ECONOMIC DEVELOPMENT AND URBANIZATION IN INDIA: A Sub-national Level Analysis.

Short Abstract

The aim of this paper is to explore the association between Economic Development and Urbanization. The assessment of linkages between economic development and urbanization provides number of findings from this study. Study not only provides strong evidence for association between economic development and urbanization but reveals that as urbanization increases the economic development also increased. Linear regression analysis shows that urbanization reasonably predicts the economic development.
The level of urbanisation increased from 17.3 % in 1950 to 31.16 % in 2012, in the same period Gross Domestic Product (GDP) increased from 3.5 % in the 1950s, to 7.7 % in 2001-2011. The relationship between Per Capita Net State Domestic Product and Urbanization is reflected by the higher correlation coefficient. Sub-national level, Higher-income states, Maharashtra, Haryana, Tamil Nadu, Karnataka, and, Punjab have higher urbanisation level. Other side, Madhya Pradesh, Uttar Pradesh and Orissa shows significant urbanisation deficits with lower state income.