Functional Classification

of towns in Maharashtra,
1991

Jyoti Nagpal
M.A.Geography (3rd semester)
Course 306:Urban Settlement Systems
Department of Geography
Delhi School of Economics
University of Delhi
2010
Contents

1.
2.
3.
4.
5.
6.

Introduction
Defining Town
Defining Classification
Need for Classification of Towns
Basis of Classification of Towns
Functional Classification of Urban Places
Dominant Approach- C.D.Harris
Multiple function Approach- Howard Nelson
7. Functional Classification of Indian Cities
(Theory+Methodology+Interpretation)
Introduction
Amrit Lal Classification of Indian Towns
Ashok Mitra Classification of Indian Towns- Discussion of the
Study Area
8. Conclusion
9. References

Introduction

Cities differ in their economic makeup, their social and demographic characteristics and the roles they
play within the city system. These differences can be traced back to regional variations in the local
resources on which growth was based during the early development of the urban pattern and in part the
subsequent shifts in the competitive advantage of regions brought about by changing locational forces
affecting regional specialization within the framework of the market economy. Recognition of different
city types necessitates their classification, and it is to this important aspect of urban geography that we
now turn. Emphasis is on functional town classification and the basic underlying dimensions of the city
system.
Functional classification of Towns is extensively done on the Western state of India, Maharashtra.
1991 census was taken as the basis of classifying 336 towns of Maharashtra into nine functional categories
(I-IX). These can be broadly be divided into1. Primary Activity (I-III)
2. Secondary Activity(IV-V)
3. Tertiary Activity (VI-IX)
Maharashtra encompasses an area of 308,000 km (119,000 mi) which is 9.36% of the countrys total area
and is the third largest state in India. It extends from 15o35N to 22o02N latitude and 72o36E to 80o54E
longitude. It is located in north centre of Peninsular India, with a command of the Arabian Sea through its
port of Mumbai. Maharashtra has a remarkable homogeneity, enforced by its underlying geology. It is
bordered by the states of Madhya Pradesh to the north, Chhattisgarh to the east, Andhra Pradesh to the
southeast, Karnataka to the south, and Goa to the southwest. The state of Gujarat lies to the northwest,
with the Union territory of Dadra and Nagar Haveli sandwiched in between. The Arabian Sea makes up
Maharashtra's west coast. Maharashtra has one of the highest levels of urbanization of all Indian states i.e.
about 42.7% of urbanization.
In 1991 census there were 30 districts in Maharashtra with a total of 336 towns. These districts were
namelyGreater Mumbai, Thane, Raigarh, Ratnagiri, Sindhudurg, Dhule, Jalgaon, Nashik, Parbhani, Nanded,
Akola, Osmanabad, Latur, Ahmadnagar, Aurangabad, Bid, Satara, Sangli, Chandrapur, Solhapur,
Kolhapur, Jalna, Nagpur, Wardha, Amravati, Pune, Bhuldana, Bhandara, Yavatmal and Gadchiroli.
Mumbai is the state capital with a population of approximately 15.2 million people. The other large cities
are Pune, Nagpur, Nasik, Navi Mumbai, Thane, Amravati, Aurangabad, Kolhapur, Sangli and Solapur.
Maharashtra's is India's leading industrial state contributing 15% of national industrial output. 64.14% of
the people are employed in agriculture and allied activities. Almost 46% of the GSDP is contributed by
industry. Major industries in Maharashtra include chemical and allied products, electrical and nonelectrical machinery, textiles, petroleum and allied products. Other important industries include metal
products, wine, jewellery, pharmaceuticals, engineering goods, machine tools, steel and iron castings and
plastic wares. Food crops include mangoes, grapes, bananas, oranges, wheat, rice, jowar, bajra, and pulses.

Cash crops include groundnut, cotton, sugarcane, turmeric, and tobacco. The net irrigated area totals
33,500 square kilometres.

Western Maharashtra, which includes the districts of Nashik, Ahmadnagar, Pune, Satara, Solapur, Sangli
and Kolhapur, is a prosperous belt famous for its sugar factories. Farmers in the region are economically
well off due to fertile land and good irrigation.

Defining Towns
Census definition has a dual criterion. Census of India of 2001, recognized 2 types of towns1. Statutory Towns (Legal)- It is defined as all places having a Municipal Corporation, Cantonment
Board or a Notified Town Area Committee and declared by a state law as a town
2. Census Towns- Places which satisfy the following criteria

A minimum Population of 5000 Persons

Atleast 75% of male working population engaged in non-agricultural pursuits.
A density of Population of atleast 400 persons/ km sq.

Defining Classification
Classification is a means of organizing diverse information so that it is more easily understood. It is a manner of
grouping of single item into one category. Urban characteristics vary from place to place. Based on dominant
urban characteristics, settlements are grouped into homogenous categories. The Urban classification can be
Qualitative where no empirical data is collected by characteristics of town. On the other hand,
Quantitative classification is based upon empirical data.

Need for Classification of Towns

The purpose of classifying cities is twofold. On the one hand, it is undertaken in order to search reality for
hypotheses. In this context, the recognition of different types of cities on the basis of, for example, their
functional specialization may enable the identification of spatial regularities in the distribution and
structure of urban functions and the formulation of hypotheses about the resulting patterns. On the other
hand, classification is undertaken to structure reality in order to test specific hypotheses that have already
been formulated. For example, to test the hypotheses that cities with a diversified economy grow at a
faster rate than those with a more specialized economic base, cities must first be classified so that
diversified and specialized cities can be differentiated.

The simplest way to classify cities is to identify the distinctive role they play in the city system. There are
three distinct roles.
1. Central places functioning primarily as service centers for local hinterlands.
2. Transportation cities performing break-of-bulk and allied functions for larger regions.
3. Specialized-function cities are dominated by one activity such as mining, manufacturing or recreation
and serving national and international markets.
The composition of a cities labour force has traditionally been regarded as the best indicator of functional
specialization, and different city types have been most frequently identified from the analysis of
employment profiles. Specialization in a given activity is said to exist when employment in it exceeds
some critical level.

Basis of Classification of Towns

There are many basis of urban classification or we can identify different types of urban classification. The
5 types are1. Genetic Classification- Deals with the origin of cities in context of time.
2. Location/ Size Classification-Geographical setting of the town
3. Morphological Classification- Form and the internal structure of the cities.
4. Hierarchical Classification- cities classified on the bases of order of functions performed an their

intensity.
5. Functional Classification- Cities may be classified on the basis of type of economic activities
carried on in the city. Certain economic activities may have acquired greater significance than
others. For example: - presence of Iron and Steel industry lends a certain name and character to the
city. Some cities are known for their administrative status as State / District capitals, others for
their educational Institutions and yet others for Trade and Transport. In terms of India, generally
tertiary activities are most important followed by Secondary (including household and organized
Modern industry). Primary activity forms third important activity and it is a dominant activity in
the small towns.

Functional Classification of Urban Places

There are two approaches to study of Functional classification of towns:1. Dominant Function Approach- In which largest number of workers are employed in one activity in the city.
This approach is far too simple and ignores the presence of other activities in town. Moreover, the number
and percentage of workers is not always the best measure because manufacturing, by its very nature can
employ more people than in trade. Hence, the number of workers in these two activities is not directly
comparable.

2. Multiple Function approach- This approach measures the degree of specialization in a particular activity. The
degree of specialization is determined by number of workers in city in relation to some norms which is set for
a city.

The dominant function approach can be exemplified by that of Harris and Multiple Function
approach by that of Nelson.
Dominant Function Approach:
Chauncy D. Harris classified the US cities in 1930. He was able to identify qualitatively dominant function out
of Multifunctional character of cities. He used employment and occupational data reduced to percentages to
indicate cut off points for urban activities ranging in importance. His classification is based on the fact that some
activity groups employ many more persons than other do.
Functional Classification of Cities of USA by Harris
1. Manufacturing Cities Manufacturing Sub types
a. Employment in manufacturing equal to 74% of total employment in manufacturing combined with
retailing and wholesaling.
b. Manufacturing and mechanical industry contain atleast 45 % of gainful workers (Occupation)
example: - Detroit, New York, North California.
2. Manufacturing Cities Manufacturing Sub types
a. Atleast 60% of the total employment in manufacturing, retailing and wholesaling, together.
b. Manufacturing and mechanical industry contain between 30% and 45% of gainful workers. Example:
- Buffalo, Philedelhia, Rochester.
3. Retail Centres
a. Atleast 50% of the total employment in manufacturing, retailing and wholesaling, together.
b. Atleast 2.2 times of wholesaling alone. Example: Tulsa, Wichita, Shreveport.
4. Diversified Cities
a. Employment in manufacturing, wholesaling and retailing is less than 60%, 20% and 50%
respectively, of the total employment in these activities.
b. Manufacturing and mechanical industry contain between 25% and 35% of gainful workers. Example:
- Boston, Kansas city, Los Angeles.
5. Wholesale Centre
a. Employment in wholesale is atleast 20% of total employment in manufacturing , retailing and
wholesaling, together.
b. Atleast as much as 45% is in retailing alone. Example:- California, Denver.

6. Transport Centres
a. Transport and Communication is atleast 11% of gainful workers ad workers in transport and
communication equal atleast 1/3 the number in manufacturing and mechanical.
b. Atleast 2/3 the number in trade. Example :- New Orleans
7.

Mining Towns
Extraction of minerals account for more than 15% of gainful workers (for cities of population more than
25,000) Example:- Minnesota , Michigan.

8. University Towns
Enrolment in colleges (University, Technical Institutions, Liberal arts colleges and Teachers Colleges) .
Atleast 25% of population of the city. Example:- Florida, Manhattan, Utah.
9. Resort and Retirement Towns
Cities with low percentage of population. Example: Resorts: Atlantic City, Miami. Retirement towns: Fort
Collins, Colorado

Carter labelled Harriss classifications as subjective because the decisions of the cut off points seem
to be personal one and were set by simple means.

Multiple Function Approach:

Howard Nelson based his classification on major industry groups as listed in 1950 census of population. Nelson
identified 9 activity groups:-

1. Manufacturing
2. Retail trade
3. Professional Science
4. Transport and Communication
5. Personal science
6. Public Administration
7. Wholesale Trade

8. Finances, Insurance and Real estate

9. Mining

For each activity group, average population of labour force engaged in that activity was determined. Standard
Deviation was calculated to determine Functional specialization of an individual city in a given industry group. 4
degrees of variation from the mean were recognized and the towns grouped in their appropriate categories.
Nelson computed 3 Standard Deviations - +1 Standard Deviation, +2 Standard Deviation and +3 Standard
Deviation. For each activity group, since he was concerned with levels of employment that were unusually high in
order to identify functional emphasis in a chosen city. The chosen city might be in 1, 2 or 3 standard deviation
above the employment in a given industry group. If deviation is positive from the mean is:
Within 1sd for all functions- DIVERSIFIED TOWN
More
than
1sd
for
1functionUNIFUNCTIONAL TOWN
More than 1sd for 2 functions- BIFUNCTIONAL
TOWNS
More than 2sd for a function- HIGHLY
SPECIALIZED.
In Nelson`s Method the ordering of towns according to
functions (distinctive function) does not actually bring out the real scenario of classification of the economic
activity. As far as degree of specialization is concerned, the method focuses more on whether the town is
unifunctional, bifunctional or diversified, rather than bringing out which function actually predominates.

Functional Classification of Indian Cities

The main scope of information on this aspect is the Indian Census. It adopted this typology from old US
classification of economic activities. It is called STANDARD INDUSTRIAL CLASSIFICATION.
PRIMARY ACTIVITIES
1. Cultivation
2. Agricultural Labourers
3. Forestry, fishing, Plantations and mining and quarrying etc.
SECONDARY ACTIVITIES
4. Household Industry
5. Manufacturing other than household industry
TERTIARY ACTIVITIES

6. Construction
7. Trade and commerce
8. Transport Storage and Communication
9. Services

Amrit Lals Classification of Indian Towns

Amrit lals classification is a Multi-functional classification as he compares the percentage of workers in
every type of economic activity in a city to the national average for the respective activities. He calculated
a LOCATIONAL QUOTIENT for each economic activity in every town and uses it to define the
functional categories.
Methodology:
Loactional Quotient for city A in industry I:
=

Percentage of all workers in city A in Industry I

Median Percentage of all workers in Industry I in all cities

If Locational Quotient = 1 , then city A has Normal Specilalization or Concentration of that Industry
and if Locational Quotient is more than 1, then city A has extraordinary specialization of that
Industry.
The Locational Quotient is multiplied by 100 (Locational Quotient * 100)
Range

Specialization

Locational Quotient

90 109

Normal

Locational Quotient

More than 110

Significant

Cities with significant specialization i.e. more than 110 Locational Quotient is divided into following
categories according to Locational Quotient value.
Range

Class

Locational Quotient

Over 170

Locational Quotient

150 169

Locational Quotient

130 149

Locational Quotient

110 - 129

Classification: Amrit Lal divided Indian cities into 5 major and 3 minor categories.
Major

Minor

1 Manufacturing
.

Wholesale trade

2 Transport
.

Finance, Insurance and real estate

3 Retail Trade
.

Education

4 Public Administration
.
5 Other Professional services
.

Functional Classification by Asok Mitra

A thorough classification of all urban places in India was attempted by Asok Mitra, a former Registrar
General of Census and a noted authority on population statistics in India. He grouped 7 Industrial
categories of workers (excluded category I and II) into 3 broad groups to derive 3 major functional types:
A. Manufacturing Town :
III. Forestry, Fishing, Plantation, Mining and Quarrying etc.
IV. Household Industry
V. Manufacturing other than household industry
VI. Construction
Percentage of workers in A ( III. , IV. , V. , VI. ) is greater than percentage of workers in B ( VII. ,
VIII. ) put together or percentage of workers in C ( IX )
B. Trade and Transport Town:
VII. Trade and Commerce
VIII. Transport , Storage and Communication

Percentage of workers in B ( VII. and VIII. together ) is greater than C ( IX ) or A - ( III. , IV. , V. ,
VI. ) together.
C. Service Town :
IX. Services
Percentage of workers in C ( IX ) is greater than B ( VII. and VIII. together ) or A - ( III. , IV. , V. ,
VI. ) together.
Manufacturing and Trade and Transport town were further sub-classified as :
A. Manufacturing Town
1) Mining or Plantation Town - Percentage of workers in III is greater than 10% or more than
IV. , V., or VI.
2) Artisan town - Percentage of workers in IV. Is greater than 10% or more than III. , V., or VI.
3) Manufacturing Town - Percentage of workers in V. Is greater than 10% or more than III. , V. ,
or VI
4) Construction Town - Percentage of workers in VI. is greater than 10% or more than III. , IV. ,
or V.

B. Trade and transport Towns

5) Trading Town - Percentage of workers in VII is greater than 10% or more than VIII.
6) Transport Town - Percentage of workers in VIII. is greater than 10% or more than VII.

Methodology
Triangular Method:
In all 7 towns were recognized. The degree of specialization in each of the 3 basic groups was identified
on the basis of Triangular Method.
In this method, the number of workers in each of the three groups is expressed as a percentage of the total,
thus, the values for all 3 groups would add up to 100. The values of the 3 groups are then plotted on a
triangular graph, represented by an Equilateral triangle. Thus, each town or city may be plotted as appoint
within the Equilateral Triangle, where the perpendiculars drawn to each of the 3 sides of the triangle are
directly proportional to the percentage of workers in each of the three groups.
The In centre of the Equilateral Triangle represents a town in which the percentage of workers in each of
the three groups is exactly 33 1/3. Such a town has obviously no Functional Specialization. Asok Mitra

drew three circles with radius of 6 2/3, 11 2/3 and 16 2/3 units from the in centre to differentiate four
levels of specialization.
He designed the degrees of specialization as follows:
Degree of Specialization

Code

Location in Triangle

I.

Functions Highly diversified

FDH

Within 1st Circle

II.

Functions Moderately diversified

FMD

Between 1st and 2nd Circle

III.

Predominant Function Accentuated

PFA

Between 2nd and 3rd Circle

I
Predominant
V. Accentuated

Function

highly PFHA

Outside 3rd circle but within the

field.

Hence to calculate the degree of specialization Value of each three groups are expressed as a percentage to
the total (III to IX), adding up to 100. Then these values are plotted on the triangle.
On the Basis of Degree of Specialisation

Function
Diversified
Functional Type FHD
Manufacturing
(A)

Function
Moderately
HighlyDiversified
FMD

Predominant
Function
Accentuated

Predominant
Function
Highly
Accentuated

PFA

PFHA

Total

28

28

11

55

122

Trade
and
Transport (B)
67

46

24

11

148

Services (C)

24

16

20

66

Total

119

90

41

86

336

On the basis of these 3 functions, on the map of Maharashtra all these 3 were plotted for 336 towns by
giving a clear overview of towns and their degree of specialisation.
Greater Mumbai with just 1 town performed highly diversified function with only manufacturing as its
main area of specialisation. Thane the most urbanised district had 16 manufacturing towns, 4 in Trade and

Transport and 3 in service. Districts like Osmanabad, Latur, Buldana and Akola had no manufacturing
towns. The major functions were either Trade and Transport or Services, amongst which Trade and
transport had the highest percentage. Chandrapur and Gadchiroli district have no towns engaged in Trade
and Transport, they mainly are engaged in Manufacturing or Service.
Districts located near the sea enjoy the benefits of advantageous location because of port and huge supply
of water to industries. Also huge labour force is cheaply and widely available because of migration due to
many pull factors.

The towns are further classified into Diversified and Specialised.

Main Functional Types of Towns

Functional Type

Diversified Function

Predominant Function Accentuated

Total

Manufacturing (A)

56

66

122

Trade and Transport (B)

113

35

148

Services (C)

40

26

66

Total

209

127

336

Ashok Mitra classification on the whole brings out the major categories on the basis of broad economic
activities. It succeeds in differentiating Manufacturing, Trading and Service cities.
Conclusion
It can be interpreted from the above data tables, that functional specialisation is lacking in Indian cities,
specially seen in the study area of Maharashtra. There exists a system of diversified towns. With
globalisation big cities are acquiring more and more service functions including financial and business
services and therefore service component of the economy is increasing, but still service is not much
specialised in the state. In Maharashtra maximum towns are specialised in Trade and transport with very
few towns having it as predominant function.

References1. Maharashtra state district profile, 1991. Census of India, 1991

2. Oxford Atlas of India Revised 31st edition, Oxford University Press. New Delhi: Government of

India
3. Urbanisation and urban systems in India by R.Ramachandran