With a motive to alleviate population pressure and address the multitude of issues arising from overcrowding in various existing cities throughout the country, the Indian government has formulated a strategic plan to establish 8 new cities.

M.B. Singh, the Director of the G20 unit within the Union Housing and Urban Affairs Department, recently disclosed that the 15th Finance Commission recommended the development of new cities in one of its reports. Singh shared this information while speaking to the Press Trust of India during the U20 meeting held in Indore.

Owing to this recommendation, as stated in the 15th Finance Commission report for 2021-26, which was presented in Parliament on February 1, 2021, a sum of ₹8,000 crore has been proposed for the establishment of the new cities across the country.

Several suggestions have been received for the establishment of new cities or expansion of existing ones, including Gurgaon (Haryana), Jabalpur Extension (Madhya Pradesh), Ayodhya (Uttar Pradesh), GIFT City Expansion (Gujarat), Nagaki Global City (Nagaland), New MOPA Ayush City (Goa) and Bantala Greenfield City (West Bengal).

Reportedly, the rationale behind establishing new cities in the country stems from the inadequacy of existing cities in meeting the needs of citizens. With this, the unplanned expansion on the outskirts of cities by the public further leads to several disruptive consequences.

Singh emphasized that the creation of a new city would have a positive impact on social and economic activities within a radius of 200 kilometers.

The government has previously undertaken the development of planned cities such as Amaravati (Andhra Pradesh), Dholera (Gujarat), Naya Raipur (Chhattisgarh), and GIFT City (Gujarat), among others.