India's ₹1 Lakh Crore Urban Challenge Fund: A Game-Changer for Sustainable City Development & Employment

In a historic step towards India’s urban development, Prime Minister Narendra Modi announced a Rs 1 lakh crore ‘Urban Challenge Fund’. This ₹1 Lakh Crore Urban Challenge Fund, A Game-Changer for Sustainable City Development & Employment. It has been created as part of the budget announcement for the financial year 2024-25, which will work towards making the country’s urbanization system more advanced and sustainable. Experts believe that India’s urban population will cross 900 million by 2047. The main objective of this fund is to ensure planned urbanization, infrastructure development and financial stability for this huge population.

Sustainable urban development and digital integration

Prime Minister Modi said that Indian cities will be developed as “smart cities”, which will have transportation systems, housing, economic zones and climate resilient plans. Along with increasing connectivity between cities, emphasis will be placed on digital integration and creating new employment opportunities. He also said that urban development will not be limited to government initiatives alone, but the private sector will also be encouraged. Special plans will be taken especially for the housing sector and industrial areas, so that the impact of urbanization is more effective.

Expansion of AMRUT 2.0 and Jal Jeevan Mission

The government is working to further strengthen the AMRUT 2.0 (Atal Mission for Rejuvenation and Urban Transformation) and Jal Jeevan Mission projects. Through these projects, safe water supply to cities, waste management, conservation of water bodies and improvement of the quality of the urban environment will be done.
Prime Minister Modi said, "The current budget has laid a strong foundation in our economy and employment sector. Urban development, infrastructure and innovation are being given importance simultaneously."

Plans to make India a global tourism and wellness hub

Special steps have been taken in the new budget to further strengthen the tourism sector. According to the government's plan, 50 tourist destinations across the country will be upgraded to international standards.
The Prime Minister said that to encourage the tourism industry, hotels and tourism-related institutions will be given special facilities in the infrastructure development sector. To boost the tourism industry, the ‘Homestay’ scheme, ‘Incredible India’, ‘Heal in India’ and ‘Land of the Buddha’ initiatives are being strengthened to attract foreign tourists.

Youth Skill Development and Employment

At the ‘Invest in People’ webinar on employment and skill development, Union Minister of Labour and Employment Mansukh Mandaviya said that the government’s goal is to enable India’s youth to compete globally.  He said that 171 crore jobs were created between 2014 and 2024, out of which 46 crore jobs were created in the last year alone. In particular, the opportunities for new startups and small businesses have increased through the Mudra Yojana. As a result of this initiative, India’s youth are getting more opportunities to become entrepreneurs.

Unemployment rate has come down by half

According to government data, the unemployment rate was 6% in 2017-18, which came down to 3.2% in 2023-24. And, female employment increased from 22% to 40.3%. As consequent positive impacts will be felt on employment generation, skill development, and overall Indian economy.

Conclusion

Prime Minister Modi's Rs 1 lakh crore 'Urban Challenge Fund' is a groundbreaking step in the development of India's cities.  India will become a developed and self-reliant country through infrastructure development, digital connectivity, eco-friendly urban planning and employment generation and also play a significant role in India's future urban lifestyle, tourism industry and economic growth.