India needs to increase urban infrastructure investments to $55 billion a year: World Bank

  • November 15, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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India needs to increase urban infrastructure investments to $55 billion a year: World Bank

Subject :Geography

Context-

  • The World Bank report, titled ‘Financing India’s Infrastructure Needs: Constraints to Commercial Financing and Prospects for Policy Action’, estimated that India would need $840 billion over the next 15 years.

India’s Urbanization requirements-

  • India needs to increase its annual investment in city infrastructure from an average of $10.6 billion a year in the past decade to an average of $55 billion a year for the next 15 years.
  • By 2036, 600 million people will be living in urban cities in India, representing 40% of the population.
  • Currently, the central and state governments finance over 75% of city infrastructure, while urban local bodies (ULB) finance 15% through their own surplus revenues.
  • Currently, only 5 per cent of the urban infrastructure investments were coming from the private sector.
  • Government’s current (2018) annual urban infrastructure investments is $16 billion.

Urbanisation prospects-

  • As per the World Urbanization Prospects, 2018 report produced by the UN Department of Economic and Social Affairs (UN DESA) together, India, China and Nigeria will account for 35% of the projected growth of the world’s urban population between 2018 and 2050.
  • By 2050, it is projected that India will have added 416 million urban dwellers.
  • Currently, India’s population stood at 1210 million in 2011, with an urbanisation level of 31.1% (Census of India 2011).

State-wise Scenario:

  • Over 75% of the urban population of the country is in 10 States: Maharashtra, Uttar Pradesh, Tamil Nadu, West Bengal, Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Rajasthan, and Kerala.
  • Maharashtra leads with 50.8 million persons (13.5% of the total urban population of the country).
  • Uttar Pradesh accounts for about 44.4 million, followed by Tamil Nadu at 34.9 million.
  • Goa is the most urbanised State with 62.2% urban population.
  • Tamil Nadu, Kerala, Maharashtra, and Gujarat have attained over 40% urbanisation.
  • Among the North-Eastern States, Mizoram is the most urbanised with 51.5% urban population.
  • Low-Scoring States: Bihar (11.6%), Assam (14.1%), Odisha (16.68%) and Uttar Pradesh (22.3%) continue to be at a lower level of urbanisation than the national average.
  • Among Union Territories the NCT of Delhi and the UT of Chandigarh are most urbanized with 97.5% and 97.25% urban population respectively, followed by Daman and Diu and Lakshadweep.

India’s Global Commitments regarding Urban Development:

  • The SDGs Goal 11 promotes urban planning as one of the recommended methods for achieving sustainable development.
  • The UN-Habitat’s New Urban Agenda was adopted at Habitat III in 2016.
  • It puts forth principles for the planning, construction, development, management, and improvement of urban areas.
  • The UN-Habitat (2020) suggests that the spatial conditions of a city can enhance its power to generate social, economic and environmental value and well-being.
  • Paris Agreement: India’s National Determined Contributions (NDCs) includes the goals to reduce the emission intensity of the country’s GDP by 33 to 35% by 2030 from 2005 level.

UN-Habitat

  • The United Nations Human Settlements Programme is the United Nations programme for human settlements and sustainable urban development.
  • Established in 1978 as an outcome of the First UN Conference on Human Settlements and Sustainable Urban Development (Habitat I) held in Vancouver, Canada, in 1976.
  • Headquarters at the United Nations Office at Nairobi, Kenya.
  • It is mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all.
  • It is a member of the United Nations Development Group.
  • The mandate of UN-Habitat derives from the Habitat Agenda, adopted by the United Nations Conference on Human Settlements (Habitat II) in Istanbul, Turkey, in 1996.
  • The twin goals of the Habitat Agenda are:
    • Adequate shelter for all.
    • The development of sustainable human settlements in an urbanizing world.

India’s Initiatives for Urbanisation:

  • Schemes/Programmes Related to Urban Development:
    • Smart Cities
    • AMRUT (Atal Mission for Rejuvenation and Urban Transformation) Mission
    • Swachh Bharat Mission-Urban
    • HRIDAY (Heritage City Development and Augmentation Yojana)
    • Pradhan Mantri Awas Yojana-Urban
  • Government Initiatives for Slum Dwellers/Urban Poor:
    • Pradhan Mantri Garib Kalyan Yojana
    • Atmanirbhar Bharat Abhiyan (self-reliant India)
    • Affordable Rental Housing complexes (ARHC)
Geography India needs to increase urban infrastructure investments to $55 billion a year: World Bank