MODULE : I :

CITIES AS ENGINES OF GROWTH

SREELAKSHMI CJ [Link] [Link]

Urban growth & systems of cities

• Cities as engines of growth,

• cities as ecosystems,
• resources in cities.
• Growth of metropolitan and mega cities –
– scale,
– complexity and
– its impact on national development.
 • Settlement is a place where people live and interact with each other through
various activities.
• It is basically an occupancy unit, comprising of the grouping and arrangement of
two basic elements viz., houses and roads.
• It is a concrete expression of the changing relationship between man and
environment.
• It is a space-bound social organization, varying from an isolated house or a rural
hamlet to a metropolis/megacity and responding variously to environment,
economic, cultural, technological and historical condition.

SETTLEMENT
 The pattern of human settlement is practically influenced by –

• Physical Factors: Relief, Climate, Soil and availability of water

• Cultural and Ethnic Factors: Social Structure, Caste and Religion
• Security Factor: Defense against theft, robberies etc.

Factors affecting the establishment of Human Settlement

Settlements are divided into two broad
categories:
1. Rural Settlement: Rural
settlements are those where people
are mostly engaged in primary 1. Minimum population : 5000
economic activities (agriculture,
2. at least 75% of the population must be
mining, lumbering etc.)
involved in non-agricultural activities for a
2. Urban settlement: Urban settlement
settlements are those where people
3. Population density : at least 400 people/km²
are mostly engaged in non-
agricultural activities (secondary and
tertiary economic activities).

Criteria for a settlement to be called

Types of Settlement urban in India | Census India
 • Minimum population : 5000
• at least 75% of the population must be involved in non-agricultural activities for
a settlement
• Population density must be at least 400 people per sq km

Criteria for a settlement to be called urban in India as per Census India

 Small Town 5,000 – 49,999

Medium Town 50,000 – 4,99,999

Large City 5,00,000 – 9,99,999

Metropolitan City 10,00,000 – 99,99,999

Megapolis More than 1,00,00,000

Classification based on Demography

 Sub Category Population Range Governing Authority No: of cities as per 2011

Small Town 1 5,000 – 19,999

Nagar Panchayat

Small Town 2 20,000 – 49,999 Nagar Panchayat/

7467
Municipal Council
Medium Town 1 50,000 – 99,999
Municipal Council

Medium Town 2 1,00,000 – 4,99,999

Municipal Council 372

Large City 5,00,000 – 9,99,999

Municipal Corporation 43

Metropolitan City 1 10,00,000 – 49,99,999

45
Municipal Corporation/
Metropolitan City 2 50,00,000 – 99,99,999
Metropolitan Planning 5
Committee
Megapolis More than 1,00,00,000
3

Classification based on Demography

Hierarchy based on Demography
 32 % GDP

Hierarchy based on Demography

The regional patterns of economy and urbanization are heavily influenced
by these large cities, as they are India’s engines of growth and its magnets,
attracting people from the adjoining rural areas, small and medium towns, and from
comparatively regressive regions.

Growth of metropolitan and mega cities | impact on national development.

cities as engines of growth
Urbanisation is the key to city growth
 1. Pre- industrial society:

When production was predominantly

agricultural in preindustrial society, it
occurred outside the cities.

2. Industrial Revolution:
This pattern got reversed as the industrial revolution
progressed—manufacturing production emerged
as the major activity occurring in inner city areas.

3. Post industrial Revolution:

In the post-industrial era, this pattern again changed, with production base
largely moving to the metropolitan periphery and beyond (Brotchie et al. 1985).
This pattern of change tends to expand the city limits and adds
substantially to the contribution made by cities to the total
production (also see Norman et al. 2006; Levinson and Chen 2007; Rastogi 2010).

Pattern of development in cities

Some of the main factors that have led to growth of cities are:
(i) Surplus Resources
(ii) Industrialization and Commercialization
(iii) Development of Transport and Communication
(iv) Economic Pull of the City
(v) Educational and Recreational Facilities.
(vi) Employment opportunities
(vii) Higher standard of living
(viii) Social benefits and services, etc

Factors influencing Growth of Cities around the World:

Impacts of city growth
Impacts of city growth
• India’s cities will have to play a critical role for the country to become a global economic
powerhouse
• India is one of the fastest growing economies in the world. Number of inhabitants
in Indian cities

500
• aspiring to become a 460 million

Urban Population
– US$5 trillion economy by 2026 and 400

300
– US$40 trillion by 2047, when India marks
100 years since its independence. 200

• Urbanization playing a critical to this.

109 million
100

0
1970 2018
year

India to become Global economic power

• The number of city inhabitants in Indian cities is estimated to have increased almost fourfold
– 1970 and 2018, from 109 million to 460 million.

1000 • Being second-

900 876 largest urban
50 % of total
Urban population (in millions)

800 community in the

population world, the country
700
is expected to add
600
another 416
500 460
million people to
400
its cities by 2050
300 and have an urban
200 share of
109
100 population of 50
0 percent.
1970 2018 2050
Year

India to become Global economic power

Cities as Economic Engines
Cities are the loci of economic growth & innovation

• Cities are the loci of economic growth and innovation, where productive
firms, better-paying jobs, and key institutions are located

• By enabling firms and workers to interact closely, cities generate increases in productivity through
several channels, collectively known as agglomeration economies.

• A key implication of the theory is that firms in larger and/or denser cities should be more productive,
pay workers higher nominal wages and salaries, and engage more in innovative activities.

• Consistent with this, the data strongly suggests that agglomeration economies are very much present in India.
• Urban India’s contribution to the GDP increased from 47 per cent in 1981 and is expected to reach 75 per cent in
2020. Urban land is expected to house over 800 million people by 2050 and emerging cities are termed as the
“engines of future growth”.
• The number of Census towns in India increased from 1362 to 3894 between 1961 and 2011; a 186% increase.
Cities as Economic Engines | Urbanisation
• The total area of all classes of Towns and Cities increased from 38509.28 square kilometers
in 1961 to 78199.66 square kilometers in 2001.

• percent urban population has increased from 11% in 1901 to 31% in 2011,
• Rural population has shown the gradual decrease from 89% to around 69% over a
century.
• Metropolitan cities shared 18.9 percent population in total urban population in 1951, and
this share increased 42.3 percent in 2011.
1. Land area & GDP : Cities in India occupy just 3.0% of the nation’s land, but their contribution to
gross domestic product (GDP) is a massive 60.0% . Analysis of estimated district GDP
reveals that each percentage point increase in a district’s urban population share is associated with
a 2.7% increase in district GDP.

2. R&D : Firms in India’s larger cities contribute more to the GDP than their counterparts in smaller
cities.
1. introduce product and process innovations
2. conduct research and development more often than their counterparts in smaller cities.
(econometric analysis suggests that firms in a city twice as large as another are more likely to
engage by 17.5% in product innovation, 9.9% in process innovation, and 21.2% in research and
development)

Agglomeration economies in India.

3. Analysis of India’s Periodic Labour Force Survey, 2018–2019 shows that even after controlling for age,
gender, educational attainment, worker type (i.e., regular versus casual), and industry and occupation of
employment, full-time wage and salaried workers in cities with 1.5 million or more residents in
2011 had, on average, 16% higher monthly earnings than their counterparts in
smaller cities
and about 36% higher than counterparts in rural areas.
4. Manufacturing and modern services, i.e., sectors that are critical enablers of economic dynamism, account
for a larger share of employment in larger cities, i.e.,48% as compared with 38% for smaller
cities and 18% for rural areas.

5. Larger cities tend to have a higher share of regular workers among the category of wage
and salaried workers in larger cities as compared with smaller ones (91.2% versus 78.8%).

Agglomeration economies in India.

CITIES ARE COMPLEX
City is Complex
City as Ecosystem
City as Ecosystem
City as Ecosystem
Role in National Development
Role in National Development
Cities | Role in National Development
Role in National Development
Role in National Development
Role in National Development
Role in National Development
Role in National Development
India is the largest lower-middle-income country, accounting for almost 18% of the
world’s population.

Role in National Development

Role in National Development
Role in National Development
Role in National Development
Role in National Development
Role in National Development
Role in National Development
Thank you…