Thiruvananthapuram: Urbanisation will be a crucial driver of India’s economic growth and its transformation into a developed nation by 2047, said 16th Finance Commission chairman Arvind Panagariya.Speaking at Lok Bhavan Conversations on Urban Areas as Growth Engine for Viksit Bharat 2047 at Lok Bhavan on Tuesday, Panagariya said India’s aspiration to become a developed and globally competitive $30-trillion economy by 2047 could not be achieved without productive, resilient and well-governed cities.He pointed out that every developed country has a high degree of urbanisation. “India, too, has a long history of urban development and should not be apologetic about pursuing it,” he said.He said the focus of urbanisation should go beyond improving living conditions for existing populations. Cities must become business-friendly and job-friendly so that they can attract people from rural areas and generate employment.“Economic activity drives urbanisation,” he said, stressing that employment generation would also help transform rural settlements and peripheral areas of major cities and towns into vibrant urban spaces.“The scarcity and high cost of urban land are among the biggest constraints,” he added.Acquiring large parcels of land for industrial and business activities remains difficult because land holdings are fragmented and definitive land titles are often unavailable.Panagariya cited the example of the Singur project in West Bengal, where thousands of individual land parcels had to be acquired, in contrast to United States where land ownership is less fragmented.He called for reforms to make land available easily for economic activity and to reduce the bottlenecks associated with acquisition and urban development.He also stressed on the need for stronger municipal administration and better coordination among agencies.Cities need governance systems capable of supporting economic activity, infrastructure development and job creation, he said.Governor Rajendra Vishwanath Arlekar said urbanisation should not be equated with westernisation.“Urbanisation should be initiated through our roots,” Arlekar said emphasising that urban development must evolve from the country’s culture, traditions and thought processes rather than importing western models.
