Question

Whys urban development is now an important issue in India? Which all sectors in urban development require more attention?

15 Feb 2018
Answer :
Word Count : 1389

India's journey of development has been both complex and transformative, particularly when examined through the lens of the pre and post-liberalization period. The era before liberalization, which spanned the time from India's independence in 1947 to 1991, was marked by a largely state-controlled economy with a focus on self-reliance and protectionist policies. The economic liberalization of 1991, however, ushered in a new phase of rapid growth, urbanization, and global integration. This shift has had profound implications on the nature and pace of urban development, making urbanization one of the most critical issues in India today.

### Pre-Liberalization Period (1947-1991)

During the period before liberalization, India adopted a mixed economy with a dominant role for the public sector. The government was the primary driver of development, and there was a strong emphasis on industrialization and self-reliance. The policy framework was characterized by a controlled and centralized approach, with an emphasis on import substitution, heavy industries, and a limited role for private enterprise.

The government invested heavily in infrastructure, such as the construction of dams, roads, and other large-scale projects, to support economic growth. However, the focus was largely on rural development and the promotion of agriculture. Urban areas, while growing, were not given the same level of attention, and urbanization was seen as a natural byproduct of economic development rather than a major focus in itself. The policy landscape did not prioritize urban infrastructure or housing, and the concept of urban planning was in its nascent stages. Cities like Mumbai, Delhi, and Kolkata, which were already centers of economic activity, began to experience rising populations, but without the corresponding investment in infrastructure.

In this era, the approach to urban development was more reactive than proactive. As a result, cities were characterized by sprawling informal settlements, inadequate public services, and poor housing conditions. The rate of urbanization was slow, and migration to urban areas was more often driven by necessity than by choice.

### Post-Liberalization Period (1991-Present)

The economic liberalization of 1991 marked a watershed moment for India. The liberalization policies, which included reducing trade barriers, opening up markets to foreign investment, and privatizing state-owned enterprises, led to significant changes in the economy. Economic growth accelerated, and India became one of the fastest-growing major economies in the world. This period also witnessed an increase in foreign direct investment (FDI), the rise of the services sector, especially information technology (IT) and business process outsourcing (BPO), and the expansion of the middle class.

The liberalization process also sparked a rapid rise in urbanization. Cities became the epicenters of economic activity, attracting people from rural areas in search of better employment opportunities, higher wages, and improved living standards. As a result, the pace of urbanization in India accelerated significantly in the post-liberalization period.

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