Budgetary allocation every year are indicative of governments intent, response, and resolve to shape, reshape or transform the economic landscape of the country and same holds true to development of various sectors which marque the economy. Since the present government is now in office for record third time, it has also explicitly aimed and shown its intent of “Vikisit Bharat” as such the Union Budget 2024-25, emphasizes the government's commitments to steer up the country towards sturdy development and pervasive prosperity. Like other sectors, one of the pivotal points of present budget deliberations and allocations have been innovative urban development, which has been tried to address through various creative initiatives designed at development of cities as growth hubs, orderly development of peri-urban areas, improving housing, rental facilities, city planning, transit planning, creative brown field development water supply, sanitation, and support for street vendors. Surprisingly, unlike the yearly budgets during NDA- I and NDA-II where focus was predominantly on Smart City Mission, this budget marks a deep-seated shift in trajectory of urban development in the country. From the budget presented, it is understandable that India's new urban development strategy focuses on brownfield redevelopment, transit-oriented development, and infrastructure improvements. Key initiatives include financial support for city projects, TOD plans for large cities, enhancements in water and sanitation, expanded housing under the PM Awas Yojana, development of street food hubs, and stamp duty reforms. These measures aim to transform urban areas and address growing city needs. The government's urban development strategy also emphasizes creative brownfield redevelopment, planned peri-urban growth, and transit-oriented development to improve residents' quality of life. Union Finance Minister Nirmala Sitharaman highlighted the government's focus on urban development in the Union Budget 2024-25, aiming to create opportunities and foster growth for a prosperous future and development cities as "growth hubs". The government has focused on urban development, with initiatives like the Urban Infrastructure Development Fund for tier 2 and tier 3 cities. However, some initiatives are still in progress, such as the high-level committee on urban planning and the proposed centers of excellence. The Ministry of Housing and Urban Affairs saw an increase in allocation for 2024-25. Does mean that the focus and stress on cities-Smart is over with increased focus on TOD, development of peri-urban areas, redevelopment existing and old areas. The budget has also indicated to formulate a framework for enabling policies, market based mechanism and regulations for their development which clearly indicate that radical urban reforms are to follow. Consequent reforms, may further be required by the states for effective implementation, as urban development is a state subject. The market based mechanism to urban development signifies that the urban development has to be supported and sustained through self-generating financial mechanism and urban sector has to evolve and transform into a fiscally be self- reliant sector.

Ideological Shift

The government plans to work with states to develop cities and peri-urban areas through economic and transit planning. The budget prioritizes urban development, with initiatives like incentivizing land-related reforms and promoting sustainable projects in 100 large cities. The government aims to promote water supply, sewage treatment, and solid waste management projects in partnership with states and Multilateral Development Banks. The budget also focuses on revitalizing existing cities through creative redevelopment and Transit Oriented Development plans for large cities. The government plans to streamline urban land and property records through digitization and GIS mapping. Land reforms in urban areas will incentivize completion within the next three years. Housing for urban areas is a key focus, with plans to address the housing needs of one crore poor and middle-class families. The government aims to invest Rs 10 lakh crore in housing projects, with central assistance and interest subsidies. Under the PMAY-Urban scheme, over one crore houses were sanctioned, with increased allocation for the upcoming years. Overall, the budget emphasizes planned urban development, incentivizing land reforms, and promoting sustainable projects in cities. The government aims to address urbanization challenges and strengthen urban infrastructure to tackle the growing demand for housing. The focus on efficient and transparent rental housing markets shows a commitment to comprehensive urban development in the coming years. After the successful implementation of the PM Street Vendors AtmaNirbhar Nidhi (PM-SVANidhi) scheme, which was announced in 2020 to help street vendors restart their businesses government now plans to set up weekly haats or street food hubs in selected cities. In next five years, the development of 100 weekly ‘haats’ or street food hubs in select cities is aimed to boost informal sector enterprises.

Allocations and Targets

The Union Budget 2024-25 focuses on urban development to provide housing, rental facilities, and services. The budget aims to promote economic growth and sustainable urbanization with investments and initiatives. Finance Minister announced PM Awas Yojana-Urban 2.0 with Rs 2.2 lakh crore central assistance to construct one crore houses. The cabinet approved three crore houses, including two crores in rural and one crore in urban areas. The Budget allocated Rs 30,170.61 crore for PMAY-U and included funds for CLSS and Credit Risk Guarantee Fund Trust. The details of the scheme, income criteria, and launch plans are still being finalized. The government plans to work with states to develop cities into growth hubs through transit planning and peri-urban area planning. A framework for brownfield redevelopment and transit-oriented development plans for large cities will be formulated. The aim is to enhance living standards and promote sustainable urban growth.
The Union Budget 2024-25 has announced the allocation for the construction of three crore additional houses under the PM Awas Yojana, covering both rural and urban areas. This includes PM Awas Yojana Urban 2.0, which aims to address the housing needs of one crore urban poor and middle-class families with an investment of ₹10 lakh crore. Central assistance of ₹2.2 lakh Crore will be provided over the next five years to support this initiative. Additionally, the scheme will offer interest subsidies to facilitate loans at affordable rates. The Union Budget 2024-25 has allocated funds for the construction of three crore additional houses under the PM Awas Yojana, including PM Awas Yojana Urban 2.0 targeting one crore urban poor and middle-class families with an investment of ₹10 lakh crore. Central assistance of ₹2.2 lakh Crore will be provided over five years, with interest subsidies to facilitate affordable loans. Since its inception in 2015 and 2016, PMAY has focused on providing pucca houses with essential amenities and promoting women's ownership. The budget also focuses on facilitating rental housing for industrial workers, developing cities as growth hubs, and promoting water supply and sanitation projects. Additionally, a new scheme will support the development of 100 weekly 'haats' each year, building on the success of the PM SVANidhi Scheme. The government will also encourage states to lower stamp duty rates, particularly for properties purchased by women, as part of urban development schemes.

Reinvigorated Intent

Overall the intent of the government through this budget is vividly clearly that it wants to add dynamism to urban development, develop cities as growth hubs, alleviate urban poverty, improve urban infrastructure, darn image of urban India and make it sustainable. The expected change in the development trajectory of urban India and the intent of government towards urban development seems to be significantly evolving .Initially focus was often on basic services and infrastructure provisions, followed by development of small and medium towns to smart city development .Since in recent years the urban development and planning has shifted towards creating more sustainable, livable and inclusive environments. Therefore, intrinsically the shift in the approach to urban development is driven by the needs and commitments to address challenges like climate change, massive urbanization and social inequality. The intended ideological changes will require necessary responses by the state/local and other machinery. They would require to align intent of urban development with these ideological shifts and implement it, to realize what has been conceived. Urban planning approach may not remain and retain characteristics of business–as-usual and would need to be orient to changing scenario and requirements.

Need for Prompt Response

The changed policy approach may surely require gestation period in performance indicators, adoption of tech driven changes and outlays which is a key concern likely to emerge and impact responsive delivery system of urban local bodies in many ways. Also in the process, despite having uniform building bye laws in place, receptive and assimilative conceptual incompatibilities at State/local level may arise which would necessitate to be flexibly attuned to streamline the new approach to urban development for fruitful results.

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