Urbanization Economics — Policy Reforms

Entry	Year	Description	Impact
74th Constitutional Amendment Act	1992	This amendment inserted Part IXA, 'The Municipalities', into the Constitution, granting constitutional status to Urban Local Bodies (ULBs). It mandated the constitution of Municipalities, Wards Committees, and Metropolitan/District Planning Committees, and defined their powers, functions, and financial resources.	The 74th CAA fundamentally restructured urban governance in India, aiming to decentralize power and empower ULBs. It provided a legal framework for local self-governance in urban areas, enabling them to plan for economic development and social justice, levy taxes, and manage urban services. This has significant implications for urban economics, as it theoretically allows for more responsive and efficient local economic planning and resource mobilization, though its full implementation and impact vary across states due to capacity and financial constraints.