Indian Economy·Policy Reforms

Urban Infrastructure — Policy Reforms

Constitution VerifiedUPSC Verified
Version 1Updated 7 Mar 2026
EntryYearDescriptionImpact
74th Constitutional Amendment Act1992This landmark amendment inserted Part IXA, 'The Municipalities', into the Constitution of India, comprising Articles 243P to 243ZG. It granted constitutional recognition to Urban Local Bodies (ULBs), making them institutions of self-government. It mandated the constitution of different types of municipalities (Nagar Panchayats, Municipal Councils, Municipal Corporations) and provided for their composition, reservation of seats, duration, powers, and responsibilities.Revolutionized urban governance by decentralizing power and empowering ULBs. It provided a constitutional framework for urban planning, service delivery, and local economic development, listing 18 functional areas in the Twelfth Schedule. It also mandated the establishment of State Finance Commissions for ULB finances and District/Metropolitan Planning Committees for integrated planning. While implementation has been uneven, it laid the essential legal groundwork for modern urban infrastructure development and governance in India.
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