The term 'NITI' in NITI Aayog stands for the ‘National Institute for Transforming India.’ Through its Growth Hub or G-Hub mission, NITI Aayog has developed comprehensive plans for cities like Mumbai, Surat, Visakhapatnam, and Varanasi. These plans adopt a fresh, innovative approach, inspiring hope for the future of India's rapidly urbanising landscape.
Urbanisation in India has grown rapidly over the past few decades. In 2001, 28.61 crore people lived in cities (27.82% of the total population), and by 2011, this number had risen to 37.71 crore (31.15%). By 2020, it was estimated to reach 48.3 crore (34.9%).
During this period, the count of urban households living in slums increased from 1.01 crore to 1.37 crore. However, urban households living in slums decreased from 23.5% in 2001 to 17% in 2011. Urban poverty also dropped significantly, from 25.7% in 2004-05 to 13.7% in 2011-12. Cities played a vital role in the economy, contributing 60% of India's GDP in 2011.
The demand for urban infrastructure and urban services is continuously increasing, and it is being compounded by other related trends―a large share of the young population, the increasing population numbers of urban poor, and their low-income levels. As per the high-powered expert committee report of 2011, the urban infrastructure investment deficit is estimated at Rs 39.2 lakh crore at 2009–2010 prices for the period 2012–2031. While the government of India is working towards addressing this investment requirement, it is also designing schemes to make Indian cities more liveable. The five flagship centrally sponsored schemes in the urban sector are working towards these objectives.
In a review of the schemes for urban transformation, it came to the fore that the Gross Domestic Product (GDP) of several major city regions worldwide appears to match the GDP of entire countries. This reflects urban centres' growing economic prominence and vitality, highlighting their pivotal role in shaping the country's economic development and that the Indian cities hold the potential to propel unparalleled economic growth, which needs to be realised. This led to the initiative focused on developing city regions as Growth Hubs, which plan for leveraging urbanisation for economic growth in line with NITI Aayog's mandate of fostering cooperative federalism.
The study revealed that although Indian cities occupy just 3% of the country's land, they contribute a significant 65% of the GDP. Projections suggest that this urban area is expected to expand to 50% by 2047, up from the current 36%.
A prime example of this economic concentration is the Mumbai Metropolitan Region (MMR), which plays a vital role in India's economy. MMR accounts for:
• 4% of the national GDP
• 24% of the country’s income tax collection
• 36% of corporate tax collection
• 25% of India’s industrial output
• 40% of foreign trade
• 70% of maritime trade
In Maharashtra, MMR holds 20% of the population but only 2.8% of the land area. It contributes 31.2% of the state's GDP and 18.1% of its jobs. The region's per capita income is 1.5 times higher than Maharashtra’s and nearly double that of India's national average.
The G-Hub mission aims to take a proactive approach by focusing on economic strategy before land use planning. It will identify job growth drivers, define city resources, support global trends, and assess resource needs. The mission will also boost the business environment, propose new ideas and interventions, and prioritise major projects. Apart from building and boosting economic activity, it also focuses on improving quality of life and inclusivity while promoting sustainability.
NITI Aayog has identified seven key growth drivers, covering 30 projects, eight sector policies, and nine institutional changes to establish the Mumbai Metropolitan Region (MMR) as a financial hub. The goal is to attract Rs 10-11 lakh crore in private investment and speed up ongoing projects worth $65 billion. The vision includes transforming Mumbai into a global fintech capital, contributing Rs 1 trillion to India’s GDP. It also meticulously addresses various factors affecting citizens’ lives. This includes developing 3 million affordable housing units by 2030, developing MMR as a global service hub built on seven champion services, creating 3 million affordable homes by 2030, making MMR a global hub for tourism and urban recreation hub and port-proximate manufacturing and logistics hub having world-class urban infrastructure and transport, and becoming an inclusivity and sustainability leader of India with planned urbanisation.
The G-Hub mission by NITI Aayog represents a forward-looking approach to leveraging India's rapid urbanisation for economic growth by transforming urban spaces into thriving economic hubs while promoting sustainability and inclusivity. With ambitious projects, targeted investments, and a clear vision for the future. These growth drivers are expected to shape MMR as a $300 billion economy and play a key role in India's journey towards becoming a $5 trillion economy.
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