India is one of the fastest growing economy in the world next to
India’s economy is the tenth-largest ( Nominal GDP) in the world
and third-largest by purchasing power.
India was the 19th-largest in merchandise and 6th largest
services exporter in the world in 2013.
GDP (sector wise)
1. Service sector - 64.8%
2. Industry - 21.5
3. Agriculture - 13.7
Human settlement with a minimum population of
5000 persons, with 75% of the male working
population engaged in non-agricultural activities
and population density of 400 persons per sq. km.
• Urbanization in India was mainly started after independence,
due to adoption of mixed economy by the country which gave
rise to the development of private sector.
Table: 1 Total population percentage in urban areas
• Rate of urbanization: 2.4% (2010-15 est.)
Source: censes 2011( Govt. of India)
Year (census) Population percentage
Table: 2 Classification of urban centers
Sl No Type Population
1. Conurbation Three - Ten million
2. Metropolis One – Three million
3. Large city Three – Ten lack
4. City One – Three lack
5. Large town 20,000- 100,000
6. Town 1,000- 20,000
7. Village 100- 1,000
Causes of Urbanization
Expansion in government services.
Migration of people.
Infrastructure facilities in the urban areas
Growth of private sector
Facts about Urbanization in India
• Mckinsey global institute estimated that nearly 70% new jobs
will be created by 2030.
• Urbanization leads fourfold increase in per capita income by
• Estimated that the urban population increase from 340
million(2008) to 590 million by 2030.
Urbanization is expanding at a faster rate
E.g. 1971 to 2008 population increased to 230 million.
estimated to be more then 250 million population by 2025.
Urban economy provides 85% of total tax revenue.
200 million rural population are directly benefited from
Tamil Nadu, Gujarat, Maharashtra, Karnataka and Punjab have
more population living in urban areas.
Source: Mckinsey Global Institute analysis(2008)
12fig. 3: Urbanization percentage by 2030 in India
Source :Mckinsey Global institute analysis (2008)
fig. 4 : Population in India By 2030
Source :Source :Mckinsey Global institute analysis (2008)
Fig. 6: Average national income by 2030
Source :Indian Urbanization Economic model: Mckinsey Global institute analysis (2008)
• Cities need 53.1($1.2 trillion) trillion rupees for creating
infrastructural facilities by 2030.
• India has to spent $134 per capita per year which is almost
eight times spending today in per capita.
• Indian spending average of 0.5 percent of GDP to urban
infrastructure and it has to increase 2 percent of GDP in future.
fig.:7(A)Performance of services in Urban
fig. 7(B)Performance of services in Urban
19fig. : 8 Element of urban operating model
Source : Mckinsey Global Institute analysis (2008)
• Central government developmental fund.
• State government funds.
• Tax collection
• Rent for use of resources
• Public private partnership.
• Other charges
fig.: 9 Governance model
Source: Mckinsey Global institute analysis (2008)
• The city plan need to be well defined and provide all the
information about the city.
• Create well-resourced planning organizations at metropolitan
and municipal levels .
• The planning should be latest including new technology and
• Policies for affordable housing and land allocation.
• Polices related to transport sector.
• Polices about environmental protection.
• Taxation policies for urban people.
Source: Mckinsey Global institute analysis (2008)
Modi’s Smart City concept
• Central government has planned to 100 smart cities in India.
• Eight cities with more then four million people will developing
as a satellite smart city with Rs.1000 crore for each city.
• 45 cities with one to four million people will be upgrading to
• 17 capital cities upgraded to smart city irrespective of their
• 10 smart cites with tourist and religious significance .
• The program is planned to launch on December 25, on the
birthday of formal PM Atal Bihari Bajpayee
• Listed smart cities in Karnataka are Badami, Bengaluru, Bidar,
Vijayapura, Kalaburagi, Mahakuta and Pattadakallu
Five elements of smart cities
• In terms of infrastructure, the smart cities should have 24x7
availability of high quality utility services like water and power.
• A robust transport system that emphasizes on public
• In social infrastructure, the cities need to be provide
opportunities for jobs and livelihoods for its inhabitants.
Smart cities elements….
• The smart cities need to have proper facilities for
entertainment and the safety and security of the people.
• They should minimize waste by increasing energy efficiency
and reducing water conservation. Proper recycling of waste
materials need to be done in cities.
Urbanization effect on farm sector
• More than 50 per cent of medium and large farmers had allotted
land for construction of shops and other commercial uses on the
• Small farmers sold out the land to meet their household and
• large farmers did sold the land because they could not manage
the land due to labour shortage.
• Unavailability of labour for farm sector.
• High wage rate for farm work.
• The per capita availability of land declined.
Table 3 :Land per capita available in India
Year Per capita land available
1960-61 1.124 ha
2000-01 0.74 ha
2011-12 0.36 ha
• Air Pollution :-Transportation, Industries and Domestic air
• Water pollution:-Domestic sewage and Industrial effluent.
• Noise pollution :- Industrial, Aircraft, Transportation and diesel
Effect of urbanization on environment
• Plastic waste is regulated through Plastic Manufacture, sale and
usage Rules,1999 and also by Municipal Solid Waste Rules, 2000.
• Mercury Waste :-medical appliances, switches, lights and
thermal power stations.
• Biomedical Waste sources: hospitals and health care.
Effect of urbanization
• Water supply and sanitation
• Inadequate provision for social infrastructure
India is one of the developing economy need more money to
develop the infrastructure facility in urban areas and need
improvement in funding, governance, planning, and policy
framing areas. Urbanization need for an economic growth of the
country, but adversely affect on agricultural production and the
1. Case study:-India’s urban awakening, Building inclusive cities,
sustaining economic growth By Mckinsey Global Institute (2009)
2. Urbanization and Spatial Patterns of Internal Migration in India
by S Chandrasekhar and Ajay Sharma Indira Gandhi Institute of
Development Research, Mumbai (2014)
4.en.wikipedia.org/wiki/Urbanization in India