India’s Urban Definition is Failing Its Growing Towns

General Studies Paper 3

Context

• India’s next Census in 2027 is set to retain the 2011 definition of “urban,” as announced by the Registrar General of India.

How India Defines Urban Areas?

• In the 2011 Census, an urban unit was defined as either a statutory town or a census town.
• Statutory Towns: Notified by State governments; governed by urban local bodies (municipal corporations, councils, nagar panchayats).
• Census Towns: Remain administratively rural, but they function like urban areas. It satisfies the following criteria;
  • A minimum population of at least 5,000.
  • At least 75% of the male main working population engaged in non- agricultural activities
  • Density of 400 persons per sq. km or more.

Limitations of the Current Definition

• Binary Framework: Settlements are classified only as “urban” or “rural,” ignoring peri-urban and transitional areas.
• Governance Gap: Census towns function like cities but remain under Panchayati Raj institutions, which lack the financial autonomy of urban local bodies.
  • In India, urban local bodies are more autonomous and have more freedom and control over their finances, while Panchayati Raj institutions are limited to implementing centrally designed welfare schemes.
• Outdated Criteria:
  • The 75% male workforce rule ignores women’s unpaid and informal work.
  • Semi-urban residents often juggle both farm and non-farm jobs, blurring the rural–urban divide.
• Mismatch with Ground Realities: Many villages have urban lifestyles and dense populations yet remain administratively rural.

Implications of Misclassification

• The outdated urban definition leads to a significant underestimation of India’s urban population.
• While the official 2011 Census reported that 31% of India’s population lived in urban areas, research using alternative density-based criteria (Population & Environment, 2019) suggests that the actual urban population could have been, ranging between 35% and 57%.
• Policy Blind Spots: Settlements excluded from the “urban” category receive fewer resources for housing, transport, sanitation, and social infrastructure.
• Planning Deficit: Peri-urban areas become the informal urban clusters with no proper governance, resulting in unplanned sprawl.
• Labour Market Distortions: Growth of service sector and gig economy in smaller towns remains unacknowledged in official classifications.

Way Ahead

• Broaden Criteria: Move beyond rigid population size and male workforce benchmarks to include:
  • Population density and contiguity.
  • Occupational diversity (beyond agriculture vs non-agriculture).
  • Functional linkages with nearby urban centres.
• Periodic Review: Regularly update classification criteria to reflect changing economic and demographic realities.
• Governance Reform: Gradual municipalisation of census towns to provide them with elected bodies and urban-level services.
• Gender-Sensitive Measures: Recognise women’s unpaid and informal work in defining occupational structures.
• Global Learning: Adopt multi-dimensional definitions like those used by OECD or UN-Habitat, which consider density, built-up area, and commuting patterns.