Mumbai has contributed significantly for the economic growth of the country and accounts for over 60% of the state’s GDP. Mumbai’s per capita income is estimated to be little less than three times the national level. Thus, Mumbai attracts large number of migrants from other regions. Due to the increasing population the population density of Mumbai is at a crushing 37,000 people per sq. km of built-up area as against the national population density of 382 people per sq. km. This contrast highlights the challenge of urban governance in face of increasing economic growth of cities.

Urban cities are the drivers of economic growth in India. Cities occupy just 3% of the nation’s land but their contribution to gross GDP is a massive 60%[1]. Better employment opportunities is the single highest cause for rural to urban migration. Studies suggest that about 56% of the migrants have indicated a spike in their income after migrating to a city. Household remittances form internal migrants were twice that of household remittances sent by international migrants. City provides better job opportunities in both skilled and unskilled sectors. Large enterprises, factories that employ skilled labours are predominantly set up in urban areas. Right from the construction to regular maintenance of these facilities there is an associated steady demand for unskilled labours also. Migration helps fill the gap in the demand for labour supply and helps the migrants to support their family and learn new skills. As more and more regions of the country transition into urban society, effective urban management is important to harness its economic potential. To these goals, Urban management in India must be strengthened by enabling more autonomous urban local bodies and a robust & timely city planning. 

Local bodies in India have limited power and resources to build themselves to cater to the needs of the future. The urban local bodies have very less defined devolution and are dependent on the state government’s discretionary allocation of funds. Hence, local bodies are not independent and are subject to oversight by the state governments. The functions delegated to local government is also highly restricted in India with focus on crore functions like streetlights, sanitation and local roads. Though the constitution devolves 18 functions, the specifications vary from state to state.

Most of the decision-making powers do not reside with local bodies but are delegated to specialised bodies and institutions that are under the control of the state government. For example, various administrative aspects of Chennai city are handled by Greater Chennai Corporation, Chennai Metropolitan Control Authority, Chennai Metropolitan Water Supply and Sewerage Board and Metropolitan Transport Corporation (Chennai) Ltd etc. independently. Hence, the decision-making power ultimately resides with the state government instead of local body. Such a mechanism also results in challenges in coordination and even jurisdictional conflicts. Urban local bodies in India generate own source of revenue, but the quantum of revenue (e.g. property tax rate) is determined at the state level. Strengthening urban local bodies by providing them with more functional and financial autonomy can help the bodies govern themselves better.

Along with these institutional changes, we also need to revamp our urban planning methods. Currently, most of urban development happen post facto as a reactionary measure. People migrate to peripherals of a city which is not developed and start occupying the space, post which local administration start expanding capacities for the already migrated population. This lack of timely planning leads to traffic congestion, water scarcity, urban flooding, pressure on infrastructure etc. The 74^th amendment of the constitution envisioned transfer of the urban planning function from the state government to the elected urban local bodies. But it has not yet been implemented. According to Niti Aayog, 65% of urban settlements do not have a master plan. This leads to piecemeal interventions, haphazard constructions urban sprawl etc. Town and country planning department in the state governments must be revamped to provide expert guidance and the actual planning must happen at the local government level with active people participation. This will also entail efforts from government to strengthen the community of urban planning professionals in the country.

These changes in the institutional structure and planning mechanisms needs to be carried out at the earliest to enable India to profitably cultivate benefits of increasing urban migration in the country and manage it in a sustainable way.

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[1] United Nations’ 2018 Revision of World Urbanization Prospects