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Urbanisation with sustainability: SBI calls for more Smart Cities and AMRUT projects

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The government should ramp up efforts on programmes like the Smart Cities Mission and AMRUT to promote greener urban development and strengthen ecological resilience, a new report by the State Bank of India (SBI) recommended.According to the report, these initiatives are crucial in managing India’s rapid urban growth while safeguarding the environment. It explained that these schemes are playing a key role in aligning environmental sustainability with urban expansion, supporting what the report termed a “U-shaped hypothesis”.What is a U-shaped hypothesis? Under this theory, the initial phases of urbanisation typically result in forest loss, but as it reaches a more advanced stage, particularly beyond the 40% mark, stronger environmental policies kick in, helping forest cover recover and improving land-use planning. This helps in enhancing the institutional capacity which in turn balances urban expansion along with environmental conversation.To maintain long-term social and economic stability, SBI urged the country to pursue urbanisation with sustainability at its core. “India must therefore accelerate urbanisation while embedding sustainability at its core,” the report said, quoted by ANI.The bank further highlighted the importance of supporting India’s transition to green energy, calling for increased investments in green hydrogen, biofuels, solar parks, wind farms, biogas plants, and other renewable infrastructure. These efforts, it said, will attract private investment, support the creation of climate-resilient cities, and position India as a global leader in low-carbon development.The report also pointed to the growing potential of green bonds in financing sustainable urban projects. However, it cautioned that for green bonds to be truly effective, they must be backed by robust environmental regulations, stricter anti-deforestation laws, and heightened public awareness.The SBI report noted that India’s urban growth must be accompanied with sustainability to secure a greener and more resilient future for its cities.

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