Arvind Panagariya: Urbanisation essential for India’s 2047 development goals

Arvind Panagariya, Chairman of the 16th Finance Commission, stated that urbanisation is a critical driver for India’s goal of becoming a developed, $30-trillion economy by 2047. Speaking at the Lok Bhavan Conversations, Panagariya emphasized that achieving global competitiveness requires productive, resilient, and efficiently governed cities.

He noted that economic activity must drive urbanisation by making cities business and job-friendly to attract rural populations. Panagariya identified the scarcity and high cost of urban land as major constraints, noting that fragmented land holdings and the lack of definitive land titles make acquiring large parcels for industrial use extremely difficult. He called for reforms to reduce bottlenecks in land acquisition and urban development to facilitate productive economic activity.