Urbanization Beyond Municipal Boundaries—Nurturing Metropolitan Economies and Connecting Peri-urban Areas in India

Urbanization beyond Municipal Boundaries informs policy priorities to manage India’s urbanization. Incisiveanalysis of the patterns of India’s urbanization using geo-referenced data from various rounds of thepopulation and economic census highlights rapid suburbanization of people and fi rms around the country’slargest metropolitan areas. However, the move to the suburbs is accelerated by land and housing shortagesin metropolitan cores, coupled with high transport costs between the metropolitan core and its periphery,and much worse infrastructure access and quality for water, electricity, and sanitation in the urban periphery.What are priorities for policy reform?First, investing in India’s institutional and informational foundations that can enable land and housingmarkets to function effi ciently while deregulating land use in urban areas. To achieve this, planning for landuse and planning for infrastructure must be coordinated so that densifi cation of metropolitan areas can beaccompanied by infrastructure improvements.Second, expanding and delivering better infrastructure services to improve livability. Policy makers need toinstitute reforms that would help providers recover costs yet reach out to poorer neighborhoods andperipheral areas.Last, strengthening physical connectivity between metropolitan hubs and their peripheries to improve thoseareas that attract the majority of people and businesses over the medium term. Investments in networkinfrastructure alongside logistics improvements can facilitate the smoother movement of goods.Land policy, infrastructure services, and connectivity—coordinated improvements in this triad can help Indiareap dividends from improved spatial equity and greater economic effi ciency that come with urbanization.