Why is the current definition of 'urban' in India failing to capture the realities of growing towns, and what could be the consequences?

India’s current definition of ‘urban’ is based on criteria set by the Census, which include population size, density, and proportion of male workers in non-agricultural activities. However, this definition has not kept pace with rapid social and economic changes, leading to many growing towns being left out of the official urban category.

• Narrow Criteria: The Census defines an urban area as having a minimum population of 5,000, population density of at least 400 persons per sq. km, and at least 75% of the male working population engaged in non-agricultural pursuits. Many expanding settlements do not fit all these criteria, especially the occupational requirement.
• Exclusion of 'Census Towns': Many settlements that function as urban (with urban infrastructure and lifestyle) are still classified as rural due to administrative reasons. These are called ‘Census Towns’ and do not receive the benefits or governance structures of statutory towns.
• Lack of Dynamic Updating: The urban definition is updated only every ten years with the Census, missing out on fast-growing peri-urban areas and newly emerging urban clusters in between census periods.

Consequences:

• Poor Urban Planning: Areas that are urban in character but not officially recognized miss out on planned urban development, leading to unregulated growth, poor infrastructure, and inadequate services.
• Resource Allocation Issues: Government schemes and funds for urban areas do not reach these settlements, resulting in a lack of investment in roads, sanitation, water supply, and public transport.
• Governance Challenges: These towns remain under rural governance structures (like Panchayats), which may not have the capacity or mandate to manage urban issues, leading to inefficiency and administrative confusion.
• Inequality and Quality of Life: Residents of such areas face a lower quality of life due to the absence of urban amenities, increased pollution, and lack of social infrastructure like schools and hospitals.
• Skewed Data and Policy: Inaccurate urban-rural classification can distort demographic and economic data, leading to misguided policies and planning at the state and national levels.