Indian Economic Survey 2001-02<br>Focus on urban development
By A Special Correspondent
The Economic Survey points out that the level of urbanisation in India as per 2001 census has increased from 25.7 per cent in 1990-91 to 27.8 per cent in 2001. Urbanisation in states like Tamil Nadu and Maharashtra exceeds more than 40 per cent. There are now 35 cities with a population of above 1 million, as compared with 23 in 1991.
The growth in the urban population will require additional investments in urban infrastructure for the provision of services such as roads, water supply and sewerage, urban transportation and the like. Recent studies also suggest that large productivity gains can be obtained, if regulatory impediments to land assembly, development and construction in urban areas are removed. While the survey points out that the Urban Land Ceiling Act has been repealed by the Central government, most state governments are still to follow. Similarly, most states have Rent Control Acts, which inhibit the construction and maintenance of rental housing.
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