Other measures to address issues arising out of urbanization

Market-based funding will optimise infrastructure investments while simultaneously empowering local administration.

  • Infrastructure constraints do limit the benefits of agglomeration that bigger cities provide.
  • However, this can be avoided if there are mid-sized urban agglomerations to take the pressure off megacities.
  • More efficient public-transportation networks and work-from-home policies are instances which can further improve the productivity of bigger cities by reducing commuting time and air-pollution levels.
  • As India transitions to accommodate almost half of its populace in urban clusters, its cities need a big developmental push.

Municipal Bonds

  • Development requires financing. Given the current situation, municipal bonds can be an option.
  • In India only INR3,300 crore has been raised so far using this instrument.
  • In developed countries, such instruments are popular financing tools