Ans.

Various characteristics of urban growth or urbanization:

A.    Economic Development

    The level of urbanization is considered as an index of economic development.
    Economic growth results in the shift in demand and therefore to a reallocation of resources –land, labor, and capital- out of agriculture into manufacturing and services.

B.    Industrialization and Density

    The relative importance of manufacturing and services the does not just characterize an urban settlement but more importantly, by a high density of population. Much of manufacturing is cheaper when produced on a large-scale because of the economies of scale.
    Also, there are ready availability of inputs like skilled labor, repair services etc. from which profit is earned by the producer. People like to live near places of work.
    Economies of scale and cost of transportation cause concentration of production and people in a specific location.
    Industrialization leads to urbanization but not vice versa.
    The bigger cities have one advantage. Most businesses are subject to fluctuations. In big cities, one may switch from one employer to another in case of need or any other reason since there is a wide choice. In that way, a wage laborer is better off in migrating to a big city rather than a small city, where (big city) he is likely to be more fully employed.  All these factors increase the density of population in the cities.

Primary production and urban growth:

Primary production has to do with agriculture, fishing, forestry, and mining. It is well-known that, particularly since AD 1850, a large number of mining towns have emerged in India. The entire coal region of Bengal, Bihar, and Orissa has a number of, mining towns; the chief among which are Jharia, Ranigani, Keonjhar and Asansol. Unlike mining, fishing and forestry have not generated many urban places in India.

Secondary activities and urban growth:

The most conspicuous examples of urbanization directly as a result of secondary activity are Durgapur, Bhilai and Rourkela. Jamshedpur also had its beginnings as an industrial township in 1912. There is no doubt that secondary urbanization has made a strong impression on the Indian landscape.

Tertiary production and urbanization:

From ancient times, tertiary services have played a major role in the urbanization process. The earliest cities of the world came into existence essentially in order to provide tertiary services to their hinterland. It is often thought that the earliest cities developed as parasites thriving on the surplus food produced in the rural hinterland. The growth of tertiary activities in a city contributes in a direct way to city growth. In every city, a part of the city tertiary activities are meant for its own population, but a second and perhaps more significant part exists for the benefits of the people in the city’s hinterland.

Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions can involve multiple areas including development of human capital,  critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.

    Urbanization is an integral part of economic development. As an economy develops, there is an increase in per capita income and also demand for non-farm goods in the economy. These goods are not heavily land dependent. These are cheaper if produced in the urban sector because all provisions for production these goods are available here.
    With the rise in urbanization, many events like rapid population growth because of natural increase, migration from rural areas to urban areas, classification of rural areas as towns because of the changing demographic character of the rural regions pose a challenge.
    Other challenges are the weak growth of formal employment resulting in the growth of the urban informal sector, urban unemployment, and underemployment. Another challenge is the inability of social and physical infrastructure to grow at par with the urban population growth resulting in deterioration of the quality of urban life. These problems are visible in most of the cities in India.

Hence, the level of urbanization is regarded as an index of economic development, as financial growth results in the shift in demand and therefore to a reallocation of resources –land, labor and capital- out of agriculture into manufacturing and services.