Niti Aayog will support the preparation of integrated development plans for 20 city regions, as India sharpens its focus on urban-led growth, its member Rajiv Gauba said on Wednesday.
Over the past decade, the Centre has significantly expanded its urban push through flagship programmes such as the Smart Cities Mission, AMRUT, Pradhan Mantri Awas Yojana-Urban, and Swachh Bharat Mission-Urban.
Budgetary allocations for the urban sector have risen nearly tenfold, enabling the construction of around 10 million houses, with another 10 million already sanctioned, Gauba said at the Urban Conclave 2026 of Janaagraha.
Massive investments — estimated at Rs 3.5 lakh crore — have also been directed towards metro rail, bus rapid transit systems, and regional rapid rail networks. These efforts come at a time when India is undergoing a major demographic transition, with cities expected to play a decisive role in achieving the country’s ambition of becoming a developed nation by 2047.
To unlock this potential, Niti Aayog launched the Growth Hub for City Regions initiative, encouraging states to adopt a regional and economically driven approach to urban planning.
“Surat, Mumbai, Varanasi, Visakhapatnam and Bhubaneswar have already prepared their plans under this initiative, and Niti would be supporting the development of such plans for 20 city regions,” Gauba said. This model can of course be replicated by other cities, by other states.
Complementing this is a Rs 1-lakh-crore Urban Challenge Fund aimed at incentivising reforms, alongside fresh budgetary support for city economic regions.
The success of these initiatives hinges on deeper governance reforms. Urban planning must move beyond administrative boundaries towards regional integration, focus on economic outcomes rather than just land use, and prioritise liveability and sustainability, Gauba said. Empowered city governments, stronger mayoral systems, timely elections, and enhanced municipal revenues — currently just about 1% of GDP — will be critical to transforming India’s urban landscape into engines of long-term growth, he added.
“While the 74th constitutional amendment already provides a strong foundation for empowered urban governance, what we need now is renewed political will, institutional strengthening, and active citizen participation to translate this vision into reality,” said Anita Kumar, director – policy and insights, Janaagraha.