Mental Shift Needed for Investment in India's Lagging Urban Areas

30.04.25 08:08 AM - By Sarv Insights

The Story 

India’s rapid urbanization has largely focused on metropolitan hubs, leaving many lower-tier and backward cities behind. While these areas hold immense untapped potential, they continue to face neglect in terms of infrastructure, employment, and sustainable development. What’s needed is not just financial investment but a significant mental shift in how we perceive and plan growth for these regions.

Backward cities are often stereotyped as unviable or too risky for investment. However, with the right approach, these urban areas can be transformed into centers of opportunity. Policymakers, private investors, and citizens alike need to move beyond outdated assumptions. Instead of seeing these cities as burdens, they should be viewed as blank canvases ready for innovative urban planning, affordable housing, green energy, and digital infrastructure.

This transformation begins with mindset. Government schemes must focus not just on short-term fixes but on long-term sustainable planning. Private investors should consider the benefits of early entry into growing markets, while local administrations need to foster a pro-development, transparent environment.

Moreover, investment should be people-centric. Education, healthcare, and skill development should be prioritized alongside physical infrastructure. This holistic approach not only creates better living conditions but also nurtures local talent, reduces migration, and drives self-sustained economic growth.

With India aiming to become a $5 trillion economy, the role of its smaller cities cannot be ignored. A collective mental shift—across government, industry, and society—is essential to unlock the true potential of these areas. Only then can backward cities rise, contributing meaningfully to India’s inclusive and balanced growth.

Sarv Insights