After the change within the State authorities, a number of components of Delhi have witnessed demolitions of slums. These demolitions might go on in Delhi and elsewhere however even when these come to a halt, we now have a really major problem however. Demolitions are painful however they’re additionally a visual reminder of an ongoing, in any other case silent, and deep-rooted drawback. Life in slums and even in lots of unauthorised constructions is, all mentioned and finished, troublesome, unhygienic, unsafe and even inhuman.
The way forward for a complete era that grows up there may be usually at stake, and there are various unfavourable “externalities” for the town at giant. It isn’t simply Delhi. Almost half the city inhabitants in India lives in slums! And, probably one other 10-25 per cent folks stay in, what are, in a technique or one other, unauthorised constructions.
Why? Property costs are, by and enormous, very excessive within the huge cities. So, a marketplace for unlawful or semi-legal actual property preparations evolves at numerous ranges. The value for such an association is comparatively low. This can be a parallel housing “system” alongside authorized housing. And, there may be corruption and harassment. However there may be additionally an understanding on the a part of public authorities, lots of whom are in a dilemma.
There are, broadly talking, two views on this complete matter. First, as a result of many actual property developments are unlawful and trigger unfavourable “externalities”, these must be demolished. Second, the customers are poor or not well-to-do, and so they need to be allowed to remain. There’s a dilemma. And, but this complete mind-set is definitely lacking the bigger image!
Successfully, the main target is often, if not nearly all the time, on the quick time period. It’s time that we began pondering significantly a couple of long-term significant answer. It’s true that such an answer can take 5-10 years and probably much more. However we have to make a starting at some stage, if we don’t need the issue to change into greater.
The guts of the issue is restricted provide of housing, and that is mainly for coverage causes. Now extending the prevailing huge cities may be very messy, and really expensive. So, we have to consider an answer outdoors of the prevailing huge cities. We want new cities, or extensions of present small cities. We might deal with these too as new cities.
Sensible cities
An essential mission of the Union authorities in 2014 was to construct 100 new cities which might even be sensible. Quickly sufficient, nevertheless, there was a shift to a mission underneath which 100 largely present cities would change into sensible. The concept of 100 new cities was, broadly talking, shelved. The primary purpose appears to be that public cash and state capability are restricted, and so this was an almost inconceivable mission. However there may be one other route; that is primarily by way of an enabling public coverage to construct some new cities.
Take into account economics. It’s true that growing new cities has a really excessive alternative price. It’s even debatable whether or not we must always have new cities. Be aware, nevertheless, that this method assumes that the assets are at current, kind of, absolutely utilised. However this isn’t true. We have now, in India, underutilisation and inefficient allocation of the assorted components of manufacturing — land, labour, capital and organisation.
For instance, the highest 10 cities occupy solely about 0.2 per cent of the land mass! That is opposite to the frequent notion that there’s a scarcity of land for urbanisation. We have now huge under-allocation for cities, which is the place the worth of (uncooked) land may be very excessive. That is tantamount to critical underutilisation. It’s true that the Land Acquisition Act, 2013 can are available in the best way of growing new cities.
Nevertheless, if we make a really huge change in coverage, then it isn’t nearly reasonably priced housing, and decongestion within the present cities. Additionally it is about larger financial development and higher employment. And, a giant change in coverage can itself pave the best way, or at the least make it more easy, to amend the Land Acquisition Act, 2013.
This isn’t the area to get into the detailed economics of why it’s truly more easy to make an enchancment within the utilisation and allocation of assets by growing new cities, as a substitute of a considerable enchancment in another sector of the financial system. However it should assist to elaborate slightly on using one of many components of manufacturing right here — labour in growing the brand new cities.
Jobs angle
A brand new metropolis can come up — with potential hiccups — over what’s now a rural space. The density of inhabitants in rural India is, understandably, low. This clearly implies that when there may be the event of a complete metropolis over some (now) rural space, there’s a want for hiring folks from outdoors. The place can these folks come from?
Within the present cities we now have not solely individuals who stay in dangerous circumstances in slums, and even unauthorised constructions, most of those folks even have odd jobs, under-employment, and low incomes. There’s scope then for a mutually helpful and voluntary “commerce”.
A few of these folks can shift to the brand new areas and get higher occupations, near full-time jobs, larger incomes, and cheaper, respectable and authorized housing. And, the brand new cities are helpful for absorbing different folks sooner or later as properly.Urbanisation in India is simply at 34 per cent. Anyway, it helps to have new cities. In conclusion, the best way out of the issue of slums, and unauthorised constructions lies primarily within the creation of latest cities, which is feasible. In the end many individuals must stay and work there.
The author is an impartial economist. He has taught at Ashoka College, ISI (Delhi) and JNU
Revealed on July 19, 2025