'DECENTRALISED' URBANISATION KEY TO GROWTH, SUSTAINABILITY & EQUITY

INDIA'S RAPID urbanisation presents a golden opportunity. Equally a monumental challenge. Urbanisation is a necessity, an irreversible process, a trigger to economic transformation. It catalyses social mobility. In developing economies, cities are growth fulcrums. Well planned, well governed sustainable cities are the key to societal progress and prosperity.

- Vikas Singh

Growth, socioeconomic mobility embedded in urbanisation: Economic and demographic ascendancy of cities is coming under greater scrutiny. A Crux study of 18,000 citizens, and 60 economists, policymakers and city administrators across eight of the largest Indian cities provides a valuable insight, and underscores policy priorities. The impact of urbanisation on the economy and the accompanying challenges should be on the high table.

An insight from the study is that cities can generate 85 per cent of net new jobs and contribute to three-fourths of the GDP. They can stimulate a near twofold increase in per capita income during this decade. Urbanisation creates jobs, induces investment, and triggers a consumption boom. It spawns "true" discretionary spending.

A city is a powerhouse of productivity. It's a hub for dense and frequent interactions, compelling individuals to engage with one another. It enables interactions and fosters efficiency. Urbanisation facilitates and generates returns through a multiplier effect. It's a growth engine that catalyses economic development through agglomeration and has spill-over effects.

Policymakers must seize the moment, act decisively to create an urban infrastructure capable of supporting equitable access to urban life, employment, education, public amenities, and entertainment. Unfortunately, our track record has been less than promising. Most citizens are denied basic services.

The study highlights that if we continue with the current trend of 'poorly planned, sprawling and unconnected' pattern of urbanisation, it could impose an estimated cost of up to Rs 2 lakh crores by mid-century. As an example, a 10 per cent increase in a city's dispersion index could lead to about 0.8 per cent decrease in economic growth.