Hindu Editorial Analysis : 28-November-2024

India is facing a critical need to improve its urban infrastructure as the country continues to urbanize at an unprecedented rate. With the urban population set to double from 400 million to 800 million by 2050, addressing these infrastructure challenges is crucial for the country’s future growth and development.

Current Financial Landscape

According to a recent World Bank report, India requires approximately ₹70 lakh crore by 2036 to meet its urban infrastructure needs. However, the government currently invests only ₹1.3 lakh crore annually, which is a fraction of the required ₹4.6 lakh crore per year. This gap highlights the urgent need for innovative financing solutions.

Major Challenges in Urban Infrastructure

1. Municipal Finances:

  • Municipal finances are a key part of urban infrastructure funding but have remained stagnant at just 1% of GDP since 2002.
  • Property tax collection is low, contributing only 0.15% of GDP, and urban local bodies (ULBs) often collect just a small portion of the potential tax revenue.
  • In cities like Bengaluru and Jaipur, ULBs collect only 5%-20% of the tax they should.

2. Structural and Utilization Issues:

  • Cities struggle with low absorptive capacity, meaning they often cannot effectively use the funds allocated for infrastructure.
  • A significant portion of municipal revenue remains unspent, and many cities, like Hyderabad and Chennai, only used 50% of their capital expenditure budgets.

3. Climate and Environmental Challenges:

  • Climate change adds pressure, with issues like flooding, water scarcity, and heatwaves affecting urban areas.
  • Rapid urbanization has led to environmental degradation, including pollution and loss of green spaces.

4. Social and Economic Inequality:

  • “Poverty-driven urbanization” has led to the growth of slums, where access to basic services is limited.
  • Inequality within cities is growing, with many people lacking proper housing, water, and sanitation.

Government Initiatives and Strategic Solutions

Smart Cities Mission (2015):

  • This initiative aims to develop 100 smart cities by using technology to improve infrastructure, traffic management, and waste management.

Atal Mission for Rejuvenation and Urban Transformation (AMRUT):

  • AMRUT focuses on providing basic urban services like water, sewerage, and urban transport to ensure better living standards in cities.

Pradhan Mantri Awas Yojana (PMAY):

  • PMAY aims to provide affordable housing to urban poor, with a focus on slum rehabilitation and promoting public-private partnerships in housing projects.

National Urban Transport Policy (NUTP):

  • NUTP aims to improve urban transport systems by promoting public and non-motorized transport to reduce congestion and pollution.

Technological Integration and Sustainability

Technological advancements are playing a vital role in improving urban infrastructure. Initiatives like the Smart Cities Mission leverage technologies such as 5G, IoT, and Artificial Intelligence (AI) to make cities more efficient and sustainable.

Sustainability is also a key focus in urban development strategies. India is working to integrate renewable energy and green initiatives into urban planning to ensure long-term environmental sustainability.

Why In News

India’s urban infrastructure is at a critical juncture, facing numerous challenges as the country continues to urbanize rapidly, with growing pressures on resources, services, and the environment that demand urgent and innovative solutions.

MCQs about India’s Urban Infrastructure:Challenges and Solutions

  1. What is the projected urban population of India by 2050?
    A. 600 million
    B. 800 million
    C. 1 billion
    D. 500 million
    Correct Answer: B. 800 million
    Explanation: According to the essay, India’s urban population is expected to double from 400 million to 800 million by 2050. This rapid urbanization poses significant challenges for urban infrastructure development.
  2. What is the main source of revenue for municipal bodies in India?
    A. Income tax
    B. Property tax
    C. Corporate tax
    D. Excise duty
    Correct Answer: B. Property tax
    Explanation: The essay highlights that property tax collection is a primary source of revenue for municipal bodies. However, municipal finances in India are insufficient, with property tax contributing only a small percentage of GDP (0.15%).
  3. Which of the following initiatives focuses on providing affordable housing to urban poor in India?
    A. Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
    B. Smart Cities Mission
    C. Pradhan Mantri Awas Yojana (PMAY)
    D. Swachh Bharat Mission
    Correct Answer: C. Pradhan Mantri Awas Yojana (PMAY)
    Explanation: PMAY aims to provide affordable housing for urban poor, focusing on slum rehabilitation, housing through credit-linked subsidies, and partnerships between public and private sectors to promote affordable housing.
  4. What role does technology play in India’s urban infrastructure strategy?
    A. It is not mentioned in the essay.
    B. It enhances urban governance and tax collection.
    C. It improves service delivery and sustainability through initiatives like Smart Cities Mission.
    D. It is primarily used for urban transport systems.
    Correct Answer: C. It improves service delivery and sustainability through initiatives like Smart Cities Mission.
    Explanation: The essay emphasizes that technological advancements, such as 5G, IoT, and Artificial Intelligence (AI), are being leveraged under the Smart Cities Mission to enhance urban infrastructure, improve service delivery, and ensure sustainability.

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