New Delhi: Unplanned sprawl has expanded India’s urban footprint by 2.5 million hectares -- an area equivalent to over 100 Hyderabads -- between 2005-06 and 2022-23, according to a Janaagraha report released Wednesday. The report further projects that 723 million people will live in urban India by 2050, a figure exceeding the combined population of all ASEAN countries. Unplanned growth worsening city life: Janaagraha report
Releasing the Janaagraha’s “Shaping Urban India: By Design, Not by Default” report on Wednesday, CEO Srikanth Viswanathan said that while India’s largest cities have become economic powerhouses, comparable to middle-income nations in both population and output, the “lived experience” for citizens is sharply declining.
“The lived experience of mobility is worsening for citizens every day. At the same time, smaller cities offer cleaner air, more open spaces and a better quality of life, but often fail to provide adequate opportunities for youth to realise their full potential. This dichotomy between growth and liveability is increasingly evident, even though the promise of cities is to deliver both simultaneously,” he said.
The report further argued that the future of the Indian economy is inseparable from urban governance. By 2030, an estimated 70% of new jobs are projected to be created in urban areas, it said, but warned that the economic potential of these roles was being stifled by a systemic governance failure.
This failure, the report said, is rooted in a systemic governance disconnect as a typical Indian city is overseen by 29 different agencies tasked with handling 11 core urban functions.
It added that, consistent with global experience, cities function as the primary engines of national prosperity in India by generating 60% of the national GDP, with 10 cities contributing “a disproportionate 28% GDP while housing just 9% of the population”. “...even when an Indian city doubles in size (i.e., 100% increase in urbanisation), its economic productivity only increases by 12% (on average). This is significantly less not only compared to the data model cited above but also less than the 17% increase in some African countries and the 19% increase in China,” it said.
The report stated that the existing system in India views the city as an aggregate of disparate, uncoordinated infrastructure and services handled by multiple actors “with no single person or institution accountable to citizens”.
This results in a pattern of poorly managed urban density and unplanned sprawl, which imposes a financial toll on residents. “A 10% increase in badly managed urban density costs between $26 and $35 per person annually due to greater congestion, poorer health outcomes, and lower well-being.”
It further highlights a dramatic misalignment in resource allocation. Although the vast majority of urban Indians rely on walking or public transit, a mere 3% to 5% of municipal budgets in the country’s largest metropolitan cities such as Mumbai and Bengaluru, are dedicated to pedestrian infrastructure, forcing a massive reliance on private vehicles, the report said. In Bengaluru, an average commuter loses 168 hours annually -- the equivalent of one full week -- to traffic congestion.
The report has revealed that India is now home to 35 of the world’s 50 most polluted cities. In Delhi, long-term exposure to PM2.5 is estimated to reduce the average resident’s life expectancy by 8.2 years.
The housing market, too, has taken a hit. Since 2019, the supply of affordable housing has plummeted from 40% to 16%, while luxury housing has doubled to 56% of the market. This crisis has forced migrants to the urban fringes, further lengthening their commutes and fuelling the cycle of congestion and pollution.
The report further warned that the current funding ( ₹8.36 lakh crore since 2015) has often treated symptoms rather than causes because cities are “governing blind” without granular data.
To fix this, the report proposed five “Big Shifts”: a National Mission for Urban Roads to focus on high-quality, walkable streets; City Action Plans for small and medium cities to promote “place-based” governance; moving away from “one-size-fits-all” planning toward models tailored for different cities; the building of city-level data systems to track air quality, traffic, and housing in real-time; and conclusively recognising urban local governments as true “city governments” by devolving power and giving mayors fixed five-year terms.
“The big shifts we are proposing are not about waiting for sweeping legislative change -- they can be initiated within the current institutional framework if there is administrative will and clarity of purpose,” said Anita Kumar, co-author of this report and director of policy and insights at Janaagraha.
GRAPHIC BOX
The perils of urbanisation
Rapid unplanned growth: Between 2005-06 and 2022-23, urban areas expanded by 25 million hectares through unplanned sprawl
Economic concentration: Only 10 of India’s cities contribute a massive 28% to the national GDP, despite housing only 9% of the population
Population surge: By 2050, India’s urban population is expected to hit 723 million—a figure roughly equal to the current combined population of all ASEAN countries.
Health impacts: In Delhi, long-term exposure to PM2.5 air pollution is estimated to reduce the average life expectancy of residents by 8.2 years.
Traffic and productivity loss: Commuters in Bengaluru lose approximately 168 hours annually to traffic congestion—the equivalent of one full week of time lost every year.