Growth problems for India’s medium-size cities
In countries like the US and China, they are engines of economic progressbut in India, megacities still dominate
Although India has experienced rapid growth over the last two decades, spatial disparities have increased. India’s growth is concentrated in mega cities. This stands in sharp contrast with the spatial development in China and the US, where intermediate cities have become the new drivers of growth and job creation. Why is economic activity concentrated in high-density clusters in India? Have the manufacturing and services sectors shown similar or different patterns of spatial development? Will megacities experience decreasing returns in future? Why are medium-size cities not growing? Do they suffer from poor infrastructure? We examined these questions with the help of enterprise data in 900 districts (Klaus Desmet, Syed Ejaz Ghani,Stephen D. O’Connell and Esteban Rossi-Hansberg, The Spatial Development Of India, policy research working paper series 6060, World Bank).