Rising urbanization in India poses civic concerns, ASICS report

The Annual Survey of India’s City-Systems (ASICS) 2023 report, the sixth edition, has been released by Janaagraha. This comprehensive evaluation of the quality of governance in Indian cities comes after a gap of five years. Unlike previous editions, this report focuses on the state as a unit instead of ranking cities.

Indian cities face urbanization challenges

The expectations are that Indian cities will host over 800 million people – about half of India’s population – by 2050. If this growth is not addressed effectively, it may trigger civic woes, such as pollution, waste management, traffic congestion, and more, according to the survey by Janaagraha, a Bengaluru-based non-profit organisation.

The ASICS report provides a nationwide analysis of local governance in Indian cities from a citizen-centric perspective. It focuses on four key components: the pace of urbanization, urban legislations, master plans, and regional variations.

The report says that empowered city governments would be a key force in driving local action for global challenges such as climate change, public health including water and sanitation, affordable housing, and gender equity.

The report also reveals that states have implemented 42% of the provisions of the 74th Constitution Amendment Act of 1992, designed to empower local urban bodies. In addition, states have devolved nine out of the 18 functions listed in the twelfth schedule of the Constitution - which outlines powers, authority and responsibilities of urban local bodies - to their city governments.

The report recommends that citizens should elect mayors directly, instead of having them elected indirectly for increased democratic participation. As of 2021, over 1,400 cities in India, some of which have not had directly elected mayors or councils for as long as nine years, lack this direct election process.

Urbanization challenges persist, reforms lag

The report highlights that outlays to the Ministry of Housing and Urban Affairs have increased significantly. However, urbanization is outpacing reform efforts, leading to persistent quality-of-life challenges. The report also reveals that 51% of states/union territories lack accessible urban legislation in the public domain1. Furthermore, 39% of India’s capital cities do not have an active master plan.

The ASICS report also provides insights into regional variations. It notes that Eastern states have better urban legislation, followed by Southern states. In terms of urban planning performance, highly urbanized and large states perform better.

However, the report also highlights several challenges in India’s city systems. Different data sources provide varying estimates of India’s urban population. There are also challenges with fiscal decentralization.

Adequate revenue sources are lacking, and only one state has devolved essential tax powers to municipal corporations. The efficiency of property tax is poor, covering only about 20% of municipal expenditure1. This suggests the need for revenue optimization and efficiency measures.

Urban laws access needs improvement

The Janaagraha report reveals that urban legislation is not easily accessible in the public domain. Only half of India’s 35 states provide access to their municipal laws on the websites of their state urban departments. Furthermore, comprehensive amendments to municipal legislation are available in just four states. Ten states have only uploaded scanned copies of laws, which hinders easy navigation of the documents.

The report cites a 2016 World Bank study suggesting that India’s definition of urban areas is stricter than many other countries. The World Bank estimates that over 50% of India’s population is urban. Satellite data from the Global Human Settlements Layer (GHSL) under the Group on Earth Observations at the European Commission suggests that India’s urbanisation rate reached 63% in 2015, nearly double the rate reported in the 2011 Census.

The Janaagraha report points out that India could be far more urban than currently perceived. Over 470 urban clusters exist when viewed in terms of spatial contiguity, but these clusters are not officially recognised as administrative units. They often span multiple districts and sometimes cross state boundaries. This fails to account for evolving rural-urban transitions and the need for holistic, place-based governance.

Reports state that India's urbanisation rate is 31.1%. However, a higher rate of urbanisation than the national average is being experienced in 181 out of a total of 640 districts. For instance, eight districts in Uttar Pradesh, which has an urbanisation rate of 22.27%, exceed the state average with urbanisation rates ranging from 40% to 68%. Similarly, Odisha, despite being only 16.69% urbanised, has three districts that show urbanisation rates ranging from 35-48%.

Recommendations

The report also highlights that limited powers of mayors and councillors hinder their ability to address delivery issues. Improvements are required in the devolution of funds and functions. Moreover, states have implemented only 42% of the 74th Constitutional Amendment Act. Updating the law to reflect modern urban realities and empowering mayors could enhance governance functions.

Other issues highlighted in the report include the absence of systematic citizen participation and transparency, and the lack of contemporary spatial planning and design standards for public utilities

The ASICS report recommends that Indian cities must reform their institutional and financial capacities to benefit from central government investments in urban infrastructure and services. The report suggests ten “instruments of change” for urban reform, including constitutional amendments, metropolitan governance, empowered mayor-in-council, and participatory governance.

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