AS AMERICA TURNS INWARD, INDIA MUST BUILD CITIES THAT INSPIRE TALENT

27th October, 2025

Copyright infringement not intended

Picture Courtesy:  INDIAN EXPRESS

Context

India could become a global talent hub if it develops its cities to attract and retain talent, capitalizing on the U.S.'s insular approach and the "America First" stance on immigration.

How America's Inward Turn offers a Strategic Opportunity for India?

Shrinking Immigration

Increased US H-1B visa scrutiny disproportionately impacts Indian professionals (71% of FY24 visas), pushing skilled individuals to seek opportunities beyond Western nations.

Geopolitical Realignments

Global supply chain shifts, including reshoring and friendshoring, are boosting demand for skilled labor in emerging economies like India due to their strong talent pools and improving infrastructure

India's Demographic Dividend and Economic Growth

India is set to be the third-largest economy by 2027, fueled by its youth, strong services, growing manufacturing (backed by 'Make in India' and 'Atmanirbhar Bharat'), making it a global talent magnet.

Potential for Reverse Brain Drain

India has an opportunity for "brain gain," reversing the "brain drain" phenomenon, due to the current global environment and internal improvements, attracting both the Indian diaspora and international professionals.

Role of Cities in Attracting and Retaining Talent

Cities are centers of innovation, economic activity, and cultural exchange.

Modern talent, especially young professionals, considers factors beyond job availability when choosing a place to live.

Key drivers include:

  • Quality of Life: Cleanliness, safety, affordable housing, access to healthcare and education, and vibrant amenities.
  • Economic Opportunities and Innovation Ecosystem: Dynamic job markets, encouraging startup environments, and avenues for professional development.
  • Connectivity: Efficient public transportation, robust digital infrastructure, and easy mobility.
  • Social and Cultural Inclusivity: Cities that promote an emotional connection, rich culture, diversity, and strong social infrastructure, improve overall quality of life.

Indian Cities in the Global Talent Landscape: Current Status and Challenges

  • India is undergoing rapid urbanization:
    • Urban population at 36.87% in 2024. (Source: United Nations)
    • Projected to exceed 40% by 2030. (Source: World Bank)
  • Urban areas contribute to Indian economy:
    • Account for 60% of GDP in 2024 (Source: NITI Aayog).
    • Estimated to reach 70% by 2030. (Source: PIB)
  • Five Indian cities (Bengaluru, Delhi, Mumbai, Hyderabad, and Pune) are among the top 15 fastest-growing urban centers globally by 2033 (Source: Savills Growth Hubs Index).

Indian cities face liveability challenges

Mumbai and New Delhi ranked 141st worldwide in the Economist Intelligence Unit's Global Liveability Index 2024.

Inadequate Planning and Infrastructure

Approximately 65% of urban settlements lack a master plan, leading to uncontrolled growth and insufficient systems for transportation, water supply, sanitation, and waste management. (Source: NITI Aayog)

Housing Shortages and Inequality

Rapid urbanization has led to 49% of the urban population living in overcrowded slums due to a lack of affordable housing, while housing for the wealthy is prioritized. (Source: World Bank)

Environmental Degradation

Indian cities face severe air and water pollution, urban flooding, and the "heat island effect," impacting public health and quality of life. According to IQAir, 83 of 100 Most Polluted Cities are in India. 

Weak Urban Governance

Despite the 74th Constitutional Amendment, urban local bodies lack adequate devolution of funds, functions, and functionaries, leading to fragmented planning and implementation.

Poverty-Driven Urbanization

Indian urbanization, driven by economic hardship and rural migration rather than industrialization, has led to a large informal sector with poor conditions, unlike Western industrialized nations.

Core Pillars for Building Talent-Inspiring Cities

Economic Vibrancy

Innovation Ecosystems: Promote startups and R&D (e.g., Bengaluru's IT/startup culture).

Sector-Specific Clusters: Develop specialized zones (e.g., GIFT City for finance).

Ease of Doing Business: Streamline regulations and bureaucracy at the city level.

Social & Human Infrastructure

Quality Education & Healthcare: Premier institutions (e.g., Pune as an educational hub, new AIIMS).

Affordable & Quality Housing: Address urban housing crises (PMAY-U initiative).

Cultural & Recreational Amenities: Develop green spaces and a vibrant cultural scene.

Safety & Security: Ensure a secure environment for all citizens.

Physical Infrastructure

Efficient Urban Mobility: Integrated public transport (e.g., Delhi Metro).

Reliable Utilities: 24/7 power, clean water, and efficient waste management.

Digital Connectivity: Robust high-speed internet (e.g., 5G rollout).

Sustainable Infrastructure: Green buildings and climate-resilient planning.

Progressive Governance

Transparent Administration: Reduce red tape and corruption through digitization.

Citizen-Centric Services: Use technology for service delivery and grievance redressal. 

Effective Urban Planning: Implement long-term, integrated master plans.

Way Forward

Empowering Urban Local Bodies (ULBs)

Fully devolve financial and administrative powers to ULBs as envisioned by the 74th Constitutional Amendment Act.

Integrated and Long-Term Urban Planning

Shift to comprehensive, regional planning that integrates land use, transportation, economic development, and environmental considerations, guided by a National Urbanisation Policy as suggested by NITI Aayog.

Innovative Financing Mechanisms

Strengthen municipal finances through optimized property tax collection, user charges, municipal bonds, land value capture financing, and Public-Private Partnerships (PPPs).

Leveraging Technology for Smart Governance

Utilize predictive analytics, AI, and IoT for infrastructure maintenance, traffic optimization, resource allocation, real-time citizen feedback, and enhanced public safety through Integrated Command and Control Centres.

Focus on Sustainability and Climate Resilience

Mandate green building codes, promote renewable energy, invest in nature-based water solutions, and develop comprehensive climate action plans for all major cities.

Talent-Centric Urban Policies

Attract and retain skilled professionals through initiatives like fast-track residency permits, dedicated innovation districts, cultural exchange programs, and an improved overall quality of life.

Conclusion
India can build appealing, sustainable, and economically vibrant cities through comprehensive reforms, attracting talent essential for national growth and development during "Amrit Kaal."

Source:  INDIAN EXPRESS

PRACTICE QUESTION

Q. As developed nations adopt more insular policies, India has a unique opportunity to attract global talent. Critically analyze. 250 words

Frequently Asked Questions (FAQs)

Pravasi Bharatiya Divas is a biennial event held on January 9th to honor the contributions of the overseas Indian community to India's development. It provides a platform for the diaspora to engage with the Indian government and reconnect with their roots.

KIP is an initiative of the Ministry of External Affairs that aims to familiarize Indian-origin youth (aged 21–35) with their ancestral homeland. Participants travel for approximately three weeks to learn about India's contemporary progress, culture, and heritage.

The OCI scheme offers a special status to foreign citizens of Indian origin, providing a multiple-entry, life-long visa to visit India. It grants certain economic, financial, and educational benefits, but does not confer political rights like voting or holding public office.

Let's Get In Touch!