It is fairly well established that the explosive growth in the economy is also triggering a gradual demographic shift towards urban areas. It is estimated that by 2050, India’s population would be almost equally apportioned between rural and urban areas.
The first indications are that this trend is fast taking root. All of this suggests that future public policy will have to devote attention equally between urban and rural India.
A joint report by the National Council of Applied Economic Research, or NCAER, and Future Capital Research has identified 20 cities in the country as the leaders of this trend. An interesting metric identified by the survey is that while these cities account for 10% of the population, they generate nearly a third of the disposable income.
Some cities, such as Surat, have shown rapid mobility among income classes, with the middle class gaining, while the low-income category has shrunk.
Among other things, it shows that the cities recording the fastest economic growth are not the big four metros.