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Home Learning & Development

Urbanization in India through Five-Year Plans – Track2Training

August 21, 2025
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Urbanization in India through Five-Year Plans – Track2Training
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Urbanization has been a gradually evolving focus in India’s Five-Year Plans. While early plans emphasized rural development, later ones began recognizing cities as engines of growth.

Photo by Sofiia Asmi on Pexels.com

1. First to Third Five-Year Plans (1951–66)

Focus: Agriculture, community development, rural growth.

Urbanization received minimal attention, mainly in the form of housing schemes (e.g., Housing Boards).

Third Plan (1961–66): First recognition of urban problems like housing shortages, slums, and basic amenities.

2. Fourth and Fifth Plans (1969–79)

Acknowledged rapid urban growth and need for urban infrastructure investment.

Beginning of metropolitan planning (focus on Bombay, Delhi, Calcutta, Madras).

Housing, transport, and slum improvement were addressed in fragmented manner.

3. Sixth Plan (1980–85)

Urbanization seen as unavoidable in the development process.

Proposed integrated urban development, strengthening small and medium towns.

Introduction of Integrated Development of Small and Medium Towns (IDSMT) Scheme (1980).

4. Seventh Plan (1985–90)

National Commission on Urbanisation (NCU), 1986 was a milestone.

NCU stressed:

Strengthening urban–rural linkages.

Promoting growth centers.

Avoiding over-concentration in metros.

Recommendations influenced later programmes.

5. Eighth and Ninth Plans (1992–2002)

Post-liberalization era → urbanization seen as key for economic growth.

Urban Land Ceiling Act (ULCRA) repealed (1999) to improve land supply.

Emphasis on private sector participation in housing and infrastructure.

6. Tenth Plan (2002–07)

Explicit focus on urban governance and service delivery.

Stressed 74th Constitutional Amendment implementation.

Recommended reforms in municipal finance, user charges, and capacity-building.

7. Eleventh Plan (2007–12)

Marked a paradigm shift → saw urbanization as a positive force.

Introduced Jawaharlal Nehru National Urban Renewal Mission (JNNURM, 2005).

Largest urban reform programme (infrastructure, housing, e-governance).

Stressed reforms-based funding (property tax, rent control, ULB empowerment).

Focus on inclusive cities and urban poor (BSUP – Basic Services to the Urban Poor).

8. Twelfth Plan (2012–17)

Recognized that urban areas contribute >60% of GDP.

Called for “faster, more inclusive and sustainable growth” in urbanization.

Proposed urban transport, housing, water, sanitation, governance reforms.

Suggested new urban policy framework but it did not fully materialize.

Even though India does not yet have a formal, comprehensive National Urban Policy, multiple initiatives post-2014 act as de facto frameworks:

1. Smart Cities Mission (2015–present)

Develop 100 smart cities with ICT-enabled governance, efficient mobility, sustainable environment, and quality of life.

Focus on area-based development + pan-city solutions.

2. AMRUT (Atal Mission for Rejuvenation and Urban Transformation, 2015)

Focus on basic services (water supply, sewerage, drainage, green spaces).

Covers 500 cities → more inclusive than Smart Cities Mission.

3. PMAY–Urban (Pradhan Mantri Awas Yojana, 2015)

Housing for All by 2022 (now extended).

Addresses housing shortages for the urban poor, EWS, LIG, and MIG groups.

4. HRIDAY (Heritage City Development and Augmentation Yojana, 2015)

Focused on heritage conservation + urban infrastructure in historic cities.

5. National Urban Transport Policy (2006, revised efforts ongoing)

Prioritizes public transport and non-motorized transport.

6. Draft National Urban Policy Framework (NUPF, 2018)

Released by MoHUA & NITI Aayog.

Suggested a “10-pillar framework” for cities:

Integrated spatial planning, mobility, housing, environment, inclusivity, local governance, municipal finance, technology.

Aims to provide strategic direction for future policies.

PeriodUrbanization Policy Highlights1950s–70sRural bias, limited urban focus, start of metropolitan planning1980sRecognition of urban challenges, IDSMT scheme, NCU report (1986)1990sLiberalization, urban reforms, private participation2000sJNNURM, governance reforms, slum improvement2010sInclusive, sustainable urbanization; Smart Cities, AMRUT, PMAYLatestNUPF 2018 (draft), multi-mission approach instead of single national policy

✅ In essence:Urbanization policy in India evolved from a rural-centered planning era to recognizing cities as growth engines. The latest attempts (Smart Cities, AMRUT, PMAY, NUPF) show a multi-pronged, mission-driven approach rather than a single national policy document.



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