For programs to be responsive to the specific spatial contexts, growth drivers, constraints to economic activity, and the economic potential of cities in India's complex city system, which comprises of 4,041 statutory cities and towns as per the 2011 census, a one-size-fits-all approach to urban growth will not work and a new approach to incentivizing urban growth hubs is needed-for several reasons: First, satellite analysis undertaken as part of this report shows that cities across class sizes face unplanned peri-urban growth, and in 2020, an estimated thirty two percent of built-up area was outside of statutory city boundaries. Cities are integrated labor markets, but due to unplanned peri-urban growth, the geographic boundaries of local labor markets do not necessarily coincide with those of existing administrative units and municipal boundaries. As such cities need to rethink their "urban growth boundaries." Second, cities face substantial differences in governance structures, municipal capacities, access to markets, connectivity, skills, and labor pool. Thus, the scope for growth varies across urban areas. Third, most cities face many cross-cutting constraints such as access to serviced land and infrastructure finance and will need to prioritize interventions. Fourth, while industrial estates, corridors and zones are critical in terms of providing employment opportunities, systematic planning for urbanizing areas around industrial zones lags industrial planning. Strengthening India's system of cities will be critical to meeting its ambitious industrial and economic development goals
