Urban Population Growth and Government Recognition

India''s urban population, currently at around 50 crores, constitutes 36% of the total population and is growing at an annual rate of 2% to 2.5%. This rapid urbanization underscores the government''s recognition in the Budget of cities as pivotal growth centres that require sustained investments. With urban areas becoming hubs of economic activity and housing a significant portion of the population, the Budget emphasizes the need for robust urban infrastructure development and enhanced urban services to cater to this demographic shift effectively.

Housing Initiatives

The Pradhan Mantri Awas Yojana (Urban), initiated in 2015, has been a cornerstone in addressing housing needs. It has already delivered 85 lakh housing units targeting the Economically Weaker Sections (EWS) and Middle-Income Groups (MIG). Looking ahead, the Budget proposes an ambitious plan to construct an additional 1 crore housing units in urban areas, with a substantial investment of 10 lakh crore. This includes a significant 2.2 lakh crore commitment from the central government over the next five years, with an initial allocation of 30,171 crore for the current fiscal year. The initiative also includes provisions for interest subsidies to facilitate affordable loans, ensuring accessibility to housing for all urban residents.

Infrastructure Development

Under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), the government aims to improve basic urban infrastructure such as water supply, sewerage, urban transport, and parks. A budgetary allocation of 8,000 crore has been earmarked for AMRUT, focusing on enhancing the quality of life in urban areas. To encourage private sector participation in infrastructure development, projects can utilize Viability Gap Funding (VGF) under the Public-Private Partnership (PPP) mode. Additionally, the Budget allocates 11.11 lakh crore towards comprehensive infrastructure development across various sectors, including highways and urban infrastructure, reflecting a holistic approach to urban growth and development.

Smart Cities Mission and National Urban Digital Mission (NUDM)

The Smart Cities Mission, originally allocated 8,000 crores, has been scaled down to 2,400 crore for 2024-25 to fulfil remaining commitments. This initiative focuses on transforming cities through enhanced infrastructure and technology integration, aiming to improve the quality of life for urban residents. In parallel, the National Urban Digital Mission (NUDM) has been introduced with a 1,150-crore allocation to digitize property and tax records, enhancing financial management and transparency in urban governance. Together, these missions signify the government''s commitment to leveraging technology for efficient urban management and development.

City Planning and Transit-Oriented Development

Transit-Oriented Development (TOD) emerges as a strategic approach in city planning, aiming to create compact urban hubs around transit systems to minimize congestion and promote sustainable development. The Budget emphasizes the development of mobility solutions, including a 1,300-crore provision for electric bus systems to enhance public transport efficiency and reduce environmental impact. Despite challenges such as high initial costs, these initiatives are crucial steps towards building resilient and interconnected urban ecosystems that can support India''s growing urban population while ensuring environmental sustainability.

Conclusion

This detailed summary highlights the comprehensive approach outlined in the Budget to address the diverse challenges and opportunities presented by India''s urbanization process. By focusing on housing, infrastructure, digitalization, and sustainable development, the government aims to foster inclusive growth and enhance the quality of life in urban areas across the country.