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.
- 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