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THE CHALLENGES FACING INDIA’S GROWING CITIES

Durga Shanker Mishra, Former Secretary, Ministry of Housing and Urban Affairs, discusses housing reforms, smart cities and why Tier-2 cities will shape India’s next phase of urban growth.

BY Asma Rafat
Published - Wednesday, 29 Jul, 2026
THE CHALLENGES FACING INDIA’S GROWING CITIES

Q What do you think is India’s biggest contribution to India’s urban development journey?

Durga Shanker Mishra: For the first time, urban sector has been kept on a priority. So many national missions like Swachh Bharat Mission, Housing for All, Pradhan Mantri Awas Yojana, Atal Mission for Urban Rejuvenation and Transformation (AMRUT), HRIDAY Yojana, National Urban Livelihood Mission and metro projects were launched. Our cities are growing and urban populations are increasing, but people face challenges in housing, hygiene, water, sewerage, drainage, livelihood opportunities and mobility. All these issues were addressed through the national missions. This is the biggest achievement. There is now hope, and a great deal of capacity building has been done, which will continue to improve urban development over time.


Q How do you assess the impact of Smart Cities Mission and Pradhan Mantri Awas Yojana?

Durga Shanker Mishra: The Smart Cities Mission introduced a completely new paradigm in India’s development history. For the first time, cities participated in a challenge-based process and 100 cities were selected. Citizens were asked what they wanted their cities to become over the next five to seven years. It was people’s participation in city-making. The mission gave cities an opportunity to experiment and develop new solutions. There has been tremendous learning on making roads, water systems, housing, energy, healthcare and public services smarter. Smartness means getting more from less. By using technology alongside infrastructure, cities can use resources more efficiently and serve more people. Pradhan Mantri Awas Yojana is another major achievement. Before 2014, around 13 lakh houses were sanctioned, 8.5 lakh were constructed and only about 6 lakh were occupied. Since the launch of Housing for All in 2015, around 125 lakh urban houses have been sanctioned and nearly one crore houses have been constructed and occupied. These homes come with water supply, electricity, sanitation and access to livelihoods. It is an achievement that has surprised many across the world. Under PMAY 2.0, another one crore houses are being planned. One important initiative that emerged after COVID-19 was affordable rental housing. We realised that migrant workers, students and low-income groups needed affordable, quality rental accommodation. The Affordable Rental Housing Complexes scheme, started in 2020, is now one of the verticals of PMAY 2.0.


Q What do you think will be the biggest challenge Indian cities face over the next decade?

Durga Shanker Mishra: The biggest challenge is urban planning. There has been significant learning from the missions launched since 2014, but implementing those lessons requires good planning and capable planners. If cities are planned and executed properly, issues such as slums and unauthorised colonies can be minimised. When planning does not match people’s needs, informal settlements emerge. Another challenge is scaling the learnings from the Smart Cities Mission to all cities across the country.


Q What do you think about the regularisation of unauthorised colonies?

Durga Shanker Mishra: The PM UDAY scheme created a framework for regularising unauthorised colonies. However, regularisation alone is not enough. The challenge is to provide legal rights and then redevelop these colonies. Many of these areas have poor living conditions despite being located in the national capital. What is needed now is redevelopment so they can become sustainable, green, clean and liveable neighbourhoods.


Q How can India balance urban growth with sustainability?

Durga Shanker Mishra: There is already a great deal of learning available within the country. Whether it is water conservation, rainwater harvesting, water security or converting waste into wealth, solutions exist. The challenge is implementing these solutions effectively on the ground and scaling them across cities.


Q How can India tackle congestion in cities, especially as people move towards Tier-2 cities?

Durga Shanker Mishra: Cities must be planned around efficient mobility systems. Public transport should be strengthened through quality buses, metro systems and other urban transit solutions. Multi-modal transport and digital platforms can help ensure seamless travel. We also need to create walkable and cyclable cities. Pedestrian infrastructure is often poor, making people feel unsafe. Promoting cycling, walking and transit-oriented development can reduce congestion and pollution. Ideally, people should be able to access most daily needs within their neighbourhoods and only travel longer distances when necessary.


Q What do you have to say about the growth taking place in Tier-2 and Tier-3 cities?

Durga Shanker Mishra: The growth of Tier-2 cities is a very positive development. These cities have lower land costs, greater land availability and more opportunities for expansion. Large metropolitan cities such as Delhi, Mumbai, Chennai and Hyderabad are already heavily congested and have limited capacity to absorb additional population. At the same time, new industries, manufacturing activity, business opportunities and the Make in India initiative are attracting people to Tier 2 cities. These cities have reached a critical mass where infrastructure, mobility and basic services are improving, making them increasingly attractive destinations for investment and growth.

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