4 min read.Updated: 07 Jan 2019, 12:04 AM ISTEjaz Ghani
The trade-offs between forces of agglomeration and congestion costs determine where engines of growth locate
India’s unprecedented economic growth during the last two decades has been spearheaded by lopsided spatial development, with clusters of economic activity concentrated in a few highly dense megacities. Engines of growth have failed to spread to less dense secondary cities. Given that a majority of the population in India still lives outside megacities, this has created huge spatial disparities. Uneven spatial development is common in many countries, but it is much more pronounced in India. Unlike in China, Europe and the US, where the engines of growth and job creation have spread to the secondary cities, in India medium-sized cities remain mired in joblessness and poverty. Policymakers frown upon unequal spatial disparities and this has increased the importance of inclusive spatial development in our development discourse.