It is time to dump the the urban-rural divide myth
As opposed to the popular notion, the rural economy in India has grown significantly compared to the urban economy and there is a peculiar trend of the urbanization rate slowing down.
THERE IS an age-old notion of urban-rural divide in India. But, it is time to dump this myth and work towards understanding the integration between urban and rural India. Changes in India’s consumption and production patterns need a more nuanced understanding of this integration, rather than falling back on traditional myths about urban-rural divide. Myth 1: There is faster economic growth in urban India, rather than in rural India and this is driving rapid migration to the cities.
Truth 1: But the fact is that the process of urbanization is actually slowing down as economic growth is increasing.
Myth 2: Rural India is still an agricultural economy.
Truth 2: The truth is that there is an upswing in the manufacturing sector in rural India
Myth 3: Rural-urban inequality is on the rise.
Truth 3: But the truth is that this inequality is narrowing down.It all boils down to a warped understanding of what rural India is really all about. There are several things about rural India that are not true any more. We often confuse rural India as an agricultural hub. In 2000, the rural economy accounted for 42% of the total manufacturing output and 27% of services. As opposed to the popular notion, the rural economy in India has grown significantly compared to the urban economy and there is a peculiar trend of the urbanization rate slowing down. While this may not necessarily be a bad thing, the trend can be attributed to factors like lack of infrastructure that makes it impossible for a city to support an influx of people. Challenging labour policies also sometimes make it difficult for people to move into cities. But urbanization makes sense. It makes clustering possible and allows for knowledge, innovation and talent concentration. It helps one take advantage of economies of scale and allows for big-ticket convergence of production. Another interesting thing is that the spending gap between urban and rural India is starting to narrow down now.
Truth 2: The truth is that there is an upswing in the manufacturing sector in rural India
Myth 3: Rural-urban inequality is on the rise.
Truth 3: But the truth is that this inequality is narrowing down.It all boils down to a warped understanding of what rural India is really all about. There are several things about rural India that are not true any more. We often confuse rural India as an agricultural hub. In 2000, the rural economy accounted for 42% of the total manufacturing output and 27% of services. As opposed to the popular notion, the rural economy in India has grown significantly compared to the urban economy and there is a peculiar trend of the urbanization rate slowing down. While this may not necessarily be a bad thing, the trend can be attributed to factors like lack of infrastructure that makes it impossible for a city to support an influx of people. Challenging labour policies also sometimes make it difficult for people to move into cities. But urbanization makes sense. It makes clustering possible and allows for knowledge, innovation and talent concentration. It helps one take advantage of economies of scale and allows for big-ticket convergence of production. Another interesting thing is that the spending gap between urban and rural India is starting to narrow down now.
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