India's Growth is Urbanized - Sandeep

Is India’s Growth Urbanized

For the MotionGroup Members :

1. Pradeep Patel2. Prashant Mankotia3. Prateek Mudgal4. Pankaj Chauhan5. Sandeep Rana

• Meaning of Urbanization –

In the Census of India 2001, definition of urban area adopted is as follows: the

(a) All statutory places with a municipality, corporation, cantonment board or notified town area committee, etc. (b) A place satisfying the following three criteria simultaneously:

• i) a minimum population of 5,000;

• ii) at least 75 per cent of male working population engaged in non-agricultural pursuits; and

• iii) a density of population of at least 400 per sq. km. (1,000 per sq. mile).

• According to the Census 2001, in India out of total population of 1027 million about 285 millions live in urban areas and 742 millions live in rural areas. Thus, around 28 out of every 100 persons in India live in urban areas.

As per the UN estimates for the year 2000, 47 percent of total population of the world live in urban areas. The percentage of urban population in Asia is 36.7 while that for Europe, South America and North America are 74.8, 79.8 and 77.2 respectively.

• Source : Google Images

• Source : Google Images

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It is the best of the world, it is the worst of the world—and the gaps are growing.

The top students from the Indian Institutes of Technology are not just globally competitive, they have set the global standard. Yet, many, if not most, children in India finish government primary schools incapable of simple arithmetic.

Source : Google Images

• While there is increasing “medical tourism,” where people travel to India for high-quality, low-cost medical treatments—the typical Primary Health Center doctor in rural area is less competent than doctors in Tanzania.

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• Source : Google Images

Similarly, in economic performance, while parts of urban India compete for business in software engineering and biomedical research, parts of rural India have poverty rates comparable to borderline “failed states,” such as Haiti and Nigeria, and have child malnutrition rates higher than any country in the world.

Let us discuss the Indian Growth Story, to know exactly Whether India’s growth is Urbanized or not.

Source : Google Images

India’s Growth Story Economy of India is based in part on planning through its

five-year plans, developed, executed and monitored by the Planning Commission. With the Prime Minister as the ex officio Chairman, the commission has a nominated Deputy Chairman, who has rank of a Cabinet minister Montek Singh Ahluwalia is currently the Deputy Chairman of the Commission

Source : Google Images

First Five Year Plan

First plan (1951-1956) The first Indian Prime Minister, Jawaharlal Nehru presented the first five-year plan to the Parliament of India.

Focus – Get the country’s economy out of the cycle of poverty. Investment in agrarian sector including investment in dams and irrigations.

Growth Target was 2.1 % of GDP the achieved growth rate was 3.6 %.

Source : Google Images

• Irrigation Project Initiated – Bhakra Dam ( Punjab) Hirakud Dam , Mettur Dam ( Tamil Naidu)

• At the end of 1956 – 5 IITs were started as major technical institutions.

Source : Google Images

• All India Institute of Medical Sciences, commonly known as AIIMS , started functioning in the year 1956, leading to the realization of the dreams of Jawaharlal Nehru.

• AIIMS has been created as an autonomous institution according to an Act of Parliament that states it to be the core for nurturing excellence in every aspect of health care.

Source : Google Images

• Second plan (1956-1961)

• The second five-year plan focused on industry, especially heavy industry.

• Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were established

Source : Google Images

• In1961, IIM Ahmedabad (IIMA) was started as an autonomous institute in collaboration with the State and central government.

• IIM Bangalore was started in 1973 to cater to the rising demand for managing the technical uprising in the country.

• Indian institute of Management, Indore (IIMI) was established a decade ago.

• IIM, Lucknow (IIML) was started on a modest footing back in 1981.

• Fourth plan (1969-1974)

• At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalized 14 major Indian banks and the Green Revolution in India advanced agriculture

• Impact of Green Revolution – India transformed itself from starving nation to an exporter of food.

• States Benefited from Green Revolution – Punjab , Haryana , Western U.P, Eastern plains of River Ganga in West Bengal.

• The Green Revolution resulted in a record grain output of 131 million tons in 1978-79

• White revolution in India - In Fourth Plan White revolution also started in India also known as operation flood.

• Tribhuvandas Patel (Verghese Kurien) – Father of White Revo.

Sixth plan (1980-1985) • When Rajiv Gandhi was elected as the prime minister, the

young prime minister aimed for rapid industrial development, especially in the area of information technology.

• In 1981 Maruti Udyog Limited was established by an Act of the Parliament holds a major share of the Indian market and caters to almost every market segment with economic models.

• Seventh plan (1985-1989)

• The Seventh Plan marked the comeback of the Congress Party to power. The plan lay stress on improving the productivity level of industries by up gradation of technology

• As an outcome of the sixth five year plan, there had been steady growth in agriculture, control on rate of Inflation, and favorable balance of payments which had provided a strong base for the seventh five Year plan to build on the need for further economic growth. The 7th Plan had strived towards socialism and energy production at large.

• Period between 1989-91

• New Economic Policy 1991

• Reasons for Initiating NEP

• Policies responsible for problems.

• Industries Policy Changes.

• Eighth plan (1992-1997)

• Modernization of industries was a major highlight of the Eighth Plan. Under this plan, the gradual opening of the Indian economy was undertaken to correct the burgeoning deficit and foreign debt.

• The major objectives included, containing population growth, poverty reduction, employment generation, strengthening the infrastructure, Institutional building, Human Resource development, Involvement of Panchayat raj, Nagarapalikas, N.G.O’s and Decentralization and peoples participation.

• Energy was given priority with 26.6% of the outlay. An average annual growth rate of 6.7% against the target 5.6% was achieved.

• Ninth Plan (1997 - 2002) Prioritize agricultural sector and emphasize on the rural development.

• To accelerate the growth rate prices were stabilize.

• to ensure food and nutritional security

• Basic infrastructural facilities like education for all, safe drinking water, primary health care, transport, energy

• Growing population was checked.

• Importance to issues like women empowerment, conservation of certain benefits for the Special Groups of the society was taken care off.

• Liberal market were created for increase in private investments

• During the Ninth Plan period, the growth rate was 5.35 per cent, a percentage point lower than the target GDP growth of 6.5 per cent

• Tenth plan (2002-2007)

• Special Economic Zones (SEZs) are being developed with a view to provide infrastructure and hassle free environment to promote exports from the State. SEZ Act gives major incentives for infrastructure creation • 100% FDI allowed in construction

• FDI limits relaxed in telecom, civil aviation and construction;

• FDI policy being reviewed. Record investment by FIIs due to steps taken and very good economic performance.

• Indo-US Nuclear deal Initiated.

• Gist of Five year plans.

• Objective of 5 year plans :

• The service sector is booming, agriculture lagging, and manufacturing performance is a mixed bag.

• Job creation in the private organized sector has been very weak.

• wage expansion has been more rapid for those with already high wages.

• Investment, both domestic and foreign, has been relatively weak.

• The Gini coefficient of inequality of land distribution in rural India was 0.62 in 2002

• Human Development Index.

• HDI is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide.

• India Ranked 142 out of 183 Countries According to United Nations Development Program’s Human Development. Countries like Kazakhastan, Sri lanka, Vietnam, Bhutan , Congo are ranked above India. Iceland and Norway occupied first and second Slot.

• In agriculture, there are surplus states and deficit states, with reference

• In the rural sector, there is concentration of land in the hands of a few persons even today.

• The Government has not succeeded much in solving the problems of rural unemployment and underemployment by giving support to cottage and small scale industries.

• Hindu Rate of Growth

• It suggests that the low growth rate of India, a country with a high Hindu population was in a sharp contrast to high growth rates in other non-Hindu Asian countries, especially the East Asian Tigers, which were also newly independent.

• Growth Rates of National Income (in percentage)

• (Target) (Actual)• 1. First Plan 2.1 3.6• 2. Second Plan 4.5 4.0• 3. Third Plan 5.6 2.2• 4. Fourth Plan 5.7 3.3• 5. Fifth Plan 4.4 5.2• 6. Sixth Plan 5.2 5.2• 7. Seventh Plan 5.0 5.8• 8. Eighth Plan 5.6 6.7• 9. Ninth Plan 6.5 5.4• 10. Tenth Plan 8.0 –

• Labor markets: little growth in formal jobs

• According to the Indian Market Research Bureau, there are 80 lakh children how are still out of the school.

• No of Children's• Bihar – 13,15,768• U.P - 27,64,816• Rajasthan - 10,00,311• Madhya Pradesh - 3,06,641• Orissa - 3,89,661• West Bengal - 6,77,852.

• ‘Flying Geese Paradigm’

• which says the Asian economies will take off one by one and move in a cluster, just like migrating geese. Japan would be at the head of the formation.

• The Indian economy has recently been notching up some of the highest growth rates in the world. But India’s economic growth is truly a miracle, simply because its economy has followed a completely new path to development, one that has not been followed by any of the late developing economies. That is really scary because we are not following a proven model.

• Migration –• Migration is the most visible and dramatic phenomenon in the

growth of cities.

• Census year Number Population Population % to Urban (In million) (Per million Plus city) Population1901 1 1.51 1.51 5.84

1911 2 2.76 1.38 10.65 1921 2 3.13 1.56 11.14 1931 2 3.41 1.70 10.18 1941 2 5.31 2.65 12.23 1951 5 11.75 2.35 18.81 1961 7 18.10 2.58 22.93 1971 9 27.83 3.09 25.51 1981 12 42.12 3.51 26.41 1991 23 70.66 3.07 32.542001 35 107.88 3.08 38.60

Source: Jain et al (1992); Census of India 2001 (http:// www.censusindia.net)

Example - DELHI

UA/Constituents Total Population(000), 2001

Growth Rate (%) 1981-1991

Growth Rate (%)1991-2001

Delhi UA 12791 46.94 51.93

Delhi (M.Corp.) 9817 43.22 36.22

Delhi Cantonment 124 10.83 31.84

Peripheral Areas 2555 149.17 232.88

Sources:1.Census of India 1991, Series I, India, Part IIA (ii)- A series, Towns and Urban Agglomerations 1991 withTheir Population, 1901-1991, Registrar General and Census Commissioner, India, New Delhi.2. Census of India 2001, www.censusindia.net.

• Delhi with a population of 12.8 million ranks third after Mumbai and Kolkata.

• It shows a higher growth rate exceeding 50 per cent during 1991-2001 compared to 47 percent of the previous decade. Delhi Municipal Corporation, which is the central city, shows a decrease in growth rate.

• The growth in Delhi UA is therefore primarily due to the census towns that have shown extremely high growth rates in 1991-2001.

• Growth of Million Plus Cities.• Annual exponential growth rate

• 2001 1991• 1. Greater Mumbai 16368084 12596243 2.62• 2. Kolkata 13216546 11021918 1.82• 3. Delhi 12791458 8419084 4.18• 4. Chennai 6424624 5421985 1.70• 5. Hyderabad 5533640 4344437 2.42• 6. Bangalore 5686844 4130288 3.20• 7. Ahmadabad 4519278 3312216 3.11• 8. Pune 3755525 2493987 4.09• 9. Kanpur 2690486 2029889 2.82• 10. Nagpur 2122965 1664006 2.44• 11. Lucknow 2266933 1669204 3.06• 12. Jaipur 2324319 1518235 4.26• 13. Surat 2811466 1518950 6.16• 14. Kochi 1355406 1140605 1.73• 15. Vadodara 1492398 1126824 2.81• 16. Indore 1639044 1109056 3.91• 17. Coimbatore 1446034 1100746 2.73• 18. Patna 1707429 1099647 4.40• 19. Bhopal 1454830 1062771 3.14• 20. Vishakhapatnam 1329472 1057118 2.29• 21. Ludhiana M. Corp. 1395053 1042740 2.91• 22. Varanasi 1211749 1030863 1.62• 23. Madurai 1194665 1085914 0.95• Total for Million 94738248 70996726 2.88• Source: Census of India (1981, 1991, and 2001).

Example Mumbai

• After independence in 1947, the growth of the port, the discovery of offshore oil, the emergence of financial services, the development of national and international trade and the establishment of many public sector units and educational institutions gave further impetus to the growth of the city. Mumbai also became the capital of the State of Maharashtra, adding further to its administrative importance.

• The findings are summarized below.

• In Greater Mumbai 1,959 slum settlements have been identified with a total population of 6.25 million, which forms 54 per cent of the total population of the city (Census of India, 2001).

• Migration has to stop

• It is estimated that 100 to 300 new families come to Mumbai every day and most land up in a slum colony or just erect a shanty on the nearest available footpath.

• Professor R N Sharma, head of the Urban Studies unit in Tata Institute of Social Sciences says that Mumbai is undoubtedly disintegrating into slums.

• “Thanks to migration, the city’s population is rising rapidly. Already 67 per cent of the city works in the informal sector. If the World Bank estimate of the city reaching a population of 2.25 crore by 2025 is true, slums will be everywhere.”

• The Issue of Migration has been Politicized by the MNS Party also.( Maharashtra Navnirman Sena).

• Feb 2008 Violence against North Indians in Maharashtra.• .

• Per Capita Income

• Meaning and Significance

• Per capita Income means how much an individual earns, of the yearly income that is generated in the country through productive activities

• History of India Per Capita GDP

• In 2002-03 the Per Capita Income in India was Rs 19040. • In2003-04 the Per Capita Income in India was Rs 20989. • In2004-05   the Per Capita Income in India was Rs 23241. In 2005-06 the Per Capita Income in India was Rs 25956. In 2008 – 09 the Per Capita Income in India is Rs 38,084

State wise per capita Income in Rupees.

The Highest Per Capita States

Year No State\UT 2004-05 2005-06

1. Chandigarh 75181 866292. Goa 66135 701123. Delhi 55215 616764. Pondicherry 44908 484775. Haryana 35044 388326. Maharashtra 32979 370817. Punjab 33158 367598. Gujarat 29468 341579. Himachal Pr. 31140 3380510. Tamil Nadu 27137 29958

Source: For Sl. No. 1-32 -- Directorate of Economics & Statistics of respective State Governments, and for All-India -- Central Statistical Organization

State wise per capita Income in Rupees.

The Lowest Per Capita States

Year No State\UT 2004-05 2005-06

1. Bihar 7467 7875 2. Uttar Pradesh 11941 13262 3. Madhya Pr. 14534 15647 4. Orissa 16306 NA 5. Rajasthan 16800 17863 6. Assam 16825 18598 7. Jharkhand 17493 19066 8. Chattisgarh 18068 20151 9. Manipur 18386 2032610. Meghalaya 21915 23420

Source: For Sl. No. 1-32 -- Directorate of Economics & Statistics of respective State Governments, and for All-India -- Central Statistical Organization

• Agony of Bimaru States

• Punjab, Maharashtra, Haryana, Gujarat, Tamil Nadu,Himachal Pradesh are undoubtedly developed states and Bihar, Madhya Pradesh, Assam, Rajasthan, Uttar Pradesh etc. are backward states.

• India’s total GDP growth rate in 1991 was 5.4 % per annum and• Bihar – Negative 1 % • MP – 0.4 %• UP 2.1 %• Assam - 2.6 %• Rajasthan - 3.5 %

• It is Clear that Development in India is very uneven and concentrated to few states. States like U.P, Madhya Pradesh, Rajasthan, Orissa which is home to more than 60% of India’s population are still very backward.

• NREGA – National Rural Employment Guarantee Act – 2005

• An Act to Provide for the Security of the households in rural areas of the country by providing at least one hundred days of Guaranteed wage employment in every financial year to every household whose adult members volunteer to do unskilled manual work.

• In this Govt. decided to reimburse only upto a maximum of Rs 100 as daily wage per person under NREGA to states.

Purpose of NREGA

The National Rural Employment Guarantee Act 2005 offer relief to underemployed manual labour and to those struggling for a living in drought prone dry land rain – fed farming dependent areas.

• Farmers' suicides in India

• Thousands of farmers have committed suicide in India in the last decade • due to multiple reasons, including Drought, and debt; more than 17,500 • farmers a year killed themselves between 2002 and 2006, according to • experts who have analyzed government statistics. Most suicides have • occurred in states of :

• Andhra Pradesh, Maharashtra, Karnataka, Kerala and Punjab.

• Example• Currently Vidarbha was in the media for a spate of farmer suicides in recent years

ostensibly because of the falling Minimum Support Price for cotton.

• The problem is complex . The World Trade Organisation policies and developed nations' subsidies to their cotton farmers which make Vidarbha's cotton uncompetitive in world markets.

• The Indian government had promised to increase the minimum rate for cotton by approximately Rs 100 ($2) but reneged on its promise by reducing the Minimum Support Price further. This resulted in more suicides as farmers were ashamed to default on debt payments to loan sharks. "In 2006, 1,044 suicides were reported in Vidarbha alone - that's one suicide every eight hours.

• It is not only the landed who have a crisis of indebtedness to deal with. There were a number of landless families who had leased land on a short-/long-term basis by securing loans.

• Thus, the survivors were reduced to landlessness due to debt. Among those committed included medium and large landowners who were also affected by a high level of un-payable debt.

• Naxalism: - Maoist revolutionary movement in India.

• ‘Naxalism’, the socio - political identity of violent Marxist – Leninist - Maoist revolutionary movement in India has its root in a remote village of West Bengal – Naxalbari - which became the symbol of tribal-peasant revolt started in 1967.

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• Though the movement in West Bengal was crushed within five years of its emergence,but the movement was only officially over.

• Reemergence of Naxalite movement:

• The Naxal movement witnessed a resurrection in early 1990, it was fragmented, fractionalized and confined to the state of Andhra Pradesh, it was successful in consolidating its base and gathering support in under - privileged, under - developed tribal areas, in addition to spreading wings in other states.

• .

• Over the years, the Naxals organized themselves in a better manner, acquired weapons. In their consistent battles over almost last two decade, they have managed to put para - military troops and police forces under tremendous pressure with their secretive and unpredictable way of functioning.

• The battle - hard Naxals are now perceived to be the ‘greatest threat’ to India’s internal security and the Ministry of Home Affairs has acknowledged that 13 Indian states and their 190 districts are affected by the growing cloud of Naxal movement.

• Spread of Naxal network: Such has been the extent of Naxal violence that in the last• half – a - decade, the number of civilians and security personnel killed in the Naxal • belt is much greater than those in the insurgency - ridden north east and Kashmir. • Whereas 4405 death were reported in Naxal - related violence during the period, the • figures stand at 4,324 and 4,136, in North east and Kashmir, respectively.•

They Control 40% of land area in India.

• Government initiatives: The Government of India has realized the fact that unlike other extremist movement, Naxal activities find it easy to garner mass support as they ideologically seek to render justice to socially backward classes.

• Blatant use of force and banning the outfit is past has evidently proved to be ineffective in tackling the spread of Naxal menace. Hence, if Naxals are to be dissociated from the rural support base, the Government must come up with plans to bolster socio-economic activity in Naxal-infested areas which, in turn can act as a means to upgrade standard of living of the poor populace.

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• indian Prime Minister has posited in past that Naxalite problem had a strong socio-economic dimension that was at the very essence of the issue. He rightly made a distinction between the hardcore Naxalite, who needs to be tackled severely, and the foot-soldier whom the Government will try to wean-off from the path of violence though socio-economic packages. This is the path India needs to follow—cautious use of force and simultaneous deployment of poverty elevation measures—which can ensure an end to this gravest problem.

• Source & Acknowledgement

• Business World, Wikepedia, Google Images.• Migration In India Cause and Trends by – J.N Choudhary.• Provisional Results of Census of India 2001: • Census Result 2001.• Planning Commission : Various Five Years Plan.• Urban Growth by City and Town Size in India – Ram B. Bhagat. • India’s• Urban Future, University of California Press, Berkeley.• Economic and Political Weekly.• Metropolitan Cities in India: Issues of Development.• Draft Approach Paper to the Tenth• Five-Year Plan (2002-2007), Planning Commission, New Delhi, 2001.• World Urbanization Prospects.• India - Inclusive Growth and Service delivery: Building on India’s Success

Development Policy Review.

• Farm Input Subsidies in Indian Agriculture.” Institute of Development Studies Working Paper 140, Jaipur India.

• Government of India, Ministry of Finance. 2004. Central Government Subsidies in India: A Report.

• Government of India, Planning Commission. 2005. Midterm Appraisal of 10th Five Year Plan (2002-2007). http://planningcommission.nic.in/midterm/midtermapp.html

• Annual Status of Education Report 2005 • Narain, A. 2005. “Participation Rates, Wage Trends, and Determinants.”

Background Paper for forthcoming World Bank Report, India Labor and Employment Study.

• GOVERNMENT OF INDIA MINISTRY OF INDUSTRY - STATEMENT ON INDUSTRIAL POLICY.

• India’s Urban Future: It’s Time to Pay Attention – Sanjoy Chakravorty.• INDIA: URBAN POVERTY REPORT 2009• TRENDS AND PATTERNS OF URBANIZATION AND THEIR ECONOMIC• IMPLICATIONS - Amitabh Kundu• Ministry of Urban Development and Poverty Alleviation (1988).The National

Commission of Urbanization, Government of India, New Delhi.

• Thank You.