The 2026 Economic Survey has garnered attention for its groundbreaking approach to urban centers, with prominent business leader Anand Mahindra noting its significance. The survey treats cities as core economic systems, a move hailed as a necessary step towards aligning public policy, fiscal priorities, and planning frameworks with India's developmental trajectory. This perspective marks a shift in how the country views and addresses urbanization, acknowledging the pivotal role cities play in driving economic growth and shaping the lives of millions.
The Economic Survey highlights that India is more urbanized economically, functionally, and spatially than conventional definitions suggest. It recognizes that urbanization has concentrated productivity, innovation, and labor markets in cities. By 2036, India's urban areas are projected to house 600 million people, contributing nearly 70% to the country's GDP. Despite this, Indian cities often struggle with congestion, traffic, and inadequate civic amenities. The survey underscores that cities lack the institutional, fiscal, and planning foundations needed to unlock their full potential, both in terms of quality of life for residents and economic benefits for the nation.
To address these challenges, the Economic Survey suggests unlocking urban land by providing clear titles and increasing density norms such as Floor Space Index (FSI) and Floor Area Ratio (FAR). This would free up land for affordable housing, public transport, and essential amenities like sanitation and waste management. The survey also emphasizes prioritizing people over vehicles in traffic management and improving public transport to enhance productivity and liveability.
Furthermore, the Economic Survey calls for reforms in urban governance, including electoral, fiscal, and administrative responsibilities. These reforms are essential for empowering cities to effectively manage their resources and address the complex challenges of urbanization.
Anand Mahindra has consistently emphasized the importance of improving the quality of life in Indian cities. He has stressed the need for well-designed streets and pavements to enhance citizens' safety and mental well-being, urging municipalities to adopt holistic street designs. Mahindra has also highlighted the importance of cleanliness and hygiene in urban spaces, stating that these factors contribute to both physical safety and mental well-being.
Mahindra's views align with the Economic Survey's emphasis on creating livable and sustainable cities. Both recognize that urbanization presents both opportunities and challenges, and that proactive measures are needed to ensure that cities can fulfill their potential as engines of economic growth and centers of innovation and culture. Moreover, Mahindra has urged India to enhance the ease of doing business and tourism to boost growth, suggesting measures like single-window clearance for investments and improved tourism infrastructure.
