Redefining Urbanisation in India
The NITI Aayog is developing a framework to redefine city boundaries, emphasizing economic indicators and land use. This approach is necessary as India's current criteria for urbanization are quite restrictive compared to global standards.
Current Urbanisation Criteria
- Existing Criteria: Minimum population of 5,000, population density of 400 persons per sq km, and 75% male main non-agricultural employment.
- International Comparisons: The US, UK, and Australia use population thresholds. In Asia and Africa, employment in non-farm pursuits is a major criterion, often between 50% to 60%.
Study Analysis
- A 2020 study, Reclassifying Urban Areas in India: An Analysis of 2011, simulated scenarios using relaxed urbanisation criteria.
- Under the most lenient definition, India could have been 69% urban if density alone was considered.
- Using full-time employment of both genders, half of India would be classified as urban by 2011 standards.
Economic Implications
- Urbanisation correlates with higher per-capita income; countries achieving $10,000 per capita income are typically 60% urban.
- India's low per-capita income indicates inefficiencies in urban infrastructure.
Future Directions and Policy Suggestions
- NITI Aayog's Vision: Focus on promoting industry, services, and new sectors like tourism and healthcare.
- A study found that cities showed decreased sectoral specialisation from 1991 to 2001, suggesting a need for targeted infrastructure investments.
- Use of location quotients (LQ) and shift share analyses revealed that specialisation advantages persisted in certain economic sectors.
- Financial intermediation and real estate had the highest LQ, except in Delhi.
Recommendations
- Develop local datasets and servers for authentic urbanisation analysis.
- Utilize standard tools to monitor cities' economic specialisations, urging the timely publication of Census 2021 data.