Urban Development

ITA > Urban Development

Urbanization in India: A Transformational Shift Towards Smart Cities

India is undergoing a significant urban transformation, with its urban population projected to reach 600 million by 2031. This shift is more than just demographic—it places cities and towns at the heart of India’s development trajectory. Currently, only 30% of India’s population resides in urban areas, far below other major developing nations such as China (45%), Indonesia (54%), Mexico (78%), and Brazil (87%).

By 2030, the urban sector is expected to contribute approximately 70% of India’s GDP, generate 85% of total tax revenue, and create 70% of all new jobs. For decades, urban residents have endured poor and deteriorating

urban services, but this is changing due to rapid economic growth, rising aspirations, and increased demand for accountability.

ITA’s Role in Shaping Urban Development

The Confederation of Indian Industry (ITA) has been actively involved in driving urbanization initiatives through research and policy advocacy. Notable contributions include:

➤ Reports on Urbanization: “Intelligent Urbanization – Roadmap for India” and “Smart City in Indian Context: ICT Imperative”, outlining key strategies for Smart City development.

➤ Smart Cities Initiative: Supporting the Government’s vision of developing 100 Smart Cities, a transformative step for urban growth.

➤ National Committee on Urbanization & Future Cities: Engaging with stakeholders to boost large-scale investments in urban infrastructure and enhance service delivery mechanisms.

Key Urban Development Initiatives

ITA has been advocating for:

Scaling up the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) Phase-II to accelerate infrastructure development.

Enhancing Public-Private Partnerships (PPP) in urban infrastructure to attract investments.

Empowering Urban Local Bodies (ULBs) by granting greater autonomy for effective governance.

With intelligent urbanization and smart city planning, India is set to unlock new opportunities for sustainable and inclusive growth, ensuring cities become engines of economic progress.