Shri Rajiv Gauba, a member of NITI Aayog, emphasized the need for transformative changes in urban governance, planning, and financing to meet the infrastructure demands of India's rapidly urbanizing population.
On October 25, 2026, Shri Rajiv Gauba, Member of NITI Aayog, accentuated the urgent need for comprehensive reforms in urban governance, planning, and financing during the valedictory session of the National Urban Conclave. The address was given with the backdrop of India's ongoing demographic and urban transition.
India’s population is expected to reach approximately 165 crore around 2060, with nearly half of the population predicted to live in urban areas by 2050. This projected increase from the current 50 crore will necessitate a fundamental change in how cities are planned, governed, and financed.
Gauba explained that cities serve as crucibles for economic growth, where talent, capital, and ideas converge. However, he lamented their relative neglect post-independence. He cited several large missions like Smart Cities, AMRUT, Pradhan Mantri Awas Yojana, Swachh Bharat, and the Urban Livelihoods Mission as efforts initiated after 2014 to address this issue.
He discussed NITI Aayog’s Growth Hub initiative, including a ₹1 lakh crore Urban Challenge Fund announced in the 2025-26 budget to develop cities as growth hubs and this year’s budget allocation of ₹5,000 crore each for 7 city economic regions over five years.
Gauba highlighted that empowered City Governments are essential to improve service delivery and ensure effective citizen participation. He proposed the introduction of directly elected mayors with 5-year terms, the Mayor-in-Council system, and timely municipal elections. He advocated for States to devolve all 18 functions to urban local bodies in line with the 74th Amendment, including master planning, water supply, fire services, and traffic.
He stressed that cities cannot be effectively governed from state capitals and City Governments must have the authority and institutional capacity to respond to local needs. This alone will ensure meaningful citizen participation.
Gauba noted that municipal revenues remain low and called for improving property tax and user-charge recovery. He pointed out that while Central Finance Commission grants to ULBs have more than doubled the previous allocation, with their share increasing to 45% from 36%, fund devolution from states to cities remains low.
Shri Gauba also addressed urban planning and housing, calling for reforms to remove restrictive FARs and building norms that constrain land supply and drive-up costs for residential and commercial users. He stressed the need for adoption of mixed-use zoning, development around transit hubs, and land pooling to increase land supply and reduce costs for housing as well as for economic activities.
He pointed to the importance of affordable rental housing for migrant workers, industrial labor, students, and young professionals and urged States to adopt the Model Tenancy Act in order to increase rental housing supply.
Source:
Press Information Bureau
