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1.

INTRODUCTION:
The father of our nation, Mahatma Gandhi, once said that the villages were the heart of our country. But with the advent of globalization the pulse of our fast growing economy runs through the cities. In the early eighties and nineties, if you had asked a wayfarer the names of major Indian cities, his answer would have been: Delhi, Bombay, Madras & Calcutta. However with the turn of the millennium the answer has expanded to include new names. With the arrival of the IT, cities have turned into a fast multiplying species. The growing gulf between the rich & the poor has now turned into the gulf between the city dwellers & the rural immigrants.

1.1. URBAN SECTOR:
An urban area is characterized by higher population density and vast human features in comparison to areas surrounding it. Urban areas may be cities, towns or conurbations, but the term is not commonly extended to rural settlements such as villages and hamlets. Urban areas are created and further developed by the process of urbanization. Measuring the extent of an urban area helps in analysing population density and urban sprawl, and in determining urban and rural populations. The level of urbanization is an index of transformation from traditional to modern one. It an established generalisation that an increase in urbanisation which boosts the secondary sector and reduces the dependence on primary sector is considered as a symbol of economic growth and development. Urbanisation is an integral part of economic development. Any increase in urbanisation is welcome. Most modern economic activity takes place in cities, and growth in productivity and income is easier in an urban context. Economics growth influences the urbanisation while urbanisation in turn affects the rate of economic growth.

1.2 RURAL SECTOR:
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Rural areas or the country or countryside are areas that are not urbanized, though when large areas are described, country towns and smaller cities will be included. They have a low population density, and typically much of the land is devoted to agriculture. The degree to which areas of wilderness are included in the term varies; very large wilderness areas are not likely to be described by the term in most contexts. In most parts of the world rural areas have been declining since the 19th century or earlier, both as a proportion of land area, and in terms of the proportion of the population living in them. Urbanization encroaches on rural land, and the mechanization of agriculture has reduced the number of workers needed to work the land, while alternative employment is typically easier to obtain in cities. In parts of the developed world urban sprawl has greatly reduced the areas that can be called rural, and land use planning measures are used to protect the character of rural areas in various ways.

2. Objectives:
The main objectives of our study are to • •

Study the basic aspects of Urban and Rural sectors. Comparative study of rural and urban sector growth. Suggest some measures for promoting better urban-rural linkages.
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Methodology:
We have adopted a secondary study methodology for carrying out this study. We studied the definitions of rural and urban sectors and their basic characteristics. We then studied the pros and cons of each. Then we have seen the reasons for migration from rural areas to urban sector. We have chosen the current trends in India as a case study in which we studied the current trends of urbanization in India. We then focussed a little on the International scenario. A comparative study of growth in rural sector and urban sector was followed. We then concluded by suggesting some policy measures to be taken by the government for promoting better rural-urban linkages.

3. Urbanization: pros and cons
Urbanization has played an important role in the development of under developed and developing countries. It is believed that the developed countries of the world could achieve fast economic progress due to large scale urbanization. Urbanization during the industrial revolution helped fast development of some European countries. However, the environmental challenges of urbanization have been quite difficult to deal with. Before we know more about the challenges of urbanization, let us know about its advantages in detail.

3.1Advantages of Urbanization
Urbanization is a process in which overall development of a particular region takes place. • Industrial growth:
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As the industries of the world are growing fast, urbanisation is proceeding so rapidly that it is generating a wide range of employment. New investments in various industries and this in turn help to create large scale employment which is much needed in developing countries. Due to employment, the per capita income of the people rises and the region achieves prosperity. Urbanization provides plenty of opportunities for people from all sections of society to excel and achieve their goals. Many factories are built in urban areas since economic benefit was the sole purpose of the urbanisation from the beginning, which will benefit to local economy, which goes to the wealth of government. Then the government find another place to develop. • Technical growth: The major advantage of urbanization will be technical progression and there by developing scientific attitude of the people .The result of technical advancement is mechanisation that increases the countries’ output.

Major per cent of country’s GDP comes from urban sector. For example if we consider India’s GDP in the year 2008-09, it was 3339375cr (taking

base year as 99-00) out of which urban contribution was 2221347cr i.e. nearly 66%. As many investments were favoured towards urban sector, many facilities are available in many cities and thus favouring factor for people to migrate from rural to urban areas.

Infrastructure: Urban infrastructure is a physical or structural part of the city that include its

transportation systems (roads, bridges, highways, public transportation, etc.), sewage system, utility systems (gas, electricity, water treatment and delivery), and its buildings (schools, court houses, sports facilities, and its public and private housing developments). Urbanization provides better infrastructure facilities, medical facilities and educational opportunities to millions of people .The overall standard of living of the people rises considerably because of urbanization. It helps the region to prosper and cater to the needs of a large population. The well-developed schools and universities in the urban areas lead to increase in literacy rate of population and thereby increase in skills of the labour. For example literacy rate of India was 84.97% while urban literacy rate was 74.04%.

Health care facilities:

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provincial and national levels developed simultaneously with voluntary. It has been observed that industrialization and urbanization leads to an increase in the population of the region at a very fast pace. ➢ Leprosy control programme. It also puts a tremendous strain on the finances of the country. Water and Transport Problems: Page | 2 . The population growth results in a situation where the facilities provided by the government are to be shared among many people. This can further give rise to inequitable distribution of wealth and resources. Sanitation. private and philanthropic institutions. 3. For example: In India. Some of the policies are: ➢ Universal Immunization Programme (UIP) is an important step towards achieving the goal of Health for All. Population Explosion: Population explosion means a great rise in the population of a particular area over a period of time.2 Challenges of Urbanization Environmental pollution and Degradation: Pollution and degradation of the environment is one of the most prominent challenges of urbanization. ➢ Urban Malaria Scheme : The main objective of the scheme is to control malaria transmission by eliminating aquatic stages of vector mosquitoes by weekly application of larvicides in breeding sources. money and intellect. These types of pollution can cause adverse effects on the health and well being of people. Contamination of sea. They also became the first places to experiment with ideas. river and lake water due to various human activities is also a serious issue resulting out of fast urbanization. Land pollution is also a matter of great concern. The increased number of vehicles on the roads and industrial wastes are the main sources of air pollution. As a result. Urbanization also leads to a rise in the noise pollution levels. Providing the huge population with essential resources becomes a big challenge due to population explosion. ➢ National Filarial Control programme .Urban areas continued to develop being the seats of power. there are well-developed health care facilities available in urban sector because of the government’s various health care programmes. various agencies of health representing municipal.

The common man in the urban areas suffers the most because of the rise in criminal activities.The rise in the number of vehicles puts a huge strain on the infrastructure available for transport such as roads and railways. The rise in the number of crimes is due to the need to earn wealth which results in people resorting to unfair means. Inequalities in the distribution of wealth which widens the gap between the rich and the poor is also a serious problem to deal with. Surveys conducted suggest that the crime rate is much higher in urban cities as compared to backward regions. Keeping the cities clean and well maintained is surely one of the biggest challenges of urbanization. Rising Cost of Living and Wealth Inequality: The cost of living in urban cities is quite high compelling many people to live in poverty. The lack of space for construction of houses and buildings results in deforestation which causes several environmental problems. Increase in Crime: one of the biggest challenges of urbanization is the increase in the crime rate. The problem of slums in urban cities is becoming more and more difficult to tackle due to the issue of displacement that the huge population residing in these slums will face. Page | 2 . Housing: Providing shelter to a big population is indeed a big challenge posed by urbanization. Water problems are quite common in many parts of urban cities.

○ At least 75 per cent of the male main workers engaged in non-agricultural pursuits. the last three categories namely towns having population 10. For the first time since Independence. While the first size-class comprises cities i.1Demographic trends: In India.81% in 2001 Census to 31. places having population less than 5000. In each census.4. and less than 5000 are grouped together and termed as small towns. The census of India defined the urban places on the basis of the following criteria (Census of India 2001). (known as Statutory Town) All other places which satisfied the following criteria (known as Census Town): ○ A minimum population of 5. the rural-urban framework is prepared based on the above definition of urban.16%. cantonment board or notified town area committee.e.84% & 31. Urban population is usually presented in six-fold classification in Indian censuses.000. It is important to note that the comparison of the level of urbanisation at the world level is affected by definition of urban areas followed in each country. corporation. Many new towns are added and some existing towns revert to rural status if they do not satisfy the criteria. Medium Page | 3 . and ○ A density of population of at least 400 per sq.999. urban places having 100 thousand and more population.. km. the definition of urban is more rigorous.e.000-19. etc. In order to provide a meaningful analysis of the changes in size-class composition of urban population. 5000-9999. the level of urbanisation is measured by the percentage of population living in urban areas. the last category consists of the tiny towns i. • • All places with a municipality. Both civic status as well as demographic criteria is taken for declaring a settlement urban. Level of urbanization increased from 27. Urbanization trends in India 4. Thus the rural-urban classification used in India is a dynamic process.16% in 2011 Census. the absolute increase in population is more in urban areas that in rural areas. Urbanization trend: Demographically speaking. According to the 2011 census Rural – Urban distribution: 68..

1 million comprising 31.999. But it cannot be sustained very long. and every town and cities has to experience decline. which increased to 377. cities having population 1 million and more are termed as million plus cities. The size of town and city is a negatively related to urban growth rates.14 per cent) and there was subsequent slowing down of urbanisation.84 per cent of India’s population in 1901. The continuous increase in size cannot be sustained in the long run. The places having more than 100 thousand population are named as cities. The decline in growth rate will certainly set in with increase in the size of city in the long run.000 to 49. but the threshold of decline could vary enormously and not easy to predict.000 to 99. Hence. It is quite natural that as city grows it expands the economic base and activities of the cities leading to increased advantage to the trade and commerce as well as to industries from the agglomeration economy. and large towns constitute population in the range of 50.9 million constituting 10. The urban population in India at the beginning of 20th century was only 25. The growth rate was highest observed during 1971-81 (46.towns are defined to have population in between 20.999.2 per cent of total population in 2011. effort to restrict city size is not always necessary and it could even be detrimental to the economic growth at the early stages of Page | 2 . On the other hand.

An entirely new class of entrepreneurs have come up with the support system from the Page | 2 . In fact.1 Industrial growth in India: India has made considerable economic progress since its Independence. The growth of small towns might be due to higher natural increase among them as they are not very different from villages. Therefore. Modern management techniques were introduced. cities should be allowed to grow naturally in order to reap the benefits of its growth momentum. Industrial investment took place in a large variety of new industries. which have more benefited the cities compared with towns. Further. The cost of living in cities as well as metros has also risen enormously along with saturation of informal sector and decline in jobs in organized sectors (Kundu 1997. New technologies were introduced in many industries. Most noticeable are the expansion and diversification of production both in industry and agriculture. Planning Commission 2001). 4. the rural poor have little choice but to migrate only to short distances with small and medium towns as their destinations. In such a situation migration to the nearby towns is an alternate possibility left to the rural poor. the optimality of city size is elusive and each city could find its own in due course of time. This decreasing trend can be seen in the following graph This is consistent with forces of privatisation and liberalisation of the economy.economic development in a country (Mills and Becker (1986).

Government.9 in 1950-51 to 154. 4. A good number of institutions were promoted to help entrepreneurship development. Delhi and Kolkata have introduced Metro Rail system in their cities. Indian industry thrived within protective tariff walls.2Infrastructure development in India: The process of urbanization has gathered considerable momentum in recent years and this has put urban infrastructure and services under severe strain Urban transport: The major objective of urban transport initiative is to provide efficient and affordable public transport. is being implemented by the Delhi Metro Rail Corporation (DMRC). The Government also followed a policy of encouraging indigenous industries and provide them all facilities and encouragement. comfortable. import restrictions were removed. As a result. customs tariff was brought down and the doors of the Indian economy were opened for foreign competition.7 billion Kwh in the same period. A National Urban Transport Policy (NUTP) has been formulated with the objective of ensuring easily accessible. Electricity generation went up from 5. direct foreign investment in any corporate body was restricted to 40%. reliable and sustainable mobility for all. The index of industrial production has gone up from 7. communications. A variety of promotional policies were followed by the Government to achieve this success. Educational institutions: Page | 2 . provide finance for industry and to facilitate development of a variety of skills required by the industry as well as agriculture. In the early years. quick. and a large number of new industrial centres have developed in almost all parts of the country. we have now a widely diversified base of industry and an increased domestic production of a wide range of goods and services. the Government has built the infrastructure required by the industry and made massive investments to provide the much-needed facilities of power. affordable. In 1991. The policy was to encourage Indian industries and though foreign technical collaborations were encouraged. roads etc. a joint venture between the Government of India and the Govt. safe.1 billion Kwh to 480.of National Capital Territory of Delhi.7 in 1999-2000. this policy was changed completely and foreign majority investment was encouraged in a variety of industries. Over the years. Delhi Mass Rapid Transit System (MRTS).

after China and the United States. IISc. The higher education system of India is the third largest in the world. Development of education in India regards that free and compulsory education should be provided to all children up to the age of 14. NITs. ISI. All levels of education in India.Development of Education in India has independence of the country. 4. According to the 2011 Census. Literacy rate has increased from around 3% in 1880 to around 65% in 2001. Focus is to be on Page | 2 . JU.Jawaharlal Nehru Urban Renewal Mission Statement: The aim is to encourage reforms and fast track planned development of identified cities. from primary to higher education portray a challenge. IIMs. Moreover. the Literacy Rate is recorded to be around 74%. Some of them are as follows: ➢ Urban Development JNNURM --. Development attained new level essentially after the of education in India brought about a transformation and the concept of education got modified. and ISB. India got well-known educational institutions such as the IITs.4 Urban Policies: The government of India has introduced many policies for development of urban areas. AIIMS. the 86th Amendment of the Indian constitution makes education a fundamental right for all children aged 6-14 years. BITS.

It subsumed the erstwhile schemes of Integrated Development of Small and Medium Towns (IDSMT) and Accelerated Urban Water Supply Programme (AUWSP). 1961.Urban Infrastructure Development Scheme for Small and Medium Towns. Coverage: The scheme will apply to all cities/towns as per 2001 census. excepting cities/towns covered under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). community participation.2005 for improvement in urban infrastructure in towns and cities in a planned manner. the Government inserted a new clause (vii) in Section 10(15) of the Income Tax Act. (2) City-wide framework for planning and governance will be established and become operational (3) All urban residents will be able to obtain access to a basic level of urban services (4) Financially self-sustaining agencies for urban governance and service delivery will be established. it is expected that ULBs and parastatal agencies will have achieved the following: (1) Modern and transparent budgeting. through reforms to major revenue instruments (5) Local services and governance will be conducted in a manner that is transparent and accountable to citizens (6) E-governance applications will be introduced in core functions of ULBs/Parastatal resulting in reduced cost and time of service delivery process. Funds raised Page | 2 . TAX FREE MUNICIPAL BONDS: In 2000-01. exempting interest income from bonds issued by local authorities.efficiency in urban infrastructure and service delivery mechanisms. Introduction: Urban infrastructure Development Scheme for Small & Medium Towns was launched on 3. designed and adopted for all urban service and governance functions. financial management systems. Expected Outcomes of the JNNURM: On completion of the Mission period. accounting.12. and accountability of ULBs/ Parastatal agencies towards citizens. UIDSSMT --.

The project covers priority urban services viz. 2010 Bangalore Metro Railway GR. and vi. Gangtok (Sikkim).from Tax Free Municipal Bonds are to be used only for capital investments in urban infrastructure for providing one or more of the following:i. Agartala (Tripura). Urban Transport (if this is a municipal function under respective state legislation) Ministry of Urban Development has been designated as the nodal agency for processing applications for issue of tax free bonds. Bridges and Flyovers. Project Management and Capacity Development of the ULBs through institutional and financial reforms have also been included so that the ULBs become capable of planning and implementing infrastructure projects. Roads. ➢ Urban Water Supply and Sanitation • • • Service Level Benchmarks Public Private Partnership National Urban Sanitation Policy Delhi Metro Airport Express Line. Potable Water Supply ii. Aizawl (Mizoram). Sewerage or Sanitation iii. 2011 CMC and AFC System Metro Railway Act 2009 Funding of Buses under JNNURM SUTP -Sustainable Urban Transport Project ➢ Urban Transport • • • • • • • ➢ Local Self Government Page | 2 . (ii) Sewerage and Sanitation. Drainage iv. and (iii) Solid Waste Management. It covers capital cities of 5 North Eastern States viz. GR. Solid Waste Management v. NERUDP --. (i) Water Supply.North Eastern Region Urban Development Programme (NERUDP) The North Eastern Region Urban Development Programme (NERUDP) Phase-I is being implemented by the Ministry of Urban Development (MoUD) with the financial assistance from Asian Development Bank (ADB). In addition. 2011 Bangalore Metro (Opening of Public Carriage for Passengers) Rules. and Kohima (Nagaland).

Regional Centre for Urban and Environmental Studies SLB on E-Governance -----.Service Level Benchmarks Advisory on State Finance Commissions Centres of Excellences. 5. Page | 1 . Rural sector: pros and cons ➢ Rural is any territory that is not urban.• • • • • NUIS -.National Urban Information System RCUES --.

5.1 Advantages of rural sector: • • • • • More natural environments Better social/support network Less stressful environment Perceived as safer Class differences are not as distinctive Page | 2 .

2 Disadvantages of Rural Sector: •Illiteracy: The main cause of this is lack of proper educational facilities. •Lack of infrastructural facilities: •Limited transport available •Less immediately available social services •Slower social.The other occupations in rural sector also face the same problem. political progress 6. Even the health facilities provided by government are not efficient. Agriculture contributes nearly one-fifth of the gross domestic product in India. The main occupation in rural sector is agriculture which doesn’t provide much employment opportunities . which leaves rural sector lagging behind the urban sector. There are no proper hospitals with good infrastructure. There are no proper medical camps organized and no emergency facilities like 108 . etc. The available facilities provided by government schools are inefficient which made rural sector lagging in literacy compared to urban sector. Rural India The Rural Development in India is one of the most important factors for the growth of the Indian economy. •Lack of proper health facilities: Rural sector lags a lot in health facilities. •Limited employment opportunities: The employment opportunities are limited because of lack of industrial growth. There are no corporate schools in villages as in urban areas which provide better educational facilities. In order to increase the growth of Page | 1 .• Pollution free environment 5. India is primarily an agriculture-based country.

Agriculture. 76.874 crore in Ninth Plan Addressing the challenge of unemployment in the rural areas of the country is central to the development of rural sector for ameliorating the economic condition of the people. the Ministry of Rural Development accords foremost priority to development in rural areas and eradication of poverty and hunger from the face of rural India. the Government has planned several programs pertaining to Rural Development in India. Wage employment is provided in rural areas under National Rural Employment Guarantee Act (NREGA) and Sampoorna Grameen Rozgar Yojana (SGRY) whereas self-employment is provided under Swarnajayanti Gram Swarozgar Yojana (SGSY). Besides generating employment these wage employment schemes also ensure creation of durable assets in rural areas. A number of initiatives have been taken in the recent years for creation of social and economic infrastructure in rural areas to bridge the rural-urban divide as well as to provide food security and fulfil other basic needs of the rural populace. which for various reasons could not keep pace with urban areas in the past. Integrated development of rural areas is one of the abiding tasks before the Government of India. for improving the living conditions and its sustenance in the rural sector of India. regulations and acts pertaining to the development of the rural sector. The introduction of Bharat Nirman.agriculture. The National Common Minimum Programme (NCMP) of the Central government reiterates the cardinal importance of villages to the overall development of the country and commits to work towards development of rural areas. In conformity with this commitment of the Government. The Ministry of Rural Development in India is the apex body for formulating policies. handicrafts. Under Pradhan Mantri Gram Sadak Yojana (PMGSY) construction and repairing of rural roads are taken up to ensure rural connectivity. the allocation of funds for rural development programmes has been enhanced to Rs. For the Tenth Five Year Plan. Initiatives are also taken by the Ministry to build and upgrade the basic rural infrastructure through various schemes. fisheries. The renewed emphasis on rural development is also visible in the commensurate progressive increase in the allocation of resources for implementation of poverty alleviation programmes. and diary are the primary contributors to the rural business and economy. It is expected under the scheme that an expanded and Page | 2 . The National Rural Employment Guarantee Act 2005 was introduced by the Ministry of Rural Development.774 crore as against Rs. poultry. a project set about by the Government of India in collaboration with the State Governments and the Panchayat Raj Institutions is a major step towards the improvement of the rural sector. 42.

drinking water and sanitation schemes. better access to health. etc. •For the development to be in consonance with the people's wishes aspirations. schools. Connectivity is provided to all unconnected habitations through Pradhan Mantri GramSadak Yojana (PMGSY) and village infrastructure is also created through works undertaken under wage employment schemes. drinking water. as also social mobilization of rural poor through Self-Help Groups and Panchayati Raj Institutions.emphasis is put on participation of people. are provided under Indira Awaas Yojana (IAY). Accelerated Rural Water Supply Programme (ARWSP) and Total Sanitation Campaign (TSC) to enhance the welfare and well-being of the vulnerable sections of rural population. •Creating rural infrastructure for better economic opportunities and growth. •Guaranteeing wage employment and ensuring food security. This is sought to be achieved through the National Rural Employment Guarantee Act. This is done through watershed development programmes and initiating effective land reform measures for providing land to the landless rural poor. •Improving agricultural productivity in the rural areas. electrification etc. •Making rural people the arbiter of their own destiny and to provide for their economic uplift through promotion of self-employment. drinking water and toilets. water and clean environment through rural housing. To ensure rapid development. •Restoring lost or depleted productivity of the land. budgetary support for implementing the various rural development schemes has increased many fold over the years.renovated rural road network will lead to an increase in rural employment opportunities. Similarly basic amenities for housing.g. Rural Development (RD) programmes comprise of following: •Provision of basic infrastructure facilities in the rural areas e. education and other public services so as to accelerate the pace of economic growth in rural areas. roads. better access to regulated and fair market. Page | 2 .The Ministry provides shelter. Area Development is encouraged through Watershed Programmes to check the diminishing productivity of waste land and loss of natural resources. The aims of ministry of Rural Development are: •Bridging the rural-urban divide. health facilities. •Providing for dignified living .

The main objective of the scheme is to connect all the habitations with more than 500 individuals residing there. organizing self-help groups. development of infrastructure. •Implementing schemes for the promotion of rural industry. credit from banks. Its auxiliary objective is strengthening natural resource management through works that address causes of chronic poverty like drought. and subsidies. Swarnjayanti Gram Swarozgar Yojana (SGSY):This was implemented as a total package with all the characteristics of self-employment such as proper training. financial aid.•Provision of social services like health and education for socio-economic development. planning of activities. MGNREGA aims at enhancing livelihood security of households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in a Page | 2 . •Assistance to individual families and Self Help Groups (SHG) living below poverty line by providing productive resources through credit and subsidy.1 Rural Development policies Pradhan Mantri Gram Sadak Yojana (PMGSY): This is a scheme launched and fully sponsored by the Central Government of India. Indira Awaas Yojana (Rural Housing): This scheme puts emphasis on providing housing benefits all over the rural areas in the country Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): The primary objective of this act is augmenting wage employment. in the rural areas by the means of weather-proof paved roads. deforestation and soil erosion and so encourage sustainable development. Sampoorna Gramin Rozgar Yojana (SGRY): This scheme aims at increasing the food protection by the means of wage employment in the rural areas which are affected by the calamities after the appraisal of the state government and the appraisal is accepted by the Ministry of Agriculture. 6. increasing agriculture productivity. providing rural employment etc.

lack of proper equipment. poverty and hunger.financial year to every household whose adult members volunteer to do unskilled manual work. which is much lower than many Page | 3 . resources. Between 2001 and 2011. 6. present IMR in India is 52 deaths per 1000 live births and MMR is 230 per 100. HEALTH: In terms of health. private and corporate hospitals are blossoming in the cities. water and sanitation. villages in rural India still suffer from lack of proper health care services. The scheme will be implemented under the frame work of Public Private Partnership (PPP) between Gram Panchayats and Private Sector Partner. Though. paramedics. Once we probe deeper into issues related to health. industries and corporates. environmental problems. India ranks 63rd in poverty Index and its rank in the standard of living compared to that of 186 countries is 126. Mass migration is a phenomenon that is a consequence of various problems in the rural India. technicians and doctors are leaving most of these health centers in shams. Provision of Urban amenities in Rural Areas ( PURA): The objectives of the scheme are to provide livelihood opportunities and urban amenities in rural areas for bridging rural-urban divide and improving the quality of life. operation theatres. about an hour drive from any village. nearly 85 million people have migrated from the rural areas to elsewhere. education and employment. Services like 108 have been introduced in villages in case of emergency. namely: health. hunger and poverty stand tall in the list of factors affecting the health of people. There are umpteen number of reasons for this. mass migration from rural to urban areas has increased rapidly. Setting up public health centers (PHC) and community health centers (CHC) have solved a few problems in the villages. 000 live births according to WHO statistics. women and children. However.2 Reasons for migration: In a country with 600 million farmers. of which 40 percent are willing to quit farming for various reasons. India has one of the most neglected health care systems in the world. etc. India’s ranks among top five countries in the world with most number of HIV positive cases. but the patient will be driven in a van through roads which almost kill the person before reaching the PHC or the CHC which is mostly located in towns.

and therefore. Poverty line provides conceptual rationalization for looking at the poor as a ‘category’ to be taken care of. entire rural set-up is being destroyed. the schools in the cities demand high fee. Even the ones who are educated do not have jobs. Government schools in villages do not have enough teachers. In the name of environmental sustainability. Unemployment is another section one has to explore about. The government sees this as an achievement of its own. More than 320 million people go hungry to bed every day. 20 a day. what we also need to look at is water and sanitation problems.5% for males and 37. India has the largest share of illiterate women in the world.On the other hand. Even today. The Right To Education (RTE) act that came into force last year made it compulsory for every child to get free education between 6 to 14 years of age. what matters is the quality of education. impart better quality of education. Most of them among the 320 million hungry people are the ones who live on less than Rs. Depletion in ground water level and water pollution due to prevalence of toxics. In some schools. And if it is greater than 2100 calories a day. many die. Of these. ineffective access to law. low educational attainments.7% for females. Even environment is one of the most significant areas one has to talk about when it comes to rural to urban migration. EDUCATION: Education is another aspect one has to concentrate on. one teacher teaches many subjects irrespective of whether she knows the subject or not.other developing countries. The government calls a family as below poverty line (BPL) family if a person consumes less than 2100 calories a day. Page | 2 . powerlessness in civil society and caste and gender based disadvantages. They are infected with various diseases because of sanitation problems. Forty million people in India are unemployed. The poor do not have enough money to send their kids to the school . However. Apart from food security. sewage and other pollutants is also a trouble. The literacy rate is 65. many suffer from various diseases. geographical isolation. It does not take into account important aspects of poverty such as ill health. it is an above poverty line (APL) family. many people in the rural areas walk 10 kilometers or more to get water from the nearest drinking water sources.

there is migration from rural to urban areas. the government in the name of development is destroying people’s lives and depriving them of basic rights they are entitled to. A report on farmer suicides stated that the past six years recorded the worst number i. 7. In the name of Special Economic Zones (SEZs).In this whole process. soil erosion and many other aspects have taken a toll on the lives of people in rural areas. International scenario Page | 3 . but the crop fails and the farmers cannot save some of it for their next cultivation. But. This deprivation leads to mass migration and therefore. the migration rate has increased rapidly. Many farmers think they would produce high yield. infertile soil. pesticides are sprayed which make the pests immune to them. generating income through agriculture.AGRICULTURE: Farming has been major occupation in India. All the above mentioned factors are better off in the cities in terms of facilities. With this came food crisis. Apart from this. The land that is grabbed from the poor people is resource rich and income-generating one . ecosystem people are converted into ecological refugees . their homes demolished and they are asked to leave the place. producing food for the country and now. For Example: GM crops are being distributed in market.For several years. allergens. in the name of development. often damaging the crop. After all every person has the right to live a dignified life. these people have lived on those lands. 200. What one needs to understand is that. less rainfall or floods or drought. promising to rehabilitate the displaced ones.036 farmer suicides.000 farmers’ deaths were reported. 17. the government has been on a land grabbing spree. food is snatched away from them. weeds affect crops and weedicides. So.e. infrastructure and basic amenities. food inflation and “agrarian crisis” as if they are new schemes introduced in the country. in the past decade. Crop failure due to the entry of GM crops.

Rural. to 49% (3. According to the UN State of the World Population 2007 report. this is referred to as the arrival of the "Urban Millennium" or the 'tipping point'.As more and more people leave villages and farms to live in cities. for the first time in history. but Bocquier sees many of them likely to leave upon discovering that there’s no work for them and no place to live. Percentage of World Population: Urban vs. This kind of growth is especially commonplace in countries. with 80% of urban growth occurring in Asia and Africa. writing in THE FUTURIST magazine. This growth can also be attributed to new job opportunities. sometime in the middle of 2007. substantially less than the 60% forecast by the United Nations (UN).9 billion) by 2030. Page | 2 . urban growth results. The same report projected that the figure is likely to rise to 60% (4.2 billion) in 2005.” Both Bocquier and the UN see more people flocking to cities. In regard to future trends. The rapid growth of cities like Chicago in the late 19th century and Mumbai a century later can be attributed largely to rural-urban migration. to 29% (732 million) in 1950. However. The rapid urbanization of the world’s population over the twentieth century is described in the 2005 Revision of the UN World Urbanization Prospects report. French economist Philippe Bocquier. has calculated that: "the proportion of the world population living in cities and towns in the year 2030 would be roughly 50%. because the messiness of rapid urbanization is unsustainable. The global proportion of urban population rose dramatically from 13% (220 million) in 1900. the majority of people worldwide will be living in towns or cities. it is estimated 93% of urban growth will occur in developing nations.

 Urbanization in the United States never reached the Rocky Mountains in locations such as Jackson Hole. since much less of the population is living in a rural area. as has the coast of Florida. 8. AL area. Colorado and Aspen. India. Importance of Rural-Urban Linkages : Page | 2 . but a far slower annual urbanization rate. Colorado. Douglas County. the Pacific Northwest and the barrier islands of North Carolina. New Mexico. Wyoming. Then we will argue about the existence of disparities between these two sectors in Indian economy followed by the causes for the existence of such disparities. Taos.Urbanization rates vary between countries.  In the United Kingdom. The state of Vermont has also been affected. These two towns show some of the quickest growth rates in Europe. Wiltshire and Milton Keynes. Comparative Study on Rural and Urban Growth: In this section we will present a comparative study on the growth in Rural Sector with the growth in the Urban Sector. The United States and United Kingdom have a far higher urbanization level than China. This section ends with a focus on the extent to which these disparities are present in Indian Economy. the Birmingham-Jefferson County. Telluride. Swaziland or Niger. We will first show the importance of rural-urban linkages for the overall growth of an economy. This section is organized as follows. Colorado. Buckinghamshire. two major examples of new urbanization can be seen in Swindon.

inducing further mechanization or other innovations relevant to agricultural production.g. Likewise. banks. This process of moving from disequilibrium to equilibrium due to technological innovations in both sectors is the major source of economic growth and development. urban areas are linked to the rural For example. agricultural productivity grows. such as markets and employment opportunities. hospitals. and socially. Economic theory suggests that resources should move freely so that marginal returns are equalized between sectors and regions.These linkages matter because rural and urban livelihoods are interconnected economically. Urban consumers. narrowing the productivity and income gaps between rural and urban areas. A new equilibrium emerges. distorting capital and labor markets to favor urban over rural areas. In the meantime. But many developing countries disrupt this natural economic development process.. in an attempt to jumpstart development or leapfrog this Page | 2 . Rural households also depend on urban centers or small towns for various services (e. The rural sector can also act as a buffer from the impact of macroeconomic shocks on the urban economy by providing labor when the urban economy flourishes and absorbing labor back in times of economic contraction. many poor urban households partly depend on rural activities (e. Development policies that facilitate these rural-urban linkages can promote economic growth and poverty reduction. benefit from cheap and sustained food supply from rural areas. From a rural perspective. financially. urban labor productivity and wages rise.g. Furthermore. making migration from the rural to urban sector attractive. Links between the rural and urban sectors also include flows of information. As a result. as well as flows of people moving between rural and urban centers on a temporary or permanent basis. on the other hand. Very often governments interfere in favor of the urban sector. They also rely on rural areas for the supply of raw materials.. urban development may also improve access to capital. and government offices) and for the provision of various private and public goods. various urban businesses and enterprises depend on rural demand for their goods and services. But as new innovations take place in the urban sector. most farmers depend on urban markets to secure their livelihoods. Rural labor begins to migrate to the urban sector. An increase in agricultural productivity may precede the growth of urban settlements. and capital moves to rural areas. farming) for their livelihoods. When innovations take place again in the urban sector the gap in productivity and income widens between the two sectors.

governments’ tendencies to favor urban centers are reflected in their spending policies.e. price policies. per capita income. health. nutrition. public spending endeavors to promote more equitable development and increase efficiency by correcting market failures. and welfare transfers that favor the urban over the rural population. Rural-Urban Dynamics: A Historical Perspective in India: Page | 3 .process. the larger is the bias. overall efficiency is lost. First. The greater the gaps among these indicators.. such as education. The consequences of urban-biased policies are obvious. Second. price policies). and poverty. Like other government policies. these policies leadto larger gaps between rural and urban areas in terms of many development indicators. but frequently agricultural products in particular. Naturally. as well as in urban areas. Rural-Urban divide in India: For India. is circumvented. public investment. As a result. Third. for example. Such preferential practices may include. and poverty rates. The first and most common one relates to policies affecting the terms of trade (i. As a consequence. and the natural growth that would occur in rural areas. This rural-urban divide evolves when governments in developing countries give preference to the urban sector in their public policies. the rural-urban gap increases. adversely affecting all traded goods. as resources do not flow to their “freemarket” locations where they would naturally earn the highest rate of return. overvalued exchange rates in most developing countries exacerbate this bias. with levels that are much lower than those that would result from a free market situation or in the international market. per capita income and productivity differences have to be adjusted by labor quality and cost of living in the two sectors. In part this urban bias may also occur because urban centers in developing countries may be better organized politically and thus have greater influence on policy makers than the rural population. We see the effect of urban bias in the gap between urban and rural areas in terms of labor productivity. urban bias has usually arisen from the combination of three different but related policies. Very often agricultural outputs are underpriced. per capita income.

which helped the success of India’s Green Revolution. foreign trade. The government concerned itself with controlling the price of food grains because the relative price of food grains was thought to be an important determinant of savings and investment rates. Higher per capita incomes—which grew at 4. Emphasis was also given to the development of small-scale industries in rural areas. India’s government began to prioritize the development of the agricultural sector. These improvements had a significant impact on food demand. the reforms adopted between 1991 and 1993 resulted in rapid economic growth and therefore to a rise in per capita income. including subsidized loans to promote the development of rural industries. decreased thereafter to 20-25 percent as India formally adopted the socialist strategy of heavy industrialization during the Second Five Year Plan (1956-61).5 per cent per annum in the early 1990s compared to 3. they affected agriculture in at least two important ways. Beginning in 1991. various agricultural price support mechanisms and input subsidies were introduced. India adopted a series of sweeping macroeconomic and structural reforms in non-agricultural sectors including industry. Rural outlays.6 Page | 2 . and investments. But the urban sector profited most from the PDS. After the mid-1960s. [It was thought that high food grain prices would discourage investment in the industrial sector as they would increase pressure to raise wages. Under this strategy. Various measures were adopted. In order to provide cheap food and cheap basic inputs for industrial development. This development strategy required a substantial amount of investment in urban industries from the state at the expense of the agricultural sector. the newly independent India emphasized self-reliance and gave priority to rapid industrialization. exchange rate. which started as a rationing system in the 1940s. agricultural policy was infused with a pro-urban bias. farm prices were kept artificially low and agricultural exports were curtailed through quantitative restrictions and an overvalued exchange rate. Moreover. An important element of India’s food policy and food security system is the Public Distribution System (PDS). Although the reforms were implemented in the nonfarm sector. The first Five-Year Plan (1951-56) allocated 31 percent of the budget to the agricultural sector. The PDS aimed at “protecting low-income groups from increases in retail prices by purchasing grain from farmers (at the support price) and selling it to consumers at subsidized prices”. The government adopted an agricultural strategy aimed at improving productivity in the agricultural sector. which would in turn increase labor costs and consequently decrease profits ]. Under this strategy. basic food products were made available at subsidized prices in urban areas and food deficit regions.During the first three Five-Year Plan periods (1951-1966). however. First.

Likewise. These industries also benefit from exemptions from custom duties and corporate income taxes. subsidies. milk. Gujarat and Maharashtra.The improved TOT for agriculture resulted in an increase in the profitability of the primary sector relative to industry. subsidies have been redirected away from rural areas towards urban industrial centres. These private investments were increasingly directed to horticulture. Despite these improvements. even after adjusting for cost-of-living differences. and poultry. Political intervention and economic forces. A similar disparity exists between urban and rural areas in terms of literacy. only 20 per cent of the health subsidies are directed towards this sector. private investments in agriculture rose substantially and are now double the amount invested by the public sector. for example.2 between 1991 and 2000. fish. These changes in demand led to a remarkable growth in the production of these high-value commodities during the 1990s relative to the previous decade. government subsidies are directed mainly towards high-skilled industries such as the software sector. Typically urban populations have better access to schools and also enjoy better quality education. Even more disturbingly. for example. poultry. and dairy products from a rising middle class. as the domestic Terms of Trade (TOT) between agricultural and industrial prices improved during the 1990s. as well as government policies. Overall expenditures on social services have declined under the SAPs in relative terms. government fiscal and investment policy is still oriented towards the urban areas. as well as meat. Page | 3 . As a result. As a result of this urban bias in policies. the focus of government policies. The TOT rose from 0. and egg production. received 37 per cent of industrial investments between 1991 and 1994 and within these two states a large share of the investment was concentrated near the large city of Mumbai. While the rural sector is home to about 65 per cent of the Indian population. government subsidies in the health sector tend to favour urban areas while the provision of basic health services in rural areas is still lacking. and fiscal incentives has shifted away from agriculture towards industry under the SAPs. in response to booming consumer demand for these high-value agricultural products. have been identified as the sources of the skewed distribution of health-care services in favour of the urban sector. the decrease in industrial protection significantly enhanced the incentive framework for the sector.per cent in the 1980s —led to the diversification of food demand for non-food grain crops such as fruits and vegetables. For example. Moreover. New investments under the Structural Adjustment Policies (SAPs) privileged mostly urban areas as well as more prosperous regions. an income gap also exists between rural and urban residents in India.9 to 1. Second.

4. Empirical Evidences of Rural-Urban dsiparities in INDIA : 8.1 GDP: The contribution of rural urban sectors in the GDP of India in the Post-Independent era evaluated at constant Prices of 1999-00 are as shown : GDP of India showing the Rural and Urban Contributions: Year 1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 GDP (at 99-00prices) (in Crores Rs.5-1. and gradually increased to 1.In 1951.) 224097 32856 6 473592 67803 3 1083572 1864300 Rural Contribution 147058 20839 3 27771 4 365299 530886 77256 Urban Contribution 77039 12017 3 195878 312734 552686 1091737 Page | 4 . But the ratio has stayed at 1. the ratio of urban to rural per capita mean income was 1.4 during 1966-69 due to the adoption of new technologies and greater agricultural production during this initial stage of the Green Revolution.6 since then.7 during 1954-55.6-1.3-1. It then declined to a historic low of 1.

The report also indicates that in Southern Asia. is on track to cut poverty in half by the 2015 target date The Rural-Urban disparities are clearly reflected in this aspect also. with the nation estimated to have a third of the world's poor.6% of the total Indian population falls below the international poverty line of US$ 1.25 a day (PPP.3 2008-09 3339375 1118028 2221347 Note: GDP is measured at constant prices of 1999-2000. where the poverty rate is projected to fall from 51% in 1990 to about 22% in 2015. According to a new UN Millennium Development Goals Report. 41. as many as 320 million people in India and China are expected to come out of extreme poverty in the next four years.3 in rural areas). Page | 2 .2 Poverty Levels: Poverty is widespread in India. According to a 2005 World Bank estimate. while India's poverty rate is projected to drop to 22% in 2015. in nominal terms 21. however. Graph showing the Rural and Urban contributions to GDP of India : The increasing share of Urban Sector Contribution to GDP and the decreasing contribution of Rural Sector : 8. only India. But the positive sign is thet the disparity in terms of Poverty seems to be coming down.6 a day in urban areas and 14.

71 and INR1984/USD44. NSSO survey brings India’s deep urban-rural divide into focus : The survey estimated average MPCE in 2009-10 to be INR1054/USD23. income).3 Per-Capita Income: The NSSO survey on household consumer Expenditure assumes heightened significance as India relies on it to measure income growth across the country. the prevalence of the deep urban-rural divide in terms of consumption spending (and hence.8. The survey brings to light.63 in rural India and urban India respectively implying per capita Page | 2 . in the absence of an official income survey.

the flip side of Maharashtra’s successful urban story is that the state also had the greatest urban-rural divide with urban MPCE being 110% of rural MPCE. are Chhattisgarh.expenditure level of the urban population was on an average 88% higher than the rural counterpart. Other examples of states where urban MPCE was double that of rural MPCE. Urban-rural disparity is accentuated at the state level: Ironically. As the development process in the state is rooted in agricultural sector in the wake of green revolution unlike other states. The state of Punjab showed a very balanced pattern of urban growth across the size categories of towns and cities in the state. the urban-rural disparity (106%) was one of the greatest.21) were below the corresponding national averages and on the other. The growth rates in both have picked up Page | 3 . much balanced in Punjab compared with other states in the country An overview of the trend based on the data on per capita consumption expenditure from NSS at current prices gives a similar trend. The rural-urban trade-off is. the cities benefited as much as the small and medium towns as a result of expansion of agro based industries and marketing of agricultural products. West Bengal is an example of a state where on the one hand both rural (INR952/USD21.42) and urban MPCE (INR1965/USD44. therefore. Karnataka and West Bengal.

shown in the Graph in dotted lines . has been particularly very steep in urban expenditures in the nineties and subsequent years. The rise. The trend of growing inequality however emerges clearly from both the data sets. however.) 1972-73 to 2007-08 Page | 2 .slowly during seventies and eighties (Graph).are from the small sample. It may be mentioned that figures up to the year 2004-05 are based on the large sample data of NSS while that for the subsequent years . Graph All-India Per Capita Consumption Expenditure (Rs.

pp. 2005. 87(1). Deaton. 2007. Government of India. National Accounts Statistics – Sources and Methods. MIT Press. All-India Average Per Capita Income 1970-70 to 2004-2005 Page | 1 .References Central Statistical Organisation. 1-19. A." The Review of Economics and Statistics.04. New Delhi. "Measuring Poverty in a Growing World (or Measuring Growth in Poor World).

The survey also concludes that consumers spent more on non-food items such as durables and services. ➢ Composition of the consumer expenditure basket : Decline in share of food and rise in the share of non-food items like durables in consumption portfolio indicates economic progress. only marginally trailing the 68% rise in urban MPCE. Coinciding with such economic growth.5% in absolute terms during the same period. Share of durables for Page | 1 .Some Positive Points from the Survey: ➢ Rising rural MPCE in absolute terms is a reflection of India’s economic growth: It would however. to a great extent . a growing urban-rural divide is. A section of the experts opine that in case of developing countries like India.inevitable and should not be a major cause for concern as long as rural income levels also improve in absolute terms. rural MPCE rose 64. not be correct to state that rural India has not benefited at all from the nation’s economic progress. During the latest survey (between 2004-05 and 2009-10) the Indian economy grew at an average annual rate of above 8%.

4 Literacy: Similar trends can be seen in the Literacy Rates in the Rural and Urban areas. the urban areas are having the better literacy rates than the rural areas. Page | 2 .Because of the availability of better facilities for Education. rose from 3% to 5% for the rural population and from 3% to 7% in urban areas since 1987-88. The 10 percentage point rise in expenditure of non-food items byte rural population since 1987-88 can be viewed as another indication of economic growth benefiting rural India. 8. the gap seems to converge which is a positive sign for the rural sector.example. But.

we see some measures to be adopted by the government to curb these disparities and to promote better rural-urban linkages. How to Promote Better Rural-Urban Linkages: In this section.9. Page | 1 .

and promote growth and poverty reduction. these ratios are much greater for rural roads than for urban roads. which disproportionately favour urban areas in both countries.1% increase in rural household head. Growth in the rural economy also generates fiscal and financial outflows from rural to urban areas(taxes from rural-based industries for example). The study finds that benefit/cost ratios for rural roads are about four times larger than for urban roads when the benefits are measured as a contribution to national GDP. various types of urban bias still prevail. Even in terms of urban GDP. Page | 2 . and the development of rural towns can also lead to much stronger rural/urban links and greater synergies between the two sectors. Increasing public investment in rural areas is therefore crucial in order to achieve greater poverty reduction. this impedes the efficient allocation of factors.9% increase in rural household income per Public investment in agriculture is associated with a 1. promoting nonfarm employment. and have somewhat countered the previous urban bias. employment. ✔ Increase Public Spending in Rural Areas: Past studies have consistently shown that public investment in the rural sector promotes rural growth in India. strengthen the links between rural and urban sectors. In another study. However. the terms of trade for agriculture have improved as part of the reform process. In addition. Adequate provision of infrastructure such as transportation and communication. is essential for achieving better rural-urban linkages as this would facilitate mobility and therefore access to markets. and ➢ income per head. However. We recommend the following policies to help correct urban bias.India historically followed development strategies favouring the urban sector. for example. and services for the rural population. To some extent. Roopa Purushottam found out that A 10% increase in: ➢ Urban expenditure is associated with a 3. Fan and Chan-Kang (2005) estimated the returns of rural and urban road development on rural and urban growth as well as on rural and urban poverty reduction. therefore contributing to the unequal development between the rural and urban sectors. rural-to-urban migration. particularly in terms of government investment priorities. Growths in the rural sector can also benefit urban areas in many ways. in the past two decades.In a recent study.

and markets of nearby villages.8% increase in rural nonfarm employment In India. two poor states of India. (1986) indicated the bulk of the poor are landless or live on small farms with inadequate land for their own food needs. by absorbing agricultural labour surplus. ✔ Develop the Rural Nonfarm Sector: The rural nonfarm sector is important for the growth of the rural economy as well as for poverty reduction. while contributing to the growth of the national economy. While villages benefit strongly from small towns through these linkages. at a 98% significance level.7% increase in rural household incomes. transportation. small rural town development in India helps to alleviate the pressure on bigger cities. ➢ Related work shows that a 10% increase in urban expenditure could lead to a 4. and growth to the rest of the economy. especially for the development of the rural nonfarm sector and for livelihood diversification (Bhalla 1997. Consequently they depend heavily on earnings from supplying unskilled wage labour to other farms or to nonfarm enterprises. India needs to continue to increase spending in rural areas in order to promote growth and reduce poverty in both urban and rural areas. income. and financial linkages. Therefore. production. employment. Public investment in physical infrastructure (road. Dev. and various types of economic and social service provision. Page | 1 . inputs. The development of small rural towns is also associated with better infrastructure (in terms of quantity and quality). the reverse is also true. Eapen 1995).Rural economic growth consequently generates employment. These linkages are well discussed in Wandschneider (2004). Jayaraj1994. It also provides opportunities for livelihood diversification for poor rural households. which in turn will facilitate access to markets and lower transportation costs. Small towns and urban centres depend and benefit from labour. ✔ Develop Small Rural Towns: The proximity and accessibility to small rural towns and urban centres by rural residents is crucial for the rural economy. Roopa Purushottam found out that ➢ A 10% increase in rural nonfarm employment translates into a 1. Shukla 1992. who studied the impact of small rural towns in local economic development in Madhya Pradesh and Orissa. Moreover. communication) as well as in education and health is crucial for the small farms to establish their own business and to access nonfarm jobs in the rural nonfarm sector. The author found that small rural towns and nearby villages are strongly linked through consumption.

is another means to correct any bias. Such a premise implies the need for the government to adopt effective strategies tailor-made for the rural population. providing health. housing. Correcting a government’s bias towards investment in urban areas is one of the most important policies to pursue.✔ Increasing private investment: A section of the experts have blamed the plight of the agricultural sector and inefficacy of the rural social safety net programs as the chief factors responsible for widening of the urban-rural divide. 10. but also secure future urban growth. It also led to large income gaps between rural and urban areas. Conclusion Like many developing countries. poor state of rural infrastructure such as power. roads etc. India has corrected the rural-urban divide to some extent as part of reform processes. education. Encouraging private sector participation. In particular. Other studies also support the idea presented here that correcting this imbalance will not only contribute to higher rural growth. India followed development strategies biased in favour of the urban sector over the last several decades. Decline in per capita food production. and pension services for rural migrants in urban areas is essential to promoting human capital movement from rural to urban areas or to the industrial sector. These development schemes have led to overall efficiency losses due to misallocation of resources among rural and urban sectors. More important. Promoting the development of the rural non-farm economy and rural small towns is another effective way to correct rural/urban bias and to create significant synergies between the two sectors. more investment in education. Facilitating the mobility of productive factors. correcting the urban bias will lead to larger reductions in poverty as well as more balanced growth across sectors and regions. and underperformance of social safety net programs like rural job schemes and public distribution systems have restricted rural income growth. But the bias still exists. unilaterally and via public-private partnerships (PPP). In particular. such as labour. and agricultural research and development has proved to be both pro-growth and pro-poor. Page | 1 . The positive impact of India’s thrust on economic growth has so far been largely limited to the urban population and is yet to widely percolate to the rural population. infrastructure. to create inclusive and innovative business models to cater to the needs of the rural population is one such strategy being experimented and implemented successfully in other developing countries.

food.in ♦ www.in ♦ www. ♦ Urbanization. 11. Connie Chan-Kang.Chandramouli. As a parting note.Today we have enough money.rural.mhupa.com Page | 2 . BIBILOGRAPHY ♦ Urban Growth by City and Town Size in India –by Ram B. The Planning commission of India must therefore work efficiently to meet the needs of both the urban & rural population.org ♦ www.gov.nic.re-emergingworld.wikipedia.gov. ♦ Is Urban Growth Good For Rural India by Roopa Purushottaman ♦ Rural Urban distribution of Population by Dr.in ♦ www. rural life does have its merits. resources and technology to rid the world of hunger and poverty. inequality and economic growth: evidence from Indian states by Massimiliano Cali ♦ ♦ NSSO Household Expenditure Survey 66th Round www.nic.urbanindia.in ♦ www. It is just that some key people have to make up their minds.C. With proper development of infrastructure even rural areas can become as good as urban areas. and Anit Mukherjee.india. Bhagat PhD ♦ Rural and Urban Dynamics and Poverty: Evidence from China and India –by Shenggen Fan. we can say that though urban life is advantageous.

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