Shedding light on unnoticed gems in India: A small town’s growth perspective

Recently, though some of the developing countries have been experiencing urbanization at a rapid pace, India is far behind them. Historically, a hefty proportion of India's urban population lived in large cities. However, the latest Census period (2001–2011) showed that small towns (population less than 0.1 million) such as Census towns had contributed around 30 % of the country's urban growth. In the backdrop of this fact, certain questions are pertinent: can the emergence of the small towns be interpreted as the second-best solution in the light of the agglomeration economies; whether different groups are traceable within the category of small towns; which economic factors determine the size and growth of these towns; where are these towns emerging, and what are the major policy initiatives to be undertaken for their development are some of the research questions which are analyzed in this study by considering 7437 small towns in India as per the 2011 census. Using the latest 2011 Census data, our analysis suggests that the small towns are neglected in terms of policy consideration and investment in infrastructural facilities. Cluster analysis is indicative of different groups of small towns. Infrastructure availability and salubrious climate are some of the major determinants of growth of small towns in India. They are emerging in the vicinity of large cities with low variation in distance and population size. Regression analysis also supports these results. It suggests that small towns emerge as large towns reach their saturation points, and the rural to urban transformation takes place rapidly in response to economic development. Finally, policy options are recommended to make small towns more productive in the future and help them contribute to sustainable and higher economic growth.