down Missions vs Local Needs

25 March 20251 min read
NATIONAL AFFAIRSIndia’s Urbanisation:Top-Down Missionsvs Local Needs25 March 2025safalsetu.com

Why in the news

A commentary argues that India’s urbanisation, guided largely from the Centre since the post-1990s liberalisation, needs a shift from top-down control to locally driven planning.

Key facts

  • Urban growth picked up rapidly after the 1990s liberalisation.
  • Urban development is a State subject, but the Union government has been pivotal through JNNURM and five urban flagship missions.
  • The Centre controls financial allocations and project structure, leaving cities little room for context-specific choices.
  • Cities are seen as growth engines and infrastructure as essential to the $5 trillion economy goal.

Central missions

SectorMissions
HousingIndira Awas Yojana, Rajiv Awas Yojana, PMAY
Basic servicesBSUP (UPA era), AMRUT, Swachh Bharat Mission
MobilityCity mobility plans, metro rail (about 30% of urban budget under NDA)

Concerns

  • Finance Commissions attach conditionalities, such as the 15th FC’s link of property tax growth to State GDP.
  • States differ: Kerala and Karnataka show rural-urban continuums; Gujarat shows core-periphery sprawl; housing needs vary by city.
  • Universal mandates like SBM overlook local sanitation and water needs, and ignore migration patterns such as north to south.
  • Results include unused funds (Smart Cities Mission experience) and irrelevant infrastructure built to meet bureaucratic targets.

Way forward

  • Send 70% of the Union urban budget as direct transfers to States and cities; retain 30% for national priorities such as climate resilience.
  • Earmark transfers for mobility, sanitation, housing, water, waste and innovation.
  • Let States and cities set priorities with knowledge agencies and local consultation.
  • The Centre should guide and enable rather than prescribe, and empowered city governments can link governance to citizens.

Exam angle

  • Urban development is a State subject in the Constitution’s distribution of powers.
  • Schemes to recall: JNNURM, AMRUT, PMAY, SBM, Smart Cities Mission.
  • Suggested split: 70% direct transfers, 30% central priorities.

Test yourself

1. What share of the Union urban development budget is proposed as direct transfers to States and cities?

The suggestion is 70% direct transfers and 30% retained for national priorities.

2. Which condition did the 15th Finance Commission link to State GDP growth?

It linked property tax enhancement with State GDP growth.

3. Urban development in India is primarily which type of subject?

The notes state urban development is a State subject.