Day 37 – Q. 5. “Smaller cities in India—Tier-2 and Tier-3—are emerging as new growth hubs. Critically analyse the opportunities and challenges they present in ensuring balanced urban development.” (250 words, 15 marks)

  • IASbaba
  • July 14, 2025
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Ethics Theory, TLP-UPSC Mains Answer Writing

Q. 5. “Smaller cities in India—Tier-2 and Tier-3—are emerging as new growth hubs. Critically analyse the opportunities and challenges they present in ensuring balanced urban development.” (250 words, 15 marks)


Introduction 

Tier-2 and Tier-3 cities are urban centres with smaller populations and relatively lower  infrastructure than metros, but high growth potential. Their rise in recent years presents a  significant opportunity for balanced development, though not without major challenges. 

Body 

Opportunities Presented by Smaller Cities 

  1. Economic Decentralisation: These cities help reduce pressure on metros by attracting  industries and startups. Example: Coimbatore and Jaipur have become IT and textile hubs, easing load off  Bengaluru and Delhi
  1. Lower Cost Advantage: Affordable land and living costs attract businesses and migrant  talent. Example: Many startups are relocating from Mumbai to cities like Nashik and Nagpur for cost savings. 
  1. Improved Quality of Life: Better air quality, lower congestion, and community living  appeal to the middle class. Example: Cities like Bhubaneswar and Kochi rank high on livability indices.
  2. Government Push and Infrastructure Boost: Schemes like AMRUT, Smart Cities  Mission, and PM Gati Shakti are prioritising these areas. Example: Indore‘s transformation under the Smart Cities Mission showcases this impact. However, Challenges Persist in Realising This Potential. 

Key Challenges 

  1. Inadequate Urban Planning: Unplanned growth leads to haphazard construction and  traffic issues. Example: Cities like Patna and Kanpur face poor drainage and road congestion due to  rapid expansion. 
  1. Strained Infrastructure: Water, waste, and power systems are often outdated or  overstressed. Example: Varanasi struggles with sewage treatment despite tourism-driven growth.
  2. Limited Administrative Capacity: Urban local bodies often lack skilled manpower and  financial autonomy. Example: Smaller ULBs face delays in executing Smart City projects due to lack of  expertise.
  1. Social Disparities and Informal Growth: Slum expansion and exclusion of migrant labour  remain under-addressed. Example: Surat’s outer regions have high concentrations of informal settlements with  poor civic services. 

Measures to Ensure Balanced Urban Development 

  • Strengthen Urban Governance: Build capacity of local bodies and ensure participatory  planning processes. 

Recommendation: Devolve 3Fs (functions, funds, functionaries) as per 74th Constitutional  Amendment. 

  • Promote Sustainable Infrastructure: Invest in green public transport, waste recycling, and  renewable energy. 

Recommendation: Encourage solar rooftops, e-buses, and decentralized waste systems.

  • Digital and Economic Inclusion: Support digital literacy and access to formal employment  for all. 

Recommendation: Skill-building under PMKVY and Digital India can reduce inequality.

  • Develop Regional Planning Mechanisms: Align district, state, and urban plans for  cohesive development. 

Recommendation: Metropolitan planning committees and regional master plans must be  empowered. 

Conclusion

Smaller cities are key to India’s next phase of urban growth. With effective governance,  infrastructure investment, and inclusive policies, they can bridge the rural-urban divide. NITI  Aayog stresses their role in achieving sustainable and balanced urbanisation.

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