Source: The post Building new cities can solve India’s growing housing crisis has been created, based on the article “Slums – looking for a long-term solution” published in “Businessline” on 19th July 2025
UPSC Syllabus Topic: GS Paper 3- urbanisation, their problems and their remedies.
Context: Demolitions of slums in Delhi have triggered wider concerns about India’s deep-rooted urban housing crisis. With half the urban population living in slums and another significant share in unauthorised settlements, the need for long-term solutions has become urgent and unavoidable.
For detailed information on Urbanization in India- Significance & Challenges read this article here
Understanding the Urban Housing Crisis
- Widespread Informal Settlements: Nearly 50% of urban Indians live in slums, and another 10–25% in unauthorised structures. These places are often unsafe, unhygienic, and unsuitable for healthy living, endangering the future of entire generations.
- Root Causes of Illegal Housing: Legal property prices in cities are unaffordable for most. This leads to a thriving market of illegal or semi-legal housing, facilitated by corruption and informal understandings with public authorities.
- Conflicting Views on Slum Demolitions: One viewpoint advocates demolishing illegal developments due to their negative impact on the city. The other argues for protecting the poor who live there. Both perspectives focus on short-term issues and overlook the need for systemic solutions.
Need for Long-Term Structural Reform
- Policy-Induced Supply Constraints: The core issue is limited housing supply, caused by restrictive policies. Expanding existing big cities is messy and costly, making such efforts unsustainable in the long run.
- Urgency of Alternative Solutions: Rather than focusing solely on short-term fixes or on overburdened metros, India must begin planning long-term strategies, even if they take a decade or more. Starting now is crucial to prevent further worsening of the problem.
Reimagining Urban Expansion Through New Cities
- Smart Cities Missed the Mark: The original 2014 goal of creating 100 new smart cities was dropped in favor of upgrading existing ones. The shift occurred due to limits in public funding and administrative capacity.
- Feasibility Through Efficient Resource Use: Despite high opportunity costs, India suffers from underutilisation of land, labor, and capital. Top cities occupy only 0.2% of land, contradicting the idea of land scarcity for urban growth.
- Policy Shift and Land Acquisition: If bold policy changes are made, not only can urban congestion be eased, but growth and jobs can also be boosted. Such a shift may even enable amendments to the Land Acquisition Act, 2013.
Labour Mobility and Employment Opportunities
- New Cities as Job Hubs: New urban centres developed in rural areas will need outside labor. This creates an opportunity to relocate underemployed slum dwellers to better jobs in better environments.
- Mutual Gains for the Poor: People from existing cities’ slums can voluntarily move to new cities, gaining legal housing, improved income, and full-time employment. This transition can also absorb future urban migrants.
- Urbanisation as a Growth Engine: With India’s urbanisation still at 34%, developing new cities offers a path to both economic growth and humane urban living.
Conclusion:
The real solution to India’s slum and housing problem lies in building new cities. This approach addresses multiple challenges—housing, employment, and resource utilisation—simultaneously. The time to act is now, before the crisis deepens further.
Question for practice:
Discuss the long-term benefits and challenges of developing new cities as a solution to India’s urban housing crisis.
