UPSC DAW Mains Answer Writing 5th July 2025

UPSC DAW Mains Answer Writing 5th July 2025

Question

‘Indian cities are central to the country’s future economic growth yet remain constrained by infrastructural and governance challenges.’ Discuss the role of urban centres in driving economic development and suggest measures to unlock their full potential. (10 marks, 150 words) 

Model Answer

Introduction:  

  • The Economic Survey 2022-23 emphasizes that urbanization is a key driver of growth, with cities contributing over 65% to India’s GDP, and employing nearly 70% of its workforce in non-agricultural sectors. As per NITI Aayog, just 15 Indian cities contribute 30% of the GDP and hold the potential to push India towards its $30 trillion economy vision by 2047. 

 Role of Urban Centres in Economic Development: 

  • Engines of Innovation & Investment:  

  • Cities like Bengaluru, Hyderabad, Pune, and Gurugram house global capability centres (GCCs), R&D hubs, and start-ups, fostering tech innovation. 

  • Employment Hubs: 

  • Urban centres absorb a significant share of India's internal migration and offer employment in manufacturing, services, and informal sectors. 

Case study 

Bengaluru has transformed from a quiet pensioners’ paradise into India’s premier IT and innovation hub. Hosts over 5,000 IT companies, including global giants like Infosys, Wipro, IBM, and Accenture. Generates employment for over 1.5 million people directly in the tech and services sector. 

  • Infrastructure-led Growth: 

  • Massive investments in metro systems, smart cities, and logistics corridors (e.g., DMIC, Gati Shakti) are catalysing economic connectivity. 

  • Cultural and Heritage Capital:  

  • Cities such as Kolkata, Kochi, Varanasi are also drivers of heritage tourism, with multiplier effects on the hospitality and informal economy. 

 Constraints Hindering Urban Growth: 

  • Urban Planning Deficit:  

  • Only 63% of 7,933 cities have master plans (MoHUA, 2023); lack of professional urban planners (1 per 1,00,000 people – NITI Aayog). 

  • Poor Waste & Water Management:  

  • India produces 150,000+ tonnes/day of waste, but only 30% is processed scientifically; water losses in transmission = 40-50% (NITI Aayog, 2018). 

  • Air Pollution & Climate Risk:  

  • 42 of the world’s 50 most polluted cities are in India (IQAir Report, 2023); urban heat islands & flooding increase vulnerability. 

  • Digital Infrastructure Gaps:  

  • Average mobile internet speed (~100 Mbps) lags behind global cities (e.g., Seoul: 1 Gbps) – hinders knowledge economy. 

  • Urban Congestion:  

  • Average commuter in Indian metro cities spends 1.5–2 hours daily in traffic (BCG, 2023); contributes to productivity loss & pollution. 

 Measures to Unlock Urban Potential: 

  • Institutional and Governance Reforms: 

  • Implement 74th Constitutional Amendment fully - devolve power, finances, and functionaries to urban local bodies (ULBs). 

  • Digitise land records and adopt Land Value Capture (LVC) mechanisms to finance city development (OECD-G20 Report 2023). 

  • Improve property tax collection (currently <0.2% of GDP) via GIS mapping & tech-based compliance. 

  • Infrastructure Investment & Smart Urban Design: 

  • Leverage Rs. 1 lakh crore Urban Challenge Fund (Budget 2025–26) to incentivize performance-based urban renewal. 

  • Promote vertical housing by easing Floor Space Index (FSI) norms, reducing slums and illegal colonies. 

  • Prioritise walkable cities, heritage zones and mixed-use planning (e.g., Jaipur Smart City for heritage revitalization). 

  • Environmental & Climate Resilience: 

  • Strictly enforce construction norms to curb dust; electrify public transport fleets (e.g., Delhi’s EV policy). 

  • Adopt Indore’s waste model: door-to-door collection, bio-CNG conversion, and community involvement. 

  • Expand rainwater harvesting and reuse of treated water, following Indore's ‘Water-Plus’ certification model. 

  • Digital & Mobility Infrastructure: 

  • Cut spectrum pricing to boost 4G/5G investments; deploy fibre optic networks across urban clusters. 

  • Use AI and IoT for smart traffic management, congestion pricing, and real-time mobility insights. 

  • Expand metro, BRTS, and multi-modal transport in tier-2 and 3 cities. 

  • Affordable Housing & Inclusive Growth: 

  • Address housing shortage (10 million currently, expected to triple by 2030 - CII/Knight Frank). 

  • Encourage public-private partnerships (PPPs) and use density bonuses for affordable housing expansion. 

 Conclusion:  

  • As highlighted in the World Bank’s ‘Navigating the Storm’ report (2023), resilient urban development is critical for India’s long-term macroeconomic stability. Cities must transition from fragmented growth to planned, smart, and sustainable ecosystems that empower people, foster innovation, and deliver high-quality living standards.