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By 2036, India’s towns and cities will be home to 600 million people—each one counting on a good job, a decent home, clean water, and reliable sanitation and waste systems. Whether those cities deliver will shape the country’s Viksit Bharat aspiration of becoming a developed nation by 2047, the centenary of its independence.
India’s cities already contribute 63% of the country’s GDP, a share projected to increase to 75% by 2036. Yet rapid urbanization is also straining systems and contributing to congestion, sprawl, infrastructure gaps, and environmental stress.
The stakes are high. How cities grow will shape the lives of hundreds of millions and determine whether India’s urban transformation is a story of prosperity or missed opportunity.
Knowledge frameworks to guide urban growth
To meet this moment, the World Bank and Asian Development Bank, working with the Government of India, have launched three new knowledge frameworks that show how cities can grow smarter, redevelop better, and deliver essential services at scale—so urban growth translates into jobs, livability, and resilience for millions.
The three knowledge frameworks—Cities as Growth Hubs, Creative Redevelopment of Cities in India, and Water and Sanitation in Indian Cities—offer practical pathways to act.
Cities as Growth Hubs: India’s urban landscapes are as varied as its culture, ranging from sprawling metropolitan regions like Kolkata to picturesque small towns such as Ooty. This framework helps each city define its “urban growth trajectory,” plan orderly, serviced expansion, and prioritize investments that catalyze jobs and innovation. It advances integrated planning that links transport, housing, land use, and economic development; empowers local institutions to lead; and sets out ways to crowd in private investment. The framework also emphasizes the role of the private sector, governance reforms, and climate resilience—so growth is not only faster, but also sustainable and inclusive.
Launch of Knowledge Framework by the Union Minister for Housing and Urban Affairs, India.
Creative Redevelopment of Cities in India: This framework focuses on the urban core, identifying pathways to revitalize central areas, brownfields, and underused public assets to boost economic growth, reduce congestion, and optimize existing infrastructure. Building on Indian and international experience in brownfield redevelopment, it proposes a systematic approach: define vision, map public assets, identify redevelopment typologies, develop market-driven solutions, and implement one or a combination of: (i) upgrading built systems for optimized use, urban form, and building resilience, (ii) improving mobility and accessibility, (iii) enabling regulatory and fiscal incentives, (iv) streamlining institutional frameworks, and (v) structuring innovative financing solutions. The goal is to create vibrant, mixed-use neighborhoods that attract jobs, strengthen competitiveness, enhance tourism potential and civic pride, while learning from global practice to ensure inclusive growth and livability.
Water and Sanitation in Indian Cities: This framework provides an ambitious blueprint to modernize essential water, sanitation and solid waste services in Indian cities. It calls for a shift in focus from building infrastructure assets to delivering outcomes—reliable water supply, safe sanitation, and efficient solid waste management. It is grounded in a rigorous assessment of 100 large cities, deep-dive diagnostics in 10 cities, and lessons from India and global practice. Its central message is that transformation requires a commitment to improving service quality and building professional delivery institutions. In this context, bankable projects and entities can be promoted to further accelerate sector advancements, drive customer-centric approaches, and scale solutions for sustainability.
Connecting the dots: A holistic approach
These frameworks are designed to work together. Cities as Growth Hubs provides the strategic direction for where and how cities expand. Creative Redevelopment shows how to reinvigorate existing urban areas and make better use of underutilized assets and land. Water and Sanitation ensures the essential services that make cities livable and productive.
Combined, they form a framework for cities to leverage their core strengths, unique features, and accelerate their respective development trajectories to be competitive, resilient, and inclusive. Common threads run through all three: tailored, place-based solutions; strong, empowered, and professionalized institutions; innovative and blended finance; and sustained community engagement. Success depends on aligning incentives across sectors and levels of government, and on forging durable public–private partnerships.
Looking ahead: Learning, adapting, and scaling up
As part of its 2025–26 budget, India has announced a ₹1 lakh crore (approximately USD 11 billion) Urban Challenge Fund. This ambitious initiative aims to transform Indian cities into dynamic growth hubs, creatively redevelop urban spaces, and modernize water and sanitation systems, aligned with the three newly launched knowledge frameworks. The Fund will adopt a challenge-based approach, inviting states and cities to propose innovative, bankable projects that can accelerate urban transformation.
As India builds the cities of tomorrow, the choices made today will shape the future for generations. With the right knowledge, the right partnerships, and the right vision, India’s cities can become engines of opportunity and job creation—not just for their residents, but for the nation as a whole.
India’s urban transformation is a work in progress, and these frameworks are just the beginning. The lessons learned in one city can be adapted and scaled to others, creating a virtuous cycle of innovation and improvement. The World Bank and ADB, working with the Government of India, are committed to supporting cities as they chart their own paths to growth.
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