“We can’t run cities from state capitals”: Shri Rajiv Gauba, Member, NITI Aayog at 2nd National Urban Conclave, calls for empowered city governments to Unlock India’s Growth Potential
On 25 October 2026, NITI Aayog Member Rajiv Gauba used the valedictory session of the 2nd National Urban Conclave to call for empowered city governments. The intervention connects
Why in news
On 25 October 2026, NITI Aayog Member Rajiv Gauba used the valedictory session of the 2nd National Urban Conclave to call for empowered city governments. The intervention connects urban governance with planning, municipal finance, service delivery and citizen participation, and presents city-level authority as necessar
Static anchor
Urban local bodies are constitutionally recognised institutions of local self-government under Part IX-A, with the Twelfth Schedule listing 18 functions that may be assigned to municipalities. The source issue concerns whether these bodies possess sufficient authority, resources and institutional capacity to perform th
Background
- The 74th Constitutional Amendment created Part IX-A on municipalities and associated urban local governance with the Twelfth Schedule's 18 functions. The constitutional design permits assignment of these functions, but effective devolution
- Urban governance commonly involves municipalities, state departments and parastatal agencies. When responsibilities and finances are fragmented, citizens may face difficulty identifying the authority responsible for water, transport, planni
- The supplied official record links urban governance reform with planning, municipal finance, housing affordability, citizen participation and India's wider urban transition.
Reusable anchors
74th Amendment: Part IX-A and Twelfth Schedule
Official facts
“We can’t run cities from state capitals”: Shri Rajiv Gauba, Member, NITI Aayog at 2nd National Urban Conclave, calls for empowered city governments to Unlock India’s Growth Potential
Analysis — not an official claim
Awaiting a reviewed note.
India implications
- States would need to clarify the authority of municipalities vis-à-vis state-controlled agencies and devolve the 18 urban functions with adequate staff and finances.
- Regular State Finance Commissions and predictable fiscal transfers could improve municipal fiscal capacity, while property-tax and user-charge reforms may strengthen own-source revenue.
- Better planning coordination could connect housing, transport, land use and economic activity; however, affordability and inclusion must remain explicit objectives.
- Greater local authority can deepen citizen participation, but it also requires transparency, ward-level accountability and safeguards for vulnerable groups.
Way forward
- States should enact or amend Municipal Acts to clarify city-government authority, ensure timely elections and define accountable relationships among mayors, councils and state agencies.
- Devolve functions together with funds, personnel, data and technical capacity; avoid transferring responsibilities without implementation capability.
- Strengthen property-tax administration, user-charge recovery and regular State Finance Commissions while protecting affordability for vulnerable households.
- Integrate land use, transport, housing, water and environmental planning through metropolitan and city-level coordination mechanisms.
Prelims traps
Awaiting a reviewed note.
Mains practice
Discuss how empowering city governments can improve urban governance in India. Examine the institutional, fiscal and planning reforms required for meaningful decentralisation.
Use in an answer
Use the issue to connect constitutional decentralisation with urbanisation, cooperative federalism, municipal finance, accountable governance and inclusive planning. Distinguish constitutional enabling provisions from reform proposals made by NITI Aayog.
Recall card
NITI Aayog’s 25 October 2026 urban-governance intervention frames city empowerment as a devolution problem: municipalities need clear authority, timely elections, capable leadership, devolved functions, stronger own revenues and predictable state transfers. Link this to Part IX-A and the Twelfth Schedule, while retaining democratic checks, state coordination and inclusion.