India Needs Outcome-Based Urban Policy Amid Rising ‘Hidden Urbanisation’: EAC-PM Paper

ENA Economy 2026-03-19 12:40:36 New Delhi, Mar 19 (KNN) A working paper by the Economic Advisory Council to the Prime Minister (EAC-PM) has highlighted that Indias level of urbanisation may be significantly higher than official estimates, pointing to a large extent of hidden urbanisation driven by rapid expansion of built-up areas beyond formally recognised cities. Titled Indias Hidden Urbanisation and its Policy Implications, the paper, authored by EAC-PM member Shamika Ravi and co-authors, argues that India should move beyond traditional inputâbased planning toward urban policies that are driven by measurable outcomes and citizenâcentric goals. The Centre, it notes, should play a catalytic role by providing strategic guidance, technical support, and financial incentives to support state and cityâlevel, even as urbanisation remains a state subject. Urbanisation Likely Underestimated The paper notes that conventional measures based on the 2011 Census may underestimate urban growth. While official data places Indias urban population at about 31 per cent, alternative estimates using satellite data suggest the share could be substantially higher. It attributes this gap to outdated definitions and delays in reclassifying fast-growing settlements, many of which continue to be governed as rural areas despite displaying urban characteristics. Satellite Data-Based Approach Proposed To address this mismatch, the report recommends adopting daytime satellite imagery and built-up volume data to identify and classify urban areas more accurately. This approach would enable real-time tracking of urban expansion and reduce reliance on decadal census data. The study proposes a framework based on three indicators—total built-up volume, growth of built-up area, and built-up volume per capita—to better capture the scale and pace of urbanisation. Governance and Planning Gaps Highlighted The paper points to gaps in governance, noting that many urbanising regions lack appropriate urban local bodies and planning systems. A significant number of towns continue to operate without master plans, contributing to unplanned growth and infrastructure stress. It also underlines the fragmented institutional structure and limited capacity of urban local bodies as key challenges affecting service delivery and infrastructure development. Call for Outcome-Based Urban Policy The report calls for a shift in urban policy from input-based spending to outcome-driven planning, focusing on citizen-centric areas such as housing, transport, public health, safety, and environmental quality. It recommends linking funding and performance evaluation to measurable outcomes and strengthening financial autonomy of cities through tools such as municipal bonds and improved revenue mechanisms. Need for Integrated and Forward-Looking Strategy The paper concludes that India must adopt a proactive and integrated approach to urbanisation, combining improved classification methods, stronger governance frameworks, and sustainable financing models. Without such reforms, the country risks continued unplanned urban growth and underutilisation of cities as engines of economic development. (KNN Bureau) 45509 https://knnindia.co.in/news/newsdetails/economy/india-needs-outcome-based-urban-policy-amid-rising-hidden-urbanisation-eac-pm-paper 2026-03-19 12:40:36 knnindia.co.in India Needs Outcome-Based Urban Policy Amid Rising ‘Hidden Urbanisation’: EAC-PM Paper