3 weeks ago
Urbanisation key to India's developed nation goal by 2047: Panagariya
India wants to become a rich, developed country by the year 2047.
A famous economist named Arvind Panagariya says this will only happen if far more people move into cities.
He said no country in the world has ever become rich without lots of people living in cities.
Right now, about 35 out of every 100 people in India live in cities.
The government in Delhi has already done most of the big changes it can make on its own.
So Panagariya says it is now up to India's state governments to make new rules.
He says cities need more land for homes and factories, but land is too expensive and hard to get.
He wants simpler rules so buildings can be taller, unused government land can be used, and more workers can find places to live.
If states fix these problems, Panagariya believes India can keep growing fast and become a developed country by 2047.
Economist Arvind Panagariya said India cannot become a developed economy by 2047 without significantly accelerating urbanization.
Panagariya called urbanization 'the most critical next step' in India's growth journey, saying no country has become rich without urbanizing.
India's urban population is estimated at around 35% today, up from 17% in 1951 and about 28% in 2001.
He identified the scarcity and high cost of urban land as the biggest obstacle, calling for higher FSI limits, mixed-use zoning, and simpler land-use conversion.
Panagariya said the next generation of reforms must be driven by state governments, since the Centre has completed or initiated most big-ticket reforms.
- Who
- Arvind Panagariya, economist, Columbia University professor and former chairman of the 16th Finance Commission
- What
- Argued that rapid urbanization and state-led reforms are essential for India to become a developed economy by 2047
- Where
- New Delhi, at the National Council of Applied Economic Research's (NCAER) India Policy Forum 2026
- When
- Friday, during the India Policy Forum 2026
- Why
- Because no country has become rich without urbanizing, and the Centre has already completed or initiated most big-ticket reforms under its domain
Key facts
- Speaker
- Arvind Panagariya
- Event
- NCAER India Policy Forum 2026
- Location
- New Delhi
- India's urbanization rate (today)
- Estimated at around 35%
- Urban population in 1951
- 17%
- Urban population in 2001
- About 28%
- National goal
- Developed economy by 2047
- Comparison cited
- South Korea rose from nearly 35% to 80% urbanization in three decades
Quotes
Arvind Panagariya
Economist and former 16th Finance Commission chairman
“"If we are really looking at 2047 as the target date for a developed India, urbanization has to happen. Countries may urbanize without becoming rich, but no country has become rich without becoming urban."”
livemint.com











