Urban Issues, Reforms and Way Forward in India

The Government has launched a reform-linked urban investment programme, JNNURM. The paper has analysed urban trends, projected population, service delivery, institutional arrangements, municipal finances, innovative financing, and suggests that India’s future strategy should focus on: (a) inter-government transfers with built-in incentives to improve performance; (b) capacity building of ULBs; (c) investments on asset creation as well as management; (d)integrate urban transport with land use planning; (e) integrate various urban development and related programmes at local, state and national levels; (f) strengthen urban institutions and clarify roles of different organisations; (g) second generation of urban reforms should further focus on regulation, innovative financing and PPP, and climate change initiatives; and (h) different approach of supporting reform-linked investments needed for different states based on level of urbanisation. [Ministry of Finance WP]