What were the reasons for de urbanisation of india
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Conventional wisdom suggests that industrialization and urbanization go hand in hand. Policymakers often adopt an active “industrial policy” to accelerate growth. They also embrace an active “urban policy”, since industrialization without urbanization gets stalled. This has changed.
India’s industrialization and urbanization did grow together in the early 1990s. Manufacturing growth was initially concentrated around the mega cities. But it has dispersed in the last decade. The share of the manufacturing sector in employment, output, and number of enterprises has declined in urban areas. The share of manufacturing has increased in rural areas.
This de-urbanization of the manufacturing sector has been much steeper in the organized sector compared to the unorganized sector. Large-scale manufacturing enterprises, that account for 80% of output, are moving into rural areas in search of lower land costs to remain competitive. However, the unorganized manufacturing sector, that creates the majority of jobs, is still concentrating in cities, in search of better physical infrastructure.
India’s de-urbanization of the manufacturing sector raises potential concerns. Will the manufacturing sector moving away from cities compromise economic growth and job creation? Will low levels of infrastructure investments in rural areas slow down the pace of spatial transformation? Is there a need for a better integration of the rural-urban development agenda, as India proceeds with the next phase of urbanization?
India’s future economic growth may not be in its mega cities, which are already dense, but in its secondary cities, where there is substantial untapped potential. Two-thirds of India’s population still lives in the rural areas. Inter-urban competition between tier I and II cities could be India’s big driver of economic transformation and growth. Some have argued that the next phase of urbanization could result in a four-fold increase in per capita income.
With all its promises and desirability, urban-rural integration also imposes unprecedented financial, managerial and policy challenges. India’s renewed emphasis on rural development, and the current trend of the manufacturing sector moving away from densely populated urban areas, opens new doors and provides immense potential for regional and spatial development. at the World Bank.
India’s industrialization and urbanization did grow together in the early 1990s. Manufacturing growth was initially concentrated around the mega cities. But it has dispersed in the last decade. The share of the manufacturing sector in employment, output, and number of enterprises has declined in urban areas. The share of manufacturing has increased in rural areas.
This de-urbanization of the manufacturing sector has been much steeper in the organized sector compared to the unorganized sector. Large-scale manufacturing enterprises, that account for 80% of output, are moving into rural areas in search of lower land costs to remain competitive. However, the unorganized manufacturing sector, that creates the majority of jobs, is still concentrating in cities, in search of better physical infrastructure.
India’s de-urbanization of the manufacturing sector raises potential concerns. Will the manufacturing sector moving away from cities compromise economic growth and job creation? Will low levels of infrastructure investments in rural areas slow down the pace of spatial transformation? Is there a need for a better integration of the rural-urban development agenda, as India proceeds with the next phase of urbanization?
India’s future economic growth may not be in its mega cities, which are already dense, but in its secondary cities, where there is substantial untapped potential. Two-thirds of India’s population still lives in the rural areas. Inter-urban competition between tier I and II cities could be India’s big driver of economic transformation and growth. Some have argued that the next phase of urbanization could result in a four-fold increase in per capita income.
With all its promises and desirability, urban-rural integration also imposes unprecedented financial, managerial and policy challenges. India’s renewed emphasis on rural development, and the current trend of the manufacturing sector moving away from densely populated urban areas, opens new doors and provides immense potential for regional and spatial development. at the World Bank.
yashvinchurkar04:
Good answer
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The reason behind the deurbanization is the arrival of the industrialization in India.
Explanation:
- Industrialization not only introduced machines but changed the structure of society that led to the huge rural population to shift in the cities and towns.
- The deurbanization happened when people began to move out of urban to rural areas.
- During the colonial rule, several old urban centers began to decline, and its place new centers spring up.
- As machine-made clothes and goods filled in markets, many artisans went back to villages to earn their living.
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What were the reasons of de urbanisation of india
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