1. 7KH changing
“ PPP has been a success in
India but it is a mistaken notion
to assume there is a one-size-
Õlk%Ydd HHH eg]d
”
F
ew countries are under as much To cope with this problem, the Indian
urban pressure as India. Propelled Government is poised to launch the
by strong economic growth, the US$40b second phase of its urban renewal
country has seen huge numbers of its plan within the next couple of months.
population forsake rural areas in favor of The Jawaharlal Nehru National Urban
its towns and cities. Its urban population Renewal Mission (phase II) will be carried
now numbers more than 400 million — gml gn]j l`] f]pl Õn] q]Yjk lg kmhhgjl
up from 285 million in 2001 — and is infrastructure development in India’s 28
projected to rise to 700 million in 2020. states and will be deployed in addition
Similarly, the number of towns has to the plans of individual state. “The
increased from 5,161 in 2001 to 8,000 [`Ydd]f_] ak fgl gfdq lg Zja_] l`] ]Õ[al
in 2011 — an increase of 55%. Cities, too, but also to build for the future,” he says.
are rapidly expanding. There are currently “Our vision is to facilitate the creation of
55 cities with a population of more than ][gfgea[Yddq naZjYfl$ af[dmkan]$ ]^Õ[a]fl
one million and this is likely to be close and sustainable urban centers.” India
to 70 cities in the next decade. There will `Yk kh]fl f]Yjdq MK)-Z gf l`] Õjkl
also be six megacities with a population phase, which was launched in December
of 10 million — more than in the whole 2005, and there have been some notable
of Europe. successes — particularly the development Urban population of
of metro systems in Delhi, Mumbai, 285 million in 2001
Mind the gap Kolkata, Bangalore, Chennai, Hyderabad
and Jaipur.
Small wonder, then, that Urban
The Minister believes that Indian
Development Minister Kamal Nath is
dYf f]]k lg Z] mk] egj] ]^Õ[a]fldq
focusing on delivering the infrastructure
in the years ahead. “We are working to
necessary to cope with these sweeping
formulate land use plans with town and
demographic shifts.
city planners,” he says. “If you take the
“Although only 31% of India is
population, and divide with the available
urbanized, we have the second-largest
land area, it is one of the most dense
urban population in the world,” he says. 5,161 towns in 2001
countries in the world. Take away the
“But, as India grows, the growth has
mountains, the forests, the deserts, the
preceded infrastructure. We have a huge
rivers and the lakes from the Indian land
af^jYkljm[lmj] ]Õ[al Yf o] f]] lg
mass, and the density of land population
Zja_] l`ak ]Õ[al Yk al j]eYafk Y `m_]
will be very high. So we have to look at
challenge.” This challenge is crystallized
egj] ]^Õ[a]fl mk] g^ dYf$ oal` kljYl]_a[
by the too-familiar sight of slums and
management for land assets.”
homelessness in many Indian cities — the
direct result of too many people moving
to urban areas unable to cope with such
Yf afÖmp

2. Conversation | The changing face of India
face RI ,QGLD
India is on the move. Its
surging economy has
triggered an urban expansion
that is seeing new towns
and cities emerge across
the country. For Urban
Development Minister
Kamal Nath, the focus
now is ensuring that India
has the infrastructure The role of the to transform themselves to remain as
engines of the global economy. New
needed to cope with this private sector economic architecture will be needed for
While much of the impetus for this urban their future.”
transformational change Certainly, the fundamentals that
transformation comes from government —
both national and state — it is clear that make India attractive to investors remain
the private sector also has an important intact. The high potential of the domestic
role to play, particularly in light of a market, driven by an emerging middle
growth rate that has recently slowed to class, cost competitiveness and a huge
5.3%. Although such an expansion would pool of talent continue to make India
be eagerly welcomed by many countries, one of the most preferred destinations
it represents the lowest in seven years for foreign investment. This underlying
^gj AfaY È Yf Y ka_faÕ[Yfl kdgogof strength will help Nath’s drive to deliver
from the double-digit pace of growth that a number of investment-based models of
Mind the gap occurred between 2004 and 2008. private public partnerships (PPP) that can
Minister Nath, however, is keen to play implement the massive projects. “PPP has
down any concerns. “India has become too been a success in India but it is a mistaken
used to a boom,” he says. “So whenever fglagf lg Ykkme] l`]j] ak Y gf]%kar]%Õlk%
it’s not a boom, people think gloom. But all model,” he says. “We are appraising
Urban population of more all the macroeconomic indicators are very various PPP models and would like to
than 400 million in 2011 good, with growth predicted to be 6.8% get a basket of PPP options to continue
next year — which is much more than large-scale development.”
most other countries in the world. This There is little doubt that such
is a perception problem and it affects all investment is needed. “Economic activity
sectors in India. is what attracts people to urban areas,”
“The Government has been seeking to says Minister Nath. ”In the next 10 years
manage the country’s growth — ensuring 70% of new jobs will be created in our
Mind the gap urban areas, and almost 70% of our
that it touches all parts of the country
and all sections of society. This is because GDP will be generated in urban areas.”
growth will not be sustainable unless Irrespective of slowing economic growth,
8,000 towns in 2011 it is inclusive. By contrast, Western India’s towns and cities will be at the
countries are looking at the structure forefront of the country’s development in
of their economies and how they need the years to come.
Citizen Today October 2012 09