India’s path to 2047 runs through its cities: Rajiv Gauba
Empowered mayors and rationalised taxes: The Niti Aayog member’s four-part blueprint to unlock the economic power of Indian cities
By Samreen Wani
Last Updated: Mar 19, 2026, 17:48 IST2 min
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Speaking at the Urban Conclave 2026, Niti Aayog member Rajiv Gauba said that India’s goal of becoming a developed nation by 2047 hinges entirely on a reset of its urban governance.
Addressing the conclave organised by Janaagraha, a non-profit focussed on urban planning reform, Gauba acknowledged India’s historically slow pace of urbanisation. With only 35 percent of its population currently urban, India stands in stark contrast to developed nations like the US and Japan, where the figure sits between 80 and 90 percent. But that gap is closing fast with a demographic shift now underway.
The Economic Engine
“Cities are where human talent and capital converge,” Gauba stated, emphasising that the shift of the workforce from farming to manufacturing and services will necessitate a move to urban centres. He noted that as the urban population is projected to swell to 85 crore (850 million) by 2050, from 50 crore now, about half of the country’s population would be residing in urban areas, making urban transformation a “pressing need” rather than a choice.
To ensure that the government’s policies for urban transformation bear fruit and to unlock the economic potential of India’s cities, Gauba outlined a four-part strategic reset: A shift toward regional planning that transcends administrative boundaries; economic planning to leverage the strengths and interdependence of cities; economic rather than land-use-based planning that focuses on liveability, and a push for fully empowered civic governments—pointing to the stark contrast between India’s financially limited mayors and global counterparts in London or New York who control water, transport and policing.
He called for a fully empowered city government with stronger urban finances through rationalised property taxes and cost-reflective user charges, building on the 16th Finance Commission’s decision to raise the urban grants share to 45 percent. He highlighted a massive disparity in urban financing, noting that the use of municipal bonds is virtually non-existent in India. Currently, these bonds account for a mere 0.02 percent of GDP, a stark contrast to the 15 percent seen in the US.
Unlocking assets and housing
The Niti Aayog member also highlighted that many Indian cities still lack master plans and have restrictive floor space index which inflate housing costs. He said that while India needs to “embrace vertical housing near transit hubs” and update its cities’ master plans, it also needs affordable housing for migrant workers and young professionals moving into urban centres.
First Published: Mar 19, 2026, 18:17
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