CITY BUSINESS PLAN

1 INTRODUCTION
1.1 Introduction
This chapter explains the contextual and conceptual underpinnings of a City Business Plan (CBP) in
terms of a brief overall status of urban poverty in India, and in Bihar, and the significance of a city
business plan in facilitating a city‟s inclusive economic growth.
1.2 Urban Poverty in India
While India is becoming increasingly urbanised, the country is witnessing a corresponding increase in
the concentration of poor people in urban areas.
As per the latest survey report of the National Statistical Survey Organisation (NSSO) there are over
80 million poor people living in the cities of India. In some of the larger states, the ratio of urban
poverty is higher than that of rural poverty leading to the phenomenon of „Urbanisation of Poverty‟.
Urban poverty poses the problems of housing, water, sanitation, health, education, social security, and
livelihood along with the urgency to address the special needs of vulnerable groups such as women,
children and aged people. In many smaller cities (particularly, towns) with an underdeveloped
industrial and commercial sector, most poor people are involved in informal sector activities where
there is constant threat of eviction and almost non-existent social security cover. With growing
poverty, such Indian cities have been grappling with the challenges of making the cities sustainable,
i.e. inclusive, productive, efficient and manageable.
1.3 Urban Poverty in Bihar
Bihar is the third largest state in terms of total population as per the 2001 census and influx into urban
areas in the state has put urban infrastructure and services under severe stress. The increasing pressure
on the urban environment is taking its toll on the quality of life of the urban population. Further, in
urban areas, more than 59.8% of the household heads are self-employed and only around 30% have
regular employment. While casual wage labour represents only around 10% of occupation among all
urban household heads, in the poorest quintile, the majority of the urban poor has no choice but to
work in this vulnerable sector.
Cities hold tremendous potential as engines of economic and social development, creating jobs, and
generating wealth through economies of scale. They need to be sustained and augmented through high
urban productivity for better economic growth. For cities to become growth oriented and productive it
is also essential to attain efficiency and equity in the delivery and financing of urban infrastructure.
An integrated approach is needed to address various dimensions of urban development. Infrastructure
inadequacies in urban areas are a major factor constraining Bihar‟s growth. The tasks involved in this
regard are to:
Final Report
1-1