Abstract:-
This presentation brings together data from various sources to examine key elements of the relationship between urbanization, growth and jobs and considers the implications for policy. It first makes the case that India’s ongoing urbanization is good news for the country’s economic prospects and jobs challenge. As a variety of data indicates, labor market outcomes tend to be better in urban areas as compared to rural areas, and in larger cities compared to smaller ones. At least some of this appears to be driven by the economic benefits of agglomeration. Further, the manufacturing sector appears to be quite important for the economy of many cities, especially when expansive definitions of cities that go beyond municipal boundaries are considered. However, the positive relationships between urbanization, growth, and labor outcomes should not be taken for granted. Beyond the need for urban areas to ensure that the forces of congestion do not overwhelm the benefits of agglomeration, manufacturing sector firms, especially, need an array of publicly provided inputs to be productive and thrive. Delivering such inputs is complex and requires close coordination of agencies across multiple levels of government. To understand the issues better, and suggest solutions, the final part of the presentation considers industrial parks and how they interact with the local economies they are embedded in.