Urbanization, Changing Economic Landscape and Policy Response in India: A Study With Reference To Empowered Action Group States
Urbanization, Changing Economic Landscape and Policy Response in India: A Study With Reference To Empowered Action Group States
Urbanization, Changing Economic Landscape and Policy Response in India: A Study With Reference To Empowered Action Group States
Research Article
India’s neoliberal practices introduced with new economic policy insisted a globalization process
that remains an influence on city development strategy, planning policy and reorganization of
urban space. This has come as growing recognition of cities a key player in economic growth,
globalization and development of the country resulted in the launch of a handful urban policy in
India. They all in common aim at making cities more competitive and investment friendly. Hence,
this gives rise to emergence of new economic landscape. Many states with good resources and
intelligent manpower have been forerunner in materializing the advantages of globalization. The
present paper suggests that the Empowered Action Group States with higher population size
coupled with poverty and low level of urbanization, have not been equally active in spurting urban
growth and bringing faster development in their regions. Many of these States might have not
seen urban development on their prioritized concerns. The study reveals that lack of institutional
capacity, financial bottleneck, and unwillingness to foster urban reforms has been the major
challenges to be addressed.
INTRODUCTION
More people now live in urban areas compared to those in unprecedented spatial transformations as they go ahead
rural in the world. At present, neoliberal-policy with “world-class city” vision-models. Increasing
environment influenced urban policy regime facilitates urbanization is associated with higher spurt in the
process of globalization where intrio- private, corporate economy. However, studying nature of urbanization
sectors and market- have an influential effect on depicts a binary strengthened in the past couple of
development actions in general and urban development in decades as many of urban settlements have sustained
particular in India. With economic shifts, large urban their autonomous position without being dependent on
places, often metros, are imagined as the “centres of large urban settlements. These settlements culminate to
investment”, the “motors of development” and the “engines form what is termed as “subaltern urbanization” in India
of growth”. This kind of imagination is more in economic (see, Denis, Mukhopadhyay and Zerah: 2012). Their way
perspectives than on human or societal grounds. India with of sustenance and growth largely depends on local and
about 31.2 percent level of urbanization contributes regional market and historical processes of development.
65percent of Gross Domestic Product in 2011.Haque and This way of conceptualization contrasts with
Patel note that “the quantum jump in the number of metros understanding of “peri-urban” growth or “suburbanization”
(cities with population greater than one million) during where dependency is more on metropolis.
2001-2011 to 52, compared to there being 35 in 2001, and
which today house about 42.31% of the national urban Along with economic processes, the spatial transformation
population is an unprecedented phenomena” (2017:2). in large urban places is associated with changing planning
Such large cities particularly metros are undergoing perspectives often causing demolitions, evictions and
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Kapil KG 161
forced displacement in urban India. These have largely perform poor on socio-economic development indicators.
affected low-income and marginalized urban residents Most of such states have higher population growth rate
living without legal tenure or slums dwellers. More often and low level of urbanization. The Ministry of Health and
than not, the sanitization drive and environmental Family Welfare, India, established Empowered Action
degradation concerns have impacted the urban poor. Group (EAG) in 2001 to have special focus by monitoring
India's urban population is increasing at a faster rate than and facilitating the attainment of national health goals on
its total population. Census of India 2011 reveals that some of these states which are demographically lagging
urbanization has increased faster than expected and behind. These eight Empowered Action Group (EAG)
reversed the declining trend in the growth rate of the urban states include Bihar, Chhattisgarh, Jharkhand, Madhya
population observed during the 1980s and 1990s. Such a Pradesh, Odisha, Rajasthan, Uttarakhand and Uttar
growth process is also termed as “the urbanization of Pradesh. They account for about 48% of India’s
poverty” (see, Ravallion: 2001), since share of the urban population. The fact is that, the health outcomes are the
poor and slums is increasing in Indian cities. Among the worst in the EAG states, which contribute to the highest
urban poor, the slum dwellers are the poorest. India's disease burden in the country. Urban poverty is visible all-
slum-dwelling population rose from 27.9 million in 1981 to round the towns and cities. The urban poor live in urban
over 40 million in 2001. As per the 2001 census of India, villages – more generally, slums – that skirt the
640 towns spread over 26 states and union territories have neighbourhoods of the better-off, having migrated from
reported existence of slums. The estimated population of their native villages to cities in search of a better life.
slums for 2011 is 93 million. The very definition of slums
points at the acute shortage of drinking water and The present study tries to assess the nature of
sanitation crisis for the slum dwellers. A slum in India is development in these states in the context of changing
defined as a cluster inside urban areas without having economic landscape (after economic reforms) and
water and sanitation access. India’s urban poor live in urbanization. This article makes a critical observation on
diverse settlements, ranging from pavements to makeshift the aspects of urban-economic shift, practices of urban
living spaces at construction sites, urban fringes, development and inclusion and its spatial processes. No
authorized and unauthorized slums. Reality factor is that attempt is made here to provide a detailed empirical
most of the major cities of India lack an effective economic evidence for the perspective, but secondary sources of
plan or urban economic development plan integrated in data is applied to justify the statements framed. The major
urban and spatial planning. Urban sector has remained as questions the present paper addresses are: How urban-
'ambivalent' for development policy for a long time in India. economic shift has influenced present affairs of urban
The ongoing spatial transformations in large urban places management and makeover of the large cities in India and
have drawn wide attention due to their distinct planning, in Empowered Action Group states? What is urban and
development and management practices. Urban planning development status of EAG states in India? What has been
puts forth technocratic remedies, outcome urban space the focus of recently launched major urban policies in
manifest is the kind of various conflicts, contestations and making cities sustainable and inclusive with reference to
exclusion. EAG states? The study offers a critical spatial perspective
on urban scene and developmental status of EAG states.
In addition to these alarming series of events are raised The study is largely qualitative analysis. The secondary
questions on the ability of cities to makeover and bringing source of information and data is retrieved from literature,
benefits to all the urban residents. Cities play a significant published books and articles, institutional reports; and the
role in social, economic, political and ecological systems Census of India 2011, Urban Statistics of India, 2011, the
on the earth surface. So, questions concerning availability Ministry of Urban Development and Poverty Alleviation,
of and access to civic amenities and required infrastructure New Delhi, Selected Socio-Economic Statistics India,
are very crucial since a large number of urban dwellers 2011, the World Bank etc.
lack access to all such amenities and facilities in Changing [Global] Economic Scenario
developing countries like India. There is increasing
attention towards sustainability of urban places as Sekhon argues that “rise of urban population and changed
advocated in the New Urban Agenda and the Sustainable view of economy will also bring new changes in activities
Development Goals 2015. Local and regional ecological, in cities” (2011:77). Here, Sekhon points towards the
social, cultural, political strategies are crucial in realizing changing perception and acceptance of urban places in
sustainable cities across the world. The role of adopted globalization framework for the national
intermediate cities (i.e. from half-a million to two to four economies. Central to opening of national economies and
million population) can be great contribution in the reductions in the public sector controls in various fields is
direction of sustainable development. rolling out strategies of liberalization, privatization leading
to globalization. Hariss states that “[G]lobalization implies
There is found regional disparity in socio-economic economic fusion between national economies so that
development and demographic constituents in the country. interactions decisively affecting national economic activity
The one is wider regional divide is between North vs. start and end not only beyond the power of national
South. The north largely comprises of states which government, but usually beyond even its knowledge”
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Int. J. Geogr. Reg. Plan. 162
(2003:2536). The technological advancements and Table 1. A Comparison of Embedded Liberalism and
increase in fiber optical networks, has given rise to notion Neoliberalism
of “time-space compression” apparently justifies Characteristics Embedded Neoliberalism
contemporary global circulation of flows, capital, people Liberalism - 1980-2004
and the mobility. 1945-1980
Trade Barriers High Low
Since the mid-1970s, the developed nations have shown Capitol Control High Low
the growing significance of neoliberal policies in Power of State High Lower
developmental strategies. It happened because the Relative to Capital
institutional rigidity and hierarchy, national centralization Strengths of Unions Strong Weakening
and over emphasis on domestic institutions could not Business Regulation Strong Weakening
restrain the countries and cities from slipping in economic Status of Social Secure Less Secure
downturn. It reached to the global South by way of Spending
economic structural adjustment programs by the 1980s State-Owned Prevalent Disappearing
and 1990s.Of the global economic institutions, the Enterprises
International Monetary Fund (IMF) and the World Bank Development Domestically- Export-
played a vital part in inducing neoliberal policy intrusion Strategy Generated Oriented
through macroeconomic changes and in dealing with
Focus of Geopolitical Economic
structural issues in many of the countries of the developing
Government Policy Conflict Competition
world (see, Joseph Stiglitz: 2002). Such a neoliberalism
Currency Markets Prices Set by Prices Ser by
has its roots in classical liberalism, which advocated for
Multilateral Global Markets
market-induced political and economic system based on
Agreements
private property rights in the form of the newly emerging
Source: Cohen and Centeno (2006): Neoliberalism and
capitalist mode of production.
Patters of Economic Performance: 1980 to 2000
Economic changes are driven by neoliberal policy
In an interesting research on economic policy shifts in
framework. The neoliberalism differs radically from the
India, Das (2015) stated that ‘new economic policy’
laissez-faire liberalism or to an extent the social liberalism
introduced in 1991 is more than a policy. He critically
that highly prevailed in the post-war periods. The
argues that “it basically represents the demands of the
increasing concerns in neoliberal ideology can be
capitalist class, and more specifically, the demands of
mentioned as follows: neoliberalists envision a state that
hegemonic fractions of the domestic and foreign-diasporic
both elevate the market overall else and adopts market
capitalist class at a particular stage in the development of
logics to guide its own conduct; the state is expected to
Indian and global capitalism”(2015: 716). Thus, a
ask what is efficient, instead of what is right, fair or
democratic state has powers in designing and shaping the
possible; and, the neoliberal (social) imaginary strives to
policy prescriptions towards neoliberalism, by enacting the
embed market logics into the everyday calculations (see
laws, and making amendments in the existing rule of laws
Brodie, 2007).Neoliberal ideology emphasizes the
to facilitate the process and further globalization in the
deregulation of state’s control, reductions in welfare
land. The fact is a tremendous urban spurt has occurred
programmes, and privatization/corporatization of public
as a consequence of government’s economic policy
sector services. Neoliberal policies have huge spatial
directed at restructuring economy which had effects on
implications and effects on the existing urban structure.
urbanization and urban growth. Politically an “[I]deology is
Sager noted that in neoliberal policies “[M]ore weight is put
a force that affects human agency; and it is the strength of
on economic indicators of the effectiveness of the political-
globalization that lies in its ideological influence in peoples’
administrative management system compared to
lives” (see, Heron 2008:88). It is to perpetuate into market
indicators measuring the democratic aspects of
(demand and supply) system where individuals are
politics”(2011:149).Brenner and Theodore (2002)
advised to have freedom of choices in shaping their
elaborated that the “neoliberal doctrines” justifies “the
everyday lives. The relation of neoliberalism with
deregulation of state control over major industries,
geography depicts its spatial diffusion that is context-
assaults on organized labor, the reduction of corporate
specific and uneven across spaces, places and territories.
taxes, the shrinking and/or privatization of public services,
The territoriality is not eroded but reconfigured and re-
the dismantling of welfare programmes, the enhancement
scaled under the process of deterritorialization central to
of international capital mobility, the intensification of
neoliberal practices.
interlocality competition, and the criminalization of the
urban poor”( 2002:350). A perspective on global economic
New Economic Landscape of India
changes which has shifted from the embedded liberalism
to the neoliberalism is provided by Cohen and Centeno
The state controlled economy with public welfare-centric
(2006) in the Table 1. This makes it clearer to understand
approach has drastically transformed in the past couple of
how state functions with regard to neoliberal economic
decades. Present India depicts that “the political reforms
policy introduced in the last couple of decades.
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Kapil KG 163
being undertaken today have a more radical aspect in that economic activities from the centre of the metropolitan
they represent an attempt to incorporate market rationality cities to its peripheral area and other small towns/cities has
into the structures and practices of the state” (Joseph, occurred due to the rapid development of transportation
2007:3213). During the market reform period began with facilities and export-oriented industrialization (see, Haque
New Economic Policy 1991, market forces and and Patel op.cit).
international trades played a larger role in country’s
economic growth compared to that of State controlled Management of Urbanization
period. There has been more divergence than
convergence in per capita income or income differential in Nature of urbanization is complex. In the morphological
the post-reform era in India. Sachs et al. argued that terms South Asian cities have retained a section typically
“states with better infrastructure and human resources known as the ‘old city’. It can be described as “a dense
have been able to attract more investment in the post- concentration of residential cul-de-sacs within spatially
reform era”(2002). Therefore, such processes have self-contained neighbourhoods surrounding, and
resulted in the concentration of economic and commercial intermingling with, market areas” (Heitzman, 2008:181).
activity around metros and million plus cities, blurring limits Though the old city still holds a crucial position in the cities
of urban and rural areas, and rapid expansion of urban (equivalent to Central Business District), new residential
settlements in the metropolitan regions make them as as well as commercial development has taken place in the
crucial units for analyzing current characteristics and peripheral areas. For long, a normal pattern of urban
dynamics. The rise of Special Economic Zones, with development and spatial organization in the cities has
enactment in 2005, is better example of concentration of been an outcome of the intrinsic relationship between
capital and labour. Presently, 351 SEZs are notified, out of planning exercises by the planning agencies and
which 232 SEZs are operational`. The highest number of authorities and the private initiatives and responses.
SEzs are in Tamil Nadu (40) followed by Karnataka (31), Having been introduced in the colonial era the nature and
Maharashtra (30), Telangana (29), and Gujarat (20). The content of urban planning in India has changed more in the
corporate mutual understanding legitimizes an increase in post-economic reforms period. It is being reinvented in
the economic growth as a priority in urban development. terms of more inclusive, equitable and egalitarian in
Consequently, cities tend to acquire new capabilities, practices. Overall, urban development has been
reconfiguring their spaces and compete with others exclusionary in practice further exacerbating the intra-city
through engaging in transnational network. Rationale differences and wider variations in the availability of
behind the thought is that “global and national progress infrastructural facilities as well as basic services. However,
depend on urban economic performance which, in turn, urban management focus has slightly diversified as the
depends on financing needed physical infrastructure, local bodies are given constitutional powers to planning,
industrial capacity, social services, shelter, environmental generating resources and involving corporate players in
protection, and institutional capacity” (Cohen: 2016). urban development. Lall and Vishwanath in an insightful
research based on 2005 economic census highlighted that
There is found a strong relation between urbanization and “India’s population and economic activity are highly
economic development (or per capita income), however, concentrated around the seven largest metropolitan areas.
the country India has a different position at this level. Metropolitan areas are defined as the area within a 50-km
However, latest research points out that “during the last radius of the city centre. That’s around the distance that
few decades, urban growth rates have actually declined, can be travelled in two hours or less, approximating the
and they have done so despite accelerating economic extent of economic interactions within an urban
growth. Since the 1980s, rates of urban growth and area”(2014: 154). Table 2 shows location of population in
economic growth have diverged” (Duijne and Nijman, multiple ring buffers for the seven largest cities in India.
2019:1980). There is also noticeable difference in The World Bank (2014) report mentions that the first ring
urbanization and its linkage to economic development. buffer up to 50km of the center of these seven largest cities
Sridhar’s study stated that “at the global level, the contain 18 percent of national employment. More
urbanization rate and gross domestic product per capita sophisticated industries cluster around the large cities.
are positively related, but the position of India is below the
average level when compared with that of other countries, In 2008, India’s the Ministry of Urban Development and the
which means India’s urbanization at 31 percent lags Ministry of Housing and Urban Poverty Alleviation set up a
behind its development stage (with a per capita GDP of High Powered Committee on urban infrastructure and
$1503) by 10 percentage points”(2016). Gilbert’s (1993) services which suggested standards to be implemented at
“polarization reversal” theory explains how the way urban level (see Table 3). The total investment
developing world’s urbanization process, growth and requirement is estimated at Rs.39.2 lakh crore or $827
pattern of urban settlement system occurs. As per this billion to bridge the urban infrastructure deficit over the
theory, the diffusion of employment opportunities and period 2012-31.
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Int. J. Geogr. Reg. Plan. 164
Table 2. Location of Population in Multiple Ring Buffers for Urban Status of EAG States
the Seven Largent Cities, 2005 (Figure in Percentages)
The eight States of India popularly referred to in
Radius from the centre in
administrative parlance as the Empowered Action Group
Major kilometers Total
(EAG) are Uttarakhand, Rajasthan, Bihar, Uttar Pradesh,
Aspects Less 50- 100- 200- 300- More Jharkhand, Odisha, Chhattisgarh, and Madhya Pradesh,
than 100 200 300 450 than450 which is home to 45.8% of the total population and of 31%
50 percent of urban population of the country. The EAG
Land area 1.1 3.3 11.9 16.7 24.7 42.2 100.0 States have been subject of concern for policy makers and
Total 8.9 4.5 13.7 16.3 20.6 36.0 100.0 planners in the field of socio-economic development and
Population regional disparity. Huge patch of land covering Madhya
Urban 24.9 3.6 12.9 17.2 19.2 22.1 100.0 Pradesh, Chhattisgarh, Bihar, Jharkhand and Odisha have
Population been hot spots of insurgency activities and termed as Red
Rural 2.8 4.9 14.0 15.9 21.1 41.3 100.0 Corridor. The socio-political disturbances have led to their
population miserable conditions. The population growth has been
Population 2451 427 364 306 262 269 315 high coupled with strong existence of illiteracy, poverty and
density (per low level of urbanization. For instance, the poverty ratio for
sq.km) Bihar was 34.1% for rural and 31.2% for urban area in
Urbanizatio 77.7 22.4 26.2 29.4 25.9 17.1 27.8 2011-12, with an overall poverty ratio of 33.7%. The State
n rate of Bihar accounts for 8.6% of India’s total population, but it
Source: The World Bank (2014):Urbanization Beyond has only 3.1% of country’s total urban population. Apart
Municipal Boundaries from recording low ‘level’ of urbanization, Bihar has also
recorded a low “pace’ of urbanization. Between 2001 and
Table 3. High Powered Committee Service Standards in 2011, the level of urbanization increased only 0.8% from
India 10.5% in 2001 to 11.3% in 2011. Uttar Pradesh has made
Water Supply 100 percent piped water, 24*7 flow, considerable efforts to reduce poverty yet the rate of
and 135 lpcd consumption per capita poverty in the State is higher than the national average
Sewerage Underground with 100 percent collection owing to a low literacy rate and large population. About
and treatment of waste water 45.7% of urban people lived in poverty. The percentage of
Solid Waste 100 percent collection, transportation and urban population to total population of the State stands at
treatment 22.28% as per 2011 Census whereas it was 20.78% in
Urban Roads Area under roads 11 for cities 2001. Thus, an increase of 1.50% points has been
(percent) 7 for towns recorded in urban population. However, the level of
Roads density 12.25 for cities urbanization 22.28% in the State is quite low as compared
(km per sq km) 7 for towns to the all India figure. There are marked regional
Storm Water Networking covering 100 percent road imbalances in the level of urbanization in the State.
Drains length on both sides of the road Eastern Region of UP is least urbanized.
Urban Rail-based and road-based Mass Rapid These states have prominent concentration of stratified
Transport Transit System (MRTS) for cities with societies with caste based feudal mindset. In the index of
population 1 million and above; city bus backwardness, most of these states perform higher. The
service for smaller cities and towns NITI Aayog’s Healthy States Progressive India Report
Street Illuminance: 35Lux for all cities and towns 2019, noticed a decline in health sector performance
Lighting 40 m spacing for major roads 45 for among five of the EAG states between 2015-16-2017-18.
collector roads and 50 m for access road Five of these are Bihar, Uttar Pradesh, Uttarakhand,
spaces Odisha and Madhya Pradesh. However, States like
Traffic Type of Infrastructure City population Rajasthan, Jharkhand, and Chhattisgarh have shown
Support over improvement in their health indices scores. Thus, the EAG
Infrastructure Intelligent transport 50,00,000 States have shown signs of promising economic growth in
systems and area traffic the recent years and that’s exhibited in the improvement of
control the net gross state domestic product. The group states
Vehicular and pedestrian 10,00,000 have lower urbanization than the national average (24%).
underpasses Table 4 shows that EAG states rank poor in urban
Parking systems 1,00,000 demographic transition. They have higher annual
Bus Terminals 50,000 exponential growth rate and share of slum population to
Bus depots 20,000 total urban population. Some of them figure highest in
terms of urban below poverty line people such as in Bihar
Source: Ministry of Urban Development, Government of (31.2%), Uttar Pradesh (26.1%), Jharkhand (24.8%),
India, 2008 Chhattisgarh (24.8%), Madhya Pradesh (21.1%) and
Odisha (17.3) much higher than national average (14%) of
country.
Kapil KG 165
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Int. J. Geogr. Reg. Plan. 166
Table 4. Urban Scene of Empowered Action Group (EAG) States of India, 2011
Sector Uttarakhand Rajasthan Uttar Bihar Jharkhand Odisha Chhattisgarh Madhya EAG Total/ India's Total
Pradesh Pradesh Average
Rural 70,36,954 5,15,00,352 15,53,17,278 9,23,41,436 2,50,55,073 3,49,70,562 1,96,07,961 5,25,57,404 43,83,87,020 83,37,48,852
Urban 30,49,338 1,70,48,085 4,44,95,063 1,17,58,016 79,33,061 70,03,656 59,37,237 2,00,69,405 11,72,93,861 37,71,06,125
Total 1,00,86,292 6,85,48,437 19,98,12,292 10,40,99,452 3,29,88,134 4,19,74,218 2,55,45,198 7,26,26,809 55,56,80,832 1,21,08,54,977
Level of 30.23 24.87 22.27 11.29 24.05 16.69 23.24 27.63 24 31
Urbanization
AEGR of Urban 3.36 2.55 2.53 3.03 2.8 2.39 3.5 2.29 2.80 2.76
No of UAs 11 28 67 14 11 14 14 37 196 474
Statutory Towns 74 185 648 139 39 107 168 364 1,724 4,041
Census Towns 41 112 267 60 189 116 05 112 902 3,892
Percentage of SCs 12.98 15.74 12.74 10.40 10.49 13.84 12.84 15.31 13.04 12.60
Percentage of STs 0.88 3.19 0.23 0.59 9.79 8.50 9.96 5.18 4.79 2.77
Slum Population 4,87,741 20,68,000 62,39,965 12,37,682 3,72,999 15,60,303 18,98,931 56,88,993 1,95,54,614 6,54,94,604
Percentage of 67 81 82 83 63 60 70 75 73 66.79
House Owners
HHs with SDW 98.7 94.3 97.9 94.7 78.4 79.8 93.9 92.1 91 91
HHs with 99.1 98.4 92.4 89.2 94.4 97.3 99.1 99.4 96 98
Electricitya
HHs with Laterineb 67.8 65.4 83.8 71.3 79.1 68.8 72.1 76.8 73 82
Percentage of HHs 92.9 86.04 93.36 71.39 83.12 99.04 68.9 82.34 85 81.71
with Drainage
Facility
Urban Literacy Rate 84.5 79.7 84.5 76.9 82.3 85.7 84 82.8 83 84
Urban Work 32.36 32.27 31.16 28.62 29.26 34.81 38.17 34.18 33 35
Participation Rate
Urban Below 10.5 10.7 26.1 31.2 24.8 17.3 24.8 21.1 21 14
Poverty Line
Urban IMR 23 32 41 34 28 40 41 39 35 29
Percent of Urban 1.85 4.23 2.33 2.96 5.51 1.82 1.19 5.4 3.16 3.64
development to
development
expenditured
Per Capita NSDP 12,687 42,434 26,903 18,928 31,993 40,412 41,167 32,253 30,847 53,331
(Rs)
Average Per capita 816.95 1,603.85 1,065.61 986.95 771.52 1,067.69 3,789.65 2,348.05 1,556 2,462
Municipal
Expenditure(Rs)e
Source: Handbook of Urban Statistics 2019, Ministry of Housing and Urban Affairs, Government of India
Primary Census Abstract Final Data 2011
UAs: Cities with more than 1,oo,ooo population
a: for year 2012; b:for year 2012; c:for year 2011-12; d: for year 2015-16; e: for year 2006-08
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Kapil KG 167
Table 5.Showing Annual Exponential Growth Rate of competitive economic system increases” (The Royal
Urbanization Across States Swedish Academy of Engineering Sciences, 2017). There
S/N States/UTs 1961- 1971- 1981- 1991- 2001- is dearth of analysis showing relationship between
71 81 91 01 11 population growth and urbanization. It results in a way that
India 3.21 3.83 3.09 2.73 2.76 regions with higher population growth rate, have lower rate
1 Andhra Pradesh 2.92 3.96 3.55 1.41 3.1 of urbanization and vice versa. For example, most of
2 Arunachal 8.74 9.28 7.54 3.2 developing countries like India have significantly higher
Pradesh population growth rate but level of urbanization in not high.
3 Assam 5.01 3.27 3.27 3.16 2.43 So, the drivers of urbanization range from population
4 Bihar 3.64 4.37 2.65 -2.7 3 growth, migration, reclassification of rural settlements as
5 Chattisgarh 3 “urban” to economic restructuring and its urban impacts. In
6 Goa 8.24 4.66 3.96 -2.7 3.01 India, during the past few decades there has been upsurge
7 Guajarat 3.44 3.47 2.9 2.88 3.06 in urban population less by natural increase in population
8 and more due to migration, reclassification of rural
Haryana 3.04 4.67 3.58 4.13 3.66
settlements, delimitation of urban areas and economic
9 Himachal 3.05 3.19 4.76 0.74 1.45
restructuring. Shaw notes that “[T]he growth of smaller
Pradesh
cities and towns has been mostly by natural increase, but
10 Jharkhand 2.80
their economic functions are also changing. Smaller urban
11 Jammu & 3.04
places are increasingly serving as dynamic markets for
Kashmir goods and services of both the old (pre-liberalization) and
12 Karnataka 3.02 4.1 2.55 2.58 2.72 the new (post-liberalization) economy” (2019: 1).
13 Kerala 3.05 3.19 4.76 0.74 6.56 Globalization processes has created its own course in the
14 Madhya 3.83 4.45 3.71 0.48 2.28 post-liberalization in India.
Pradesh
15 Maharashtra 3.42 3.36 3.27 2.96 2.12 Urban Policy and Governance
16 Manipur 7.37 9.76 2.98 1.2 3.55
17 Meghalaya 2.25 4.95 2.74 3.19 2.7 There is no equality and similarity in the emergence of
18 Mizoram 9.74 11.71 9.57 3.3 2.42 certain regions as well as metropolises as the appropriate
19 Nagaland 9.87 8.5 5.58 5.18 5.15 destinations of the globalization in India. i Different
20 Odisha 5.09 5.22 3.08 2.61 2.37 metropolises have different characteristics of urban
21 Punjab 2.25 3.68 2.56 3.18 2.28 development and city policy guidelines. A wider economic
22 Rajasthan 3.25 4.62 3.31 2.74 2.56 recognition of these cities shaped social geography as well
23 Sikkim 10.55 9.54 -3.29 4.84 9.29 as geography of infrastructural facilities. The economic
24 Tamil nadu 3.27 2.47 1.76 3.59 2.4 capital of India, Mumbai adopted proactive policy in
25 Tripura 4.55 3.29 6.19 2.59 5.65 making the city an important centre of finance, services,
26 Uttarkhand 3.49 transnational companies’ headquarters and the gateway of
27 Uttar Pradesh 2.68 4.74 3.29 2.22 2.52 capital flows at the cost of industrial decline and leaving
28 West Bengal 2.5 2.76 2.54 1.89 -2.61 aside poor. More often than not, metros cities development
29 Andaman & 6.22 6.38 4.1 4.42 1.54 visions try to replicate the “best practices” of urban
Nicobar Islands planning and economic development as well as provision
30 Chandigarh 8.53 4.96 3.07 3.42 2.38 of infrastructural facilities found in the world-class cities i.e.
31 Dadar & Nagar 5.28 14.6 11.53 centres of high technology, industry, trade, banking,
finance, professional activity, and higher quality arts. An
Havelli
externally funded ‘urban development projects’, first of its
32 Daman & Diu 5.54 2.12 4.93 1.87 11.58
kind, aimed at providing the basic services in informal
33 Lakshdweep 4.46 -0.76 6.23
settlements were not in compliance with master planned
34 NCT of Delhi 4.36 4.58 3.79 4.2 2.35
development approach. The 1990s has seen tremendous
35 Puduchery 8.01 4.66 4.92 2.26 2.7 attempt in the country towards management of urban
Source: Based on Reports of Census of India affairs and urban development. The74th Constitutional
Amendment Act was passed which enabled
Common Drivers of Urbanization and Urban Change decentralization of urban functions and governance in the
country. This made three-tier government system in the
The reason for why people choose to live in urban places country. Figure 2 shows urban response in India in order
is historically proven that there are advantages in having to tackle urban development challenges with growing
lots of people live in same place. Three benefits of such a urban population. There has been a change and shift in
concentration in urban agglomerations include economic, urban response by either by launching development
social, plus resources and environmental. A report states programmes, policy, schemes or missions in conjunction
that “[W]hen lots of people live in a small area, the with the Five Year Plans with the growing urban population
opportunities for education, work and developing a of the country.
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Int. J. Geogr. Reg. Plan. 168
Table 7. AMRUT Outlay and Sector Wise State Annual Action Plan
Sector Uttarakhand Rajasthan Uttar Bihar Jharkhand Odisha Chhattisgarh Madhya EAG Total India's
Pradesh Pradesh or Average Total
AMRUT 593.02 3223.94 11421.67 2469.77 1245.74 1598.96 2192.76 6200.67 28,946.53 77640.02
Mission (RS
in Cr)- SAAP
Central 533.72 1541.95 4922.46 2469.77 566.17 796.97 1009.74 2592.86 14,433.64 35989.70
Assistance
(Rs in Cr)
Water Supply 317.69 1007.36 5532.63 2184.25 772.64 1394.06 1706.92 1855.01 14,770.56 -
Sewerage 225.74 2107.75 5642.93 37.74 444.10 157.81 447.44 3712.25 12,775.76 -
Storm Water 34.97 29.83 - 182.34 - - - 217.41 464.55 -
Drainage
Green 14.62 79.00 246.11 65.44 29.00 47.09 38.40 149 668.66 -
Spaces/Parks
Non- - - - - - - - 267.00 267.00 -
Motorized
Transport
No of Cities 07 29 61 27 07 09 09 34 183 500
covered
No of Smart 01 04 12 03 01 02 02 07 32 99
Cities
Source: The Ministry of Housing and Urban Affairs
Urban Liveability Concerns in EAG States Governments seem moving sluggishly in devising,
delivering and vision-oriented responses to the challenges
Since there been a more push from the National and problems faced by the urban settlements in their
Government towards rejuvenation, makeover and pan-city jurisdiction among the EAG states. The Urban Local
development of urban areas, the States and Local Bodies (ULBs) have been less pro-active in responding to
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Int. J. Geogr. Reg. Plan. 170
challenges and institutional hurdles experienced by have also benefited growth in some of the secondary
concerned cities and towns. Most of the recently launched metros like Jaipur, Kanpur, Lucknow, Patna, Bhopal,
schemes and missions are centrally administered and Varanasi, Jamshedpur etc. Several metropolitans became
ULBs lack command over city development. However, increasingly attractive for setting up new industries and
much of the present hype in urban development sector in SEZs. Global influence on local can be seen with the
the country is driven by demands of capital investment and number of Foreign Direct Investments in larger cities, the
its spatial fix in and around the major urban centres. What office spaces for information technology enabled services.
appears is that economic restructuring of urban space is Therefore, there is direct impact on the built environment
legitimized by á growing consumption culture, rising through increasing use of global architectural firms for the
middle class, increasing aspirations of non-resident planning and design of information technology parks and
Indians and the act of urban planning response. Such such workspaces, upmarket real estate projects and malls.
examples are found in urban space of capitals like Jaipur, Million plus cities of EAG states too offer a new opportunity
Lucknow, Bhopal, New Raipur, and Bhubaneswar. in terms of affordable spatial locations for the market to
grow, multinational corporations and their establishments
Million plus cities of EAG states are showing signs of faster and the real estate business to flourish. Cities of these
growth than the mega cities of the country, as shown in the states have potential to change the mega-urban
Table 8. Cities like Jaipur and Lucknow registered a concentration by providing new avenues for capital
decadal growth rate of 53.09 percent and 35.81 percent investment and infrastructure support system. But equally
respectively during 1991-2001 and that of 32.23 percent they also need to focus on improving the quality of life, well
and 27.99 percent respectively during the 2001 -11. The being and liveability of their population.
increasing congestion and crowding in the primary metros
Table 8. Showing Growth of Select Million Plus Cities in EAG States, 1991-2011
Cities/Urban Census Census Census Percentage Percentage Exponential Exponential
Agglomerations 1991 2001 2011 decadal decadal Growth Growth
ofEAG States growth rate growth rate Rate (%) Rate (%)
1991-2001 2001-2011 1991-2001 2001-11
Noteworthy is that outsourcing of urban planning and combination of environmental characteristics and personal
management to international technology giants has characteristics (see, Ahmed, El-Halafawy and Amin,
weakened democratic planning processes and public 2019). Performing better on liveability parameters would
accountability. This trend exhibits the kind of fixation on lead to realization of urban sustainability in future. Notions
new urban projects like smart cities contributed to peri- like “quality of life”, “well being”, “ease of living” etc. all in
urban development, regional fragmentation and social common point to the nature of urban liveability. This also
exclusion in urban space. includes aspects like cleanliness, safety, and existence of
plants on the local surroundings. Therefore, the liveability
However, major cities across the world have shifted their index provides insight into the quality of life available to
agendas towards adoption of and implementation of people and provides evidence on the future state of the city
sustainable development practices in order to improve in terms of its liveability. The Liveability Index 2012-the
quality of life, inclusiveness and liveability. The Best Cities in India prepared by the Institute for
Sustainable Development Goal 11 is meant to work upon Competitiveness, India presented a picture of the living
making urban settlements inclusive, liveable and conditions of India’s 50 cities based on eight pillars and
sustainable habitats for humans. The liveability of a city is twenty constituent sub-pillars. The eights pillars are:
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Kapil KG 171
demographic, education, health and medical standards, and Corporations, hinges on proper implementation of 74th
safety, housing, socio-cultural and natural environment, Constitutional Amendment Act which entrusted Urban
economic environment, and planned environment. To our Local Bodies to function democratically and pursue and
surprise, there was none of cities from EAG states in the implement urban planning and governance effectively.
top ten ranking of liveable cities index. There were only two Whether recently launched policies and schemes, which
cities Noida and Allahabad ranking 16th and 25th in the lack on housing and urban poverty reduction measures
first half of fifty such cities. Some of the cities were placed fronts, would strengthen purpose and process of urban
in second half of such fifty cities. Their rankings were as decentralization in EAG States, remains to be researched.
follows: like Jaipur (26th), Bhubaneswar (27th), Lucknow
(28th), Varanasi (29th), Meerut (30th), Agra (32th),
Jabalpur (34th), Jamshedpur (36th), Bhopal (38th), CONCLUSION
Dehradun (40th), Dhanbad (43th), Ranchi (45th), Patna
(48th) and Kanpur (49th). This analysis indicates to the fact Urban places particularly cities are growing entities and as
most of these cities need to work effectively on improving nodes in spatial, economic, social, political geographical
their quality of life and liveability standards in order to networks. India’s neoliberal practices introduced with new
become more inclusive and sustainable. There has been economic policy insisted a globalization process that
attempt by the Government of India under the Ministry of remains a influence on city development strategy, planning
Housing and Urban Affairs towards this direction by policy and reorganization of urban space. This has come
launching Ease of Living Index. The report of Ease of as growing recognition of cities a key players in economic
Living Index 2018 places 111 cities according to their growth, globalization and development of the country
ranking. The Ease of Living Index captures the breadth of resulted in the launch of a handful urban policy in India.
the quality of life in cities across 4 pillars and15 categories They all in common aim at making cities more competitive
using 78 indicators, of which 56 are core indicators and 22 and investment friendly. Hence, this gives rise to
are supporting indicators. The 4 pillars include institutional, emergence of new economic landscape in terms of
economic, social and physical dimensions. Cities from Special Economic Zones, Information Technology Parks
EAG states figured as follows: three cities Raipur (7th), etc. States with good resources and intelligent manpower
Indore (8th), and Bhopal (10th) in among the top ten cities; have been forerunner in materializing the advantages of
Bilaspur (13th), Jabalpur (15th), and Bhubaneswar (18th) globalization. Contemporary urbanization appears a
in top twenty cities; Jaipur (30th) in top thirty cities; Gwalior process that is more caused by political economical
(32th), Varanasi (33th), Jhansi (34th) in top forty cities; changes and exhibits a complex of urban life: change in
Ghaziabad (46th), and Rae Bareli (49th) in top fifty cities; technology, economy, and culture and a blend of rich,
Jodhpur (53th), Udaipur (54th), Agra (55th), Kota (59th) in poor, homeless and vulnerables. The present paper
the sixty cities; Muzaffarpur (63th), Sagar (66th), Ranchi outlined that the Empowered Action Group States with
(68th), and Pimpri Chinchwad (69th) in the seventy cities; higher population size coupled with poverty and low level
Lucknow (73th), and Kanpur (75th), and Dehradun (80th) of urbanization, have not been equally active in spurting
in the eighty cities; Bareilly (81th), Aligarh (86th), Rourkela urban growth and bringing faster development in their
(87th), and Moradabad (89th) in the ninety cities; Dhanbad regions. Many of these States might have not seen urban
(94th), and Allahabad (96th) among the hundred cities; development on their prioritized concerns. The study
Meerut (101th), Bhagalpur (107th), Bihar Sharif (108th), reveals that lack of institutional capacity, financial
and Patna (109th) among one hundred and ten and city of bottleneck, and unwillingness to foster urban reforms has
Rampur (111th) occupied the last rank in the index. The been the major challenges need to be addressed.
ranking index of cities of EAG states like Uttar Pradesh,
Bihar, Jharkhand, Rajasthan, Uttarakhand must improve Though there has been a series of urban policy in the
in making urban space liveable and inclusive. recent past to improve urban conditions and infrastructure,
many of EAG States have not set any exemplary
The idea and process of “comprehensiveness” in framework in dealing with complex urban issues and
preparation, development and execution of development challenges faced. Inclusive urban governance remains to
schemes is not given due importance and diverse views of be assured where all the stakeholders including poor and
public are often sidelined. Who governs the city? This marginalized groups are given importance and their voices
question is very crucial in the context of changing urban are heard in decision making processes. The EAG States
priorities and public policy. Whether city dwellers are made should move towards better adaptation of Sustainable
stakeholders, local councils are empowered or not, Development Goals to foster urban in general and urban
grassroots policies are inclusive, urban poor and development in particular to make cities sustainable and
marginalized are listened to etc. The inclusive governance resilient.
plays an important role in making inclusive decisions,
distribution of amenities, public facilities, development of
infrastructure, and sustaining well being of the people. The
inclusivity of Indian cities, particularly Municipal Council
Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
Int. J. Geogr. Reg. Plan. 172
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Urbanization, Changing Economic Landscape and Policy Response in India: A Study with Reference to Empowered Action Group States
plus population (adding two more-Ahmedabad and Delhi to
i MCS), B-28 cities having one million population, and C-28
In India, globalization process began with the structural
adjustment program which aimed at: deregulation and identified cities as of religious/historic and tourism importance.
privatization of domestic economic activities in the form of JNNURM have two sub-missions namely: Urban Infrastructure
debureaucratization and encouragement to competition in the and Governance, accounts for 65% of the totals funds, and Basic
domestic market, and globalization of the Indian economy. Services to the Urban Poor, accounts for 35% of the total funds.
In addition, for other than 63 cities, there are two other
ii components: Urban Infrastructure Development of Small &
The JNNURM is only large scale urban renewal and
development mission in the post-liberalized India. The sixty Medium Towns, and Integrated Housing and Slum Development
three cities are in three category: A-07 cities having 4 million Programme.