This paper maps out the structure and relative dynamics of cities of various size classes in India. It aims to address their hierarchical distribution, by employing the rank-size rule, Gibrat's law, and a primacy index. The implications of urban concentrations for GDP, banking system, FDI, civic amenities, and various urban externalities (such as pollution and spatial exclusion) are also examined. It shows that India's urban system, though it follows the rank-size rule, is huge and top-heavy. It follows also Gibrat's law of proportionate growth. Although India's cities collectively account for less than one third of the total population, they command more than three fourths of the country's GDP. Megacities have become congested, clogged, polluted, and also show significant social polarization. There is a gridlock situation for the cities, inhibiting their potential for becoming effective economic and social change sites. The top-heavy character of India's urban system also adversely impacts the balanced regional development of the country.
The interaction of cultural diversity and human capital and their combined and conditional impacts on regional economic growth have not been explored in depth. The present study shows that India’s cultural diversity and human capital have significant impacts on regional economic growth, but the impact of cultural diversity declines with an increase in human capital stock and level of initial regional incomes. These findings are akin to the findings of other studies reporting varying impacts of human capital on economic growth with differing levels of economic development. This implies that the less developed regions, being farther from the technological frontier (Vandenbussche et al., 2006), display a stronger diversity‐led catch‐up effect.
The rapid growth of population combined with rising levels of consumption and pollution has increased water insecurity in urban India. The depleting water sources on the one hand, higher financial and technological costs to refine and transport water from far off sources on the other, leave limited possibilities to augment the water supply in the near future. Climate change may further adversely impact the available sources of fresh water supply. Intra-urban and inter-class water supplies are also issues in Indian towns and cities. A large section of population in urban India collects water from public and private sources located far away from their residence and bears direct and indirect enormous opportunity cost. The present paper discusses these aspects of water security and sustainability in urban India and highlights monitory and social costs of collection of water located away from premises.
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