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Build new cities: Ensure state-level detailed planning and zoning, realistic project reports and costing

10 Dec 2025
2 min

Urbanization and City Development in India

India's urban landscape is evolving, with the current urban population estimated at 37% by the World Bank, which is below the global average of 58% and significantly lower than China's 66%. Urban areas are the epicenter of economic activity, especially in modern sectors. There is a pressing need to expand India's urban spaces to support economic growth.

Urban Expansion Strategies

  • In 2023, the Government of India (GoI) abandoned its plan to build eight new greenfield cities, shifting focus to offering special borrowing accommodations to states for expanding existing towns or creating new ones.
  • Debate exists between advocating for organic urban growth versus building new cities. Organic growth leverages redevelopment of existing areas, while new cities can integrate modern urban concepts from inception.

Lessons from China and East Asia

  • Historically, China faced criticism for its 'ghost towns,' built in anticipation of future demand. However, these towns have now become vibrant hubs of technology and finance.
  • Example: Xiong'an New Area, initiated in 2017, is expected to become a major economic center, like Pudong New Area in Shanghai.
  • Other successful examples include Zhengdong New Area, which has developed into a significant hub for advanced manufacturing.

Challenges and Success Stories in India

  • India's new town ventures, like New Raipur, have not matched the success of counterparts like Shenzhen. However, extensions in Indore and developments in Navi Mumbai and Greater Noida show promise.

Infrastructure and Connectivity

  • Global connectivity, through airports and rail links, is crucial for modern business hubs.
  • New cities should feature universities focused on research to foster knowledge creation.

Urban Planning and Sustainability

  • New cities should be planned with resilience to climate change, access to water, and proximity to transportation routes.
  • Incorporate underground metro systems, efficient utility conduits, and prioritize electricity over gas for cooking.
  • Urban planning should focus on mixed land use, public transport, and sustainable practices such as water recycling and solid waste management.

Governance and Policy Recommendations

  • Establish accountable urban governance with civic education and efficient public service systems.
  • Implement detailed city planning and zoning with political consensus to ensure continuity across political terms.

The future of India's urbanization involves a balanced approach combining the development of new cities with the expansion of existing urban areas, integrated with modern infrastructure and sustainable practices.

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