Paper: GS – I/II, Subject: Society and Social Justice, Topic: Urbanization, Issue: Urban Areas – Definition in Census.
Context:
India’s 2011 Census definition of “urban” is outdated and fails to reflect today’s evolving settlements. By classifying areas only as statutory towns (with formal governance) or census towns (meeting population and job criteria but still under rural governance), it misses many fast-urbanizing villages and peri-urban regions.
- This misclassification results in weak governance and inadequate infrastructure for transitional settlements.
Key Takeaways:
What are the different types of urban settlements in India?
- Urban settlements in India can be classified into several different types, which can provide insights into the country’s urbanization patterns
- Census Town: Population of at least 5,000, a population density of at least 400 per sq km, where at least 75% of the male working population is engaged in non-agricultural pursuits.
- Statutory Town: A town officially designated as such by the relevant state government. These towns typically have a corporation or municipality in charge of local government.
- Satellite Town: A town that is located in close proximity to a larger urban center and is dependent on it for economic and social activities.
- Urban Agglomeration: A continuous urban area of the city/town and also the suburban fringe/rural areas lying within the administrative boundaries of a nearby town/city.
- Outgrowth: A small settlement adjacent to a larger town or city that has grown out of it, but is still considered a separate entity by the government for administrative purposes.

Examples:
- West Bengal: From 2001 to 2011, 526 new census towns were identified, yet 251 census towns from 2001 remained governed rurally in 2011, showing governance delays.
- Growing Peri-Urban Areas: Settlements around metropolitan cities like Bengaluru and Delhi exhibit urban features but remain under rural administration, leading to poor urban service delivery.
- Gig Economy in Small Towns: App-based delivery and freelancing jobs spread into semi-rural areas, blurring urban-rural workforce distinctions ignored in current classifications.
Governance Challenges and Steps Taken by Government to Improve Urban Development:

India’s outdated urban classification overlooks dynamic towns and peri-urban regions, causing misclassification, weak governance, and poor services. Updating the definition with inclusive criteria and expanding municipal governance is crucial for better planning, infrastructure, and quality of life in India’s growing urban areas.
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