India’s Urban Crisis is Exploding

Topic: GS1 – Indian Society – Urbanisation

Context

Indian cities are facing a severe crisis of pollution, poor infrastructure, and climate vulnerability, making them increasingly unlivable and in urgent need of bold urban reforms.

Analysis of the news:

The Urban Crisis in India

• India’s cities are struggling with a multi-dimensional crisis, encompassing pollution, infrastructure failure, and inadequate public services.
• Delhi, among the world’s most polluted cities, experiences severe air quality deterioration every winter.
• However, this is not an isolated issue—many Indian cities suffer from overcrowding, poor urban planning, and weak municipal governance.
• With an anticipated urban population of over 600 million by 2036, cities must undergo major reforms to remain habitable and efficient.

Learning from Global Cities

• Indian cities have immense economic and cultural potential, yet they lag behind global hubs like Bangkok, London, Dubai, and Singapore.
• These cities thrive on efficient public transport, business-friendly policies, green infrastructure, and well-planned urban spaces.
• For instance, Bangkok’s metro and tourist-friendly atmosphere boost its economy, while Singapore’s smart city initiatives and clean governance ensure sustainability.
• To compete globally, Indian cities must prioritize urban reforms, infrastructure investment, and governance improvements.

The Need for Climate-Resilient Urban Planning

• Frequent extreme weather events highlight the vulnerability of Indian cities to climate change.
• Mumbai and Bengaluru have faced severe flooding, while Delhi and North India have suffered from record-breaking heatwaves.
• These climatic challenges demand robust mitigation strategies, such as green infrastructure, heat-resistant urban planning, and modern drainage systems.
• Early warning systems and disaster preparedness measures can also help prevent loss of life and property damage.

The Pollution Crisis: Air, Water, and Waste Mismanagement

• Pollution is a major crisis affecting health and economic growth.
• India accounts for 42 of the world’s 50 most polluted cities, with industrial emissions, vehicle exhaust, and construction dust leading to widespread respiratory diseases.
• The economic burden of air pollution alone is estimated at $95 billion annually.
• Water pollution is equally dire. Major rivers, including the Yamuna and Ganga, are highly contaminated, while urban water bodies like Bengaluru’s lakes have become toxic.
• Poor waste management compounds the issue, as overflowing landfills release harmful methane emissions.
• Without urgent interventions in air, water, and waste management, cities will continue to struggle with environmental degradation and declining public health.

The Challenge of Census Towns

• India’s urbanisation is also marked by the rise of census towns—settlements that function as cities but are governed as rural areas.
• Between 2001 and 2011, their numbers tripled, contributing significantly to urban expansion.
• However, their lack of formal urban status means they miss out on funding and infrastructure development.
• Integrating these towns into the urban governance framework is crucial for sustainable city planning and regional equity.

Lessons from Singapore’s Urban Transformation

• Singapore once faced challenges similar to those of Indian cities, including slums, pollution, congestion, and inadequate infrastructure.
• Through strategic urban planning, the city-state implemented sustainable policies that transformed it into a global leader.
• India’s urban development efforts can draw inspiration from Singapore’s model, focusing on land use efficiency, mass transit, affordable housing, and green urban spaces.

The Urban Challenge Fund: A Step Towards Transformation

• The Indian government’s Rs 1 lakh crore Urban Challenge Fund aims to reshape cities through projects on growth, redevelopment, and sustainability.
• The fund can drive reforms in waste management, air quality control, and transportation electrification.
• Introducing a performance-based competition among cities to improve livability, sustainability, and governance could accelerate urban transformation.

Conclusion

• Despite overcrowding, pollution, and infrastructural challenges, Indian cities have the potential to become global centers of innovation and sustainability.
• Strategic reforms in urban planning, governance, and environmental management can determine whether they thrive or continue to deteriorate.
• The next decade will be crucial in shaping their destiny—whether they become smart, green, and livable or remain burdened by congestion, pollution, and insecurity.

What are the Steps Needed to Address Urban Challenges?

Environment Related Initiatives: Sponge City Concept and Permeable Urban Landscapes: Implementing the “Sponge City” concept, which involves the integration of permeable pavements, green roofs, rainwater gardens, and other water-absorbing features into urban landscapes. Distributed Waste-to-Energy and Decentralised Waste Management Systems: Incentivizing community-based waste management initiatives and promoting public-private partnerships for waste collection, sorting, and processing. Smart Water Management and Recycling Infrastructure: Deploying smart water metering and monitoring systems to detect leaks, optimize water distribution, and promote efficient water usage. Urban Digital Twins and Predictive Modeling: Developing digital twins of urban areas, which are virtual replicas of cities, to simulate and analyse various scenarios, infrastructure projects, and environmental impacts. Integrating digital twins with urban governance platforms to enable data-driven decision-making, citizen engagement, and participatory urban planning processes. Smart City Infrastructure: Democratizing smart city technologies, such as intelligent traffic management systems, smart grids, and Securing Internet of Things (IoT)-enabled public services, to improve efficiency, reduce carbon emissions, and enhance the quality of life for citizens. Cybersecurity and Digital Infrastructure Resilience: Investing in robust cybersecurity measures, including advanced encryption, access controls, and real-time threat monitoring, to protect critical urban digital infrastructure from cyber threats. Accessibility and Awareness: The government’s efforts to address urbanisation through various initiatives often face significant challenges in terms of accessibility. Therefore better dissemination of information and participative governance can be a tool of inclusivity.

Practice Question: India’s urbanization is plagued by pollution, poor infrastructure, and climate vulnerabilities. Discuss the key challenges faced by Indian cities and suggest sustainable solutions to make them globally competitive and livable.  (250 Words /15 marks)

2. In America first, an opening

Topic: GS2 – International Relations GS3 – Indian Economy

Context

US President Donald Trump has proposed reciprocal tariffs to counter trade imbalances, which could significantly impact India’s exports, particularly in the agricultural sector.

Analysis of the news:

Trump’s Push for Reciprocal Tariffs and Its Impact on India

• US President Donald Trump’s renewed call for reciprocal tariffs aims to address the US trade deficit, which rose to $918.4 billion in 2024.
• While China accounted for the largest share at $295.4 billion, India’s deficit with the US stood at $45.7 billion.
• Trump has frequently criticized India’s high tariffs, calling it the “tariff king,” and reiterated that India would not be exempt from these new measures.
• The uncertainty surrounding the scope of these tariffs—whether they will apply to all goods or specific sectors—raises concerns for India’s export-driven economy.

Reciprocal Tariffs

Tariffs are taxes imposed by an importing country on foreign goods, making them more expensive for domestic consumers. For example, if a US citizen orders a Jamdani saree from India, US import tariffs will increase its price, affecting affordability. Higher tariffs slow down global trade by raising costs for all parties involved.

India’s High Tariff Structure: A Cause for Concern

• India’s tariff rates are significantly higher than those in the US.
• The simple average tariff rate in India is 17%, compared to 3.3% in the US.
• The disparity is even more evident in agriculture, where India imposes an average tariff of 39%, while the US maintains a much lower 5%. Trade-weighted tariffs further highlight this gap—India at 12% vs. the US at 2.2%.
• Given the stark differences in tariff structures, reciprocal tariffs could disproportionately affect India’s exports, especially in the agricultural sector.

The US as India’s Largest Agricultural Export Market

• The US is India’s top destination for agricultural exports, generating a trade surplus of $3.46 billion in 2023-24.
• Key Indian exports include shrimp, basmati rice, processed foods, and honey, while the US exports almonds, cotton, ethanol, and soybean oil to India.
• If Trump’s proposed tariffs materialize, duty-free Indian exports—especially shrimp—could lose their competitive edge, reducing India’s trade surplus with the US. Conversely, US agricultural exports to India might increase if tariff barriers are lowered.

Key Sectors Under Scrutiny: India’s High Tariffs on US Goods

The US has long sought greater access to the Indian market, particularly for:

• Whiskey (150% duty)
• Walnuts, chicken legs (100% duty)
• Dairy products like skimmed milk powder (SMP) (60% duty)
• Wheat, soybean, maize (40-50% duty)

Additionally, non-tariff barriers such as India’s restrictions on genetically modified (GM) crops have frustrated the US, which leads global GM crop production.

While India allows Bt cotton, it bans GM soy and maize, despite growing domestic demand for high-protein animal feed and ethanol production.

Balancing Protectionism and Market Access

• India must strike a balance between protecting its farmers and ensuring continued access to the lucrative US market.
• Discussions are underway under the “Mission 500” initiative, aiming to increase bilateral trade to $500 billion by 2030.
• Indian agricultural exports can grow further if market access is improved. However, many Indian agri-products such as food preparations, butter, and bovine meat face import duties exceeding 20% in the US, limiting their competitiveness.

Selective Concessions and Phased Tariff Reductions

India has shown some flexibility in lowering tariffs, such as reducing duties on Washington apples from 50% to 15%. Similar phased reductions could be considered for:

• Food preparations (150%)
• Walnuts (100%)
• Chicken legs (100%)
• Dairy products (30-60%)

Immediate tariff cuts on walnuts, cranberries, and blueberries could be implemented, while sensitive sectors like poultry might require a gradual approach to protect domestic producers.

Long-Term Strategy: Moving Beyond Tariffs

While tariff concessions provide short-term relief, India must strengthen its agricultural sector to ensure long-term competitiveness. Key strategies include:

1. Increased R&D Investment: India spends less than 0.5% of its agri-GDP on research, far below global benchmarks. Raising this to 1% is essential for boosting productivity.
2. Modernizing Agri-Value Chains: Expanding cold storage, upgrading logistics, and improving quality certification will enhance India’s export potential.
3. Developing Export Hubs: Key production clusters should be transformed into agri-export hubs (e.g., banana, mango, pomegranate exports to Russia, Korea, Japan, and Australia).

Conclusion:

• Trump’s tariff threats should serve as a wake-up call for Indian policymakers.
• Rather than relying on high tariffs and subsidies, India must transition towards a productivity-driven export strategy.
• Smart negotiations, investment in R&D, and improved value chains will ensure Indian agriculture remains competitive in an increasingly reciprocal global trade environment.

Impact on India

Exports Will Become Costlier: US may increase tariffs on Indian goods, making textiles, pharmaceuticals, and auto parts less competitive. Trade Deficit Will Shrink: India may import more from the US (like defense equipment, oil, and gas) to balance trade, reducing its $38 billion trade surplus with the US. Rupee May Weaken: More imports mean higher demand for US dollars, leading to a weaker rupee, increasing India’s import bill .Atmanirbhar Bharat May Suffer: India’s self-reliance push may slow down if the US pressures India to buy American goods. Impact on Foreign Investments: US firms may push for local production in India to avoid high tariffs, boosting FDI (Foreign Direct Investment).

Practice Question: The proposed reciprocal tariffs by the US could impact India’s trade dynamics, particularly in the agricultural sector. Discuss the implications of such tariffs on India’s exports and suggest strategies to enhance India’s trade competitiveness.  (250 Words /15 marks)

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