Urbanisation of Small Towns in India

Syllabus: Urbanization, their problems and their remedies

Context

  • India’s urban narrative remains metro-centric, overlooking transformations occurring in small towns.
  • Out of nearly 9,000 census and statutory towns, only about 500 qualify as large cities.
  • The majority are small towns with populations below one lakh, now rapidly urbanising.

Drivers of Small-Town Proliferation

  • Between the 1970s–1990s, urban growth was driven by metropolisation.
  • Large cities absorbed surplus labour, capital, infrastructure, and consumption demand.
  • Metros now face over-accumulation, marked by inflated land prices and overstretched infrastructure.
  • Rising living costs have reduced affordability for working populations in metros.
  • Capital has shifted towards small towns due to cheaper land and labour.
  • Small towns now function as logistics hubs, agro-processing centres, warehouse nodes, and service markets.
  • They absorb migrant workers displaced from metros and rural youth lacking agrarian opportunities.

Nature of Urbanisation in Small Towns

  • Small towns are not peripheral but deeply embedded in the urban capitalist process.
  • Urbanisation occurs under capitalist stress, with weaker regulation and limited scrutiny.
  • Growth is dominated by informal labour, including construction, home-based work, and platform employment.
  • New power hierarchies are emerging around land, labour, and credit control.
  • This reflects urbanisation of rural poverty, not inclusive or equitable growth.

Policy and Governance Gaps

  • Flagship urban missions remain biased towards large cities.
  • AMRUT largely excludes small towns from substantive infrastructure funding.
  • Water and sanitation systems rely on temporary, fragmented arrangements.
  • Tanker economies expand, groundwater depletion increases, and ecological stress intensifies.
  • Municipalities remain underfunded, understaffed, and weak in planning capacity.
  • Planning is consultant-driven, with minimal local participation.

Way Forward

  • Politically recognise small towns as India’s primary urban frontier.
  • Adopt context-specific planning, integrating housing, livelihoods, transport, and ecology.
  • Strengthen municipal capacity with resources, autonomy, and transparency.
  • Regulate platform economies and digital infrastructure to protect labour rights and local value retention.

This will close in 0 seconds

Scroll to Top