Urbanization beyond Municipal Boundaries : Nurturing Metropolitan Economies and Connecting Peri-Urban Areas in India

The report is organized into three chapters: chapter two looks at the pace and patterns of India's urbanization, providing a 100-year perspective on demographic shifts and a 20-year perspective on the spatial distribution of jobs across India's portfolio of settlements. The review is based on a careful, spatially detailed analysis of data from economic and demographic censuses, annual surveys of industry, national sample surveys, and special surveys of freight transport. This chapter provides diagnostics on whether Indian industry is adequately exploiting agglomeration economies and whether there are hints of specific barriers to the natural tendency of standardized industry to reshuffle from large metropolitan areas to smaller urban areas. Chapter three examines specific policy issues and investment bottlenecks that are curbing the pace and benefits of urbanization in India. The policy issues relate to land markets and housing, connectivity (within and between cities), and access to basic services. The purpose of this analysis is to unravel the specific distortions that may be preventing India from reaping the entire range of benefits of urbanization. Chapter four provides some options for policy reform, distilling lessons from relevant international experience. It provides options for establishing the 'rules of the game' that can define the workings of land and property markets as well as coordination of land use and infrastructure in cities. This chapter also provides a framework for policy makers to identify the role of regulatory and price reform in expanding infrastructure services and to make investments that enhance capacity.