NITI Aayog member Rajiv Gauba has called for India urban reforms that would give cities directly elected mayors, greater control over local services and more reliable funding. His proposals also include changes to planning and housing rules as the country’s urban population grows.
Key Takeaways
- Gauba proposed directly elected mayors with five-year terms and greater authority for urban local bodies.
- He called for better property tax and user-charge collection, alongside adequate transfers from states.
- He said India’s urban population is projected to rise from about 50 crore to 85 crore by 2050.
India urban reforms would give cities more authority
Speaking at the closing session of the second National Urban Conclave on October 25, 2026, Gauba called for a mayor-in-council system and timely municipal elections. He said cities could not be effectively governed from state capitals and needed the authority and institutional capacity to respond to local needs.
He urged states to devolve all 18 functions to urban local bodies in line with the 74th Amendment, including master planning, water supply, fire services and traffic. He proposed that states introduce new Municipal Acts, with support from the central government.
| Item | Details |
|---|---|
| City leadership | Directly elected mayors with five-year terms and a mayor-in-council system |
| Local services | Devolution of all 18 functions to urban local bodies |
| Municipal revenue | Improved property tax and user-charge recovery, plus adequate state transfers |
| Planning and housing | Less restrictive building norms, mixed-use zoning and adoption of the Model Tenancy Act |
Municipal funding and planning rules
Gauba said municipal revenues remained low and called for better recovery of property taxes and user charges. Although central finance commission grants to urban local bodies had more than doubled from the previous allocation, he said transfers from states to cities remained low. He called for State Finance Commissions to be constituted regularly and for adequate fiscal transfers.
He also urged states to remove restrictive floor-area ratios and building norms, adopt mixed-use zoning, encourage development around transit hubs and use land pooling. He said these steps could increase land supply and reduce costs for housing and economic activity.
To expand rental housing, Gauba urged states to adopt the Model Tenancy Act, highlighting the needs of migrant workers, industrial labourers, students and young professionals. These are proposals, not announced changes to law.
Population growth adds to infrastructure needs
Gauba said India’s population would continue to grow for several decades and stabilize at approximately 165 crore, or 1.65 billion, around 2060. He projected that nearly half the population would live in urban areas by 2050, with the urban population rising from about 50 crore, or 500 million, at present to 85 crore, or 850 million.
He said meeting the resulting demand for infrastructure, housing and basic services would require a fundamental change in how cities are planned, governed and financed.
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