Topic: Devolution of powers and finances up to local levels and challenges therein.
Q3. The 74th Amendment sought to institutionalise urban decentralisation. Critically analyse why this objective remains only partially fulfilled. Examine recent trends in state-level interventions. Suggest pathways for effective urban federalism. (15 M)
Difficulty Level: Medium
Reference: NIE
Why the question
Recent trends such as the creation of Greater Bengaluru Authority (2025), continued use of SPVs, and weak implementation of Article 243ZE make the question highly relevant to India’s evolving urban governance.Key Demand of the question
Critically analyse why the goals of the 74th Amendment remain partially met, examine emerging patterns of state-level interventions, and suggest institutional reforms to strengthen urban federalism.Structure of the Answer:
Introduction
Highlight the constitutional vision of decentralised urban governance and the growing mismatch with on-ground practices.Body
- Reasons why urban decentralisation remains incomplete (weak fiscal powers, functional gaps, lack of empowered mayors, state dominance).
- Recent trends in state interventions (GBA, SPVs, project-based funding, politicisation).
- Pathways for strengthening urban federalism (fiscal reforms, empowered leadership, full implementation of 12th Schedule, urban services cadre).
Conclusion
Emphasise the need for democratic, empowered, and future-ready urban governance to meet India’s urbanisation challenge.
