Issue 17
June 01-15, 2025

THEME OF THE FORTNIGHT

URBANISATION AND ECONOMIC GROWTH

REPORTS

Reforms in Urban Planning Capacity in India 2021: NITI Aayog

Author(s): Dr. Rajiv Kumar, Sh. Amitabh Kant, Sh. Durga Shanker Mishra, Sh. Amit Khare, Sh. Sunil Kumar, Dr K. Rajeswara Rao, Dr D.P. Singh, Prof. Anil D. Sahasrabudhe, Ms D. Thara, Dr Bimal Patel, Prof. Dr. P.S.N. Rao, Prof. Dr. D.S. Meshram, Sh. Hitesh Vaidya, Sh. Rakesh Desai

Publication Details: NITI Aayog, 2021

In response to India’s rapid urbanisation and global development commitments, NITI Aayog established an Advisory Committee in 2020 to explore reforms in urban planning education and capacity. This report distils key insights from expert consultations on curriculum gaps, institutional weaknesses, and underutilised private sector potential. It identifies challenges such as outdated regulations, limited citizen engagement, and a shortage of skilled professionals. To address these, the report recommends programmatic interventions for healthy cities and land use, strengthening human resources, revising planning laws, and enhancing capacity-building efforts. These reforms aim to equip India’s urban planning ecosystem to meet future demands with sustainable, inclusive strategies.

Read More: https://www.niti.gov.in/sites/default/files/2021-09/UrbanPlanningCapacity-in-India-16092021.pdf

Spatial and Non-Spatial Factors Affecting Land Use, Reforms in Urban Planning Capacity in India, 2021


State of the Cities India 2021: Institute of Social Sciences

Author(s): Om Prakash Mathur, Abbas Haider Naqvi, Akanksha Laroiya, Varikoti Sai Samyukta, Himani Verma

Publication Details: Institute of Social Sciences, 2021

This report critically examines the trajectory of urbanisation in India, challenging the widely accepted notion of rapid urban growth. It highlights the need for evidence-based assessments over narrative-driven assumptions. Focusing on demographic trends, economic foundations, infrastructure, environmental change, and the definition of what constitutes “urban,” the study explores how urbanisation in India intersects with growth, inclusion, and environmental sustainability. By analysing the form and structure of urban transition, the report aims to provide a clearer, data-driven understanding of India’s evolving urban landscape and the complex challenges and opportunities it presents.

Read More: https://wri-india.org/sites/default/files/State-the-Cities-Report.pdf

Transitioning to an urban world, State of the Cities India, 2021


Harnessing the Economic Potential of India’s Cities 2024

Author(s): Anshika Gupta, Rana Hasan, Lei Song et al. 

Publication Details: Asian Development Bank, 2024

This report outlines a framework to help Indian cities boost economic growth and job creation. It examines the main obstacles holding cities back, such as poor coordination between economic and spatial planning, limited land availability, and weak institutional systems. Using city profiles and stakeholder consultations, the study identifies practical solutions: developing clear economic visions, improving land supply, aligning master plans with growth goals, strengthening local institutions, and streamlining policies to support business activity. The emphasis is on realistic, actionable steps cities can take to become more effective drivers of development.

Read More: https://www.adb.org/sites/default/files/publication/977981/harnessing-economic-potential-india-cities.pdf

Generic landscape of urban institutions’ and actors’ responsibilities in Indian cities, Harnessing the Economic Potential of India’s Cities, 2024


RESEARCH PAPERS

The Impact of Urbanization on Economic Growth in Gauteng Province, South Africa

Author(s): Sarah Jacobs, Oladipo Olalekan David, Abigail Stiglingh-Van Wyk

Publication Details: International Journal of Economics and Financial Issues, 2023

This paper analyses the historical and contemporary relationship between urbanisation and economic growth in Gauteng Province, South Africa’s most economically significant and densely populated region. The researchers have examined the cause-and-effect relationship to understand how people have migrated and how the economy has changed in South Africa since the end of apartheid, using quarterly data from 1997 to 2020. The authors have explored whether population growth directly contributes to economic expansion, ultimately finding that economic growth drives employment, which in turn fuels inward migration and urbanisation, while the opposite does not hold statistically. These findings highlight the need for urban policy that not only forecasts migration trends but also strengthens infrastructure, housing, and employment capacity in order to sustain inclusive development amid Gauteng's rapid urban growth.

Read More: https://econjournals.net.tr/index.php/ijefi/article/view/13899


Urbanization Trend of South, East, and Southeast Asian Countries: Influence of Economic Growth and Changing Trends in Employment Sectors

Author(s): Subrata Das, Rina Paul

Publication Details: Current Urban Studies, 2021

Urbanisation patterns in Asia are evolving not just with economic growth but with changing employment dynamics. The paper analyses how shifts in employment structures, rather than GDP growth alone, have shaped urbanisation across Asia’s most dynamic regions over the past three decades. The researchers investigate the urbanisation trends of South, East, and Southeast Asian countries using panel data regression and ordinary least squares (OLS) models, highlighting the diminishing role of agriculture and the rise of service and industry-based employment being the key contributors to urban growth. The authors have explored the details in these transitions, showing that while economic growth and urbanisation often align in broad trends, what statistically explains the surge in urban populations is the reallocation of labour from agriculture to higher-value sectors. Their findings suggest that future urban planning and development strategies must integrate labour market reforms and sectoral shifts to manage urban expansion sustainably.

Read More:https://www.scirp.org/journal/paperinformation?paperid=113623


Urbanisation and SME Growth in a Developing Economy: Implications for Policy

Author(s): Mapeto Bomani, Evelyn Derera, Mugove Mashingaidze

Publication Details: Corporate Governance and Organizational Behavior Review, 2022

The paper explores the intersection of rapid urbanisation and the growth of small and medium enterprises (SMEs) in Zimbabwe, a country where informal businesses now play a central role in the urban economy. The researchers investigate the challenges faced by urban SMEs, which include limited access to finance, regulatory burdens, and skill deficits, through qualitative interviews with twenty-five enterprise owners across multiple urban centres. The authors have explored how existing government support mechanisms have fallen short of addressing the systemic barriers that obstruct the development of SMEs, despite the sector’s critical role in job creation and GDP contribution. The findings suggest that the study implies a comprehensive policy change that includes SME clustering, increased funding for incubation centres, and urban planning frameworks that account for both economic resilience and climate adaptation.

Read More: https://virtusinterpress.org/IMG/pdf/cgobrv6i2p12.pdf


Urbanisation and the Onset of Modern Economic Growth

Author(s): Liam Brunt, Cecilia Garcia-Penalosa

Publication Details: The Economic Journal, 2022

Rather than viewing urbanisation as a consequence of economic growth, this paper argues that it may have been a key driver of the modern growth era. The paper analyses how the growing city population in Western Europe, particularly in England, could have impacted the technological and productivity advances that fueled industrialisation. The researchers claim this by using a dual-sector growth model focusing on endogenous growth theory and economic geography. The authors have explored how dense urban environments encourage innovation through increased idea-sharing by creating a feedback loop where urban growth fuels further economic development. Historical data support the model’s claim that urbanisation, combined with rising agricultural productivity and institutional shifts, was a catalyst for sustained, long-term economic transformation.

Read More: https://academic.oup.com/ej/article-abstract/132/642/512/6311805