Urbanization Contributed a lot to Economic Development During 20th and 21st Centuries in Developing Countries such as India. The Rate of Urbanization is such that Per Every 5 Minutes, 30 to 40 People are Migrating from Rural Areas to Urban Areas in the Country. There are Several Reasons Leading to Urbanization. As Part of this Specific Management Insight, the Reasons for Growing Urbanization, Critical Success Factors of Urbanization and The Challenges Coming with Urbanization are Discussed considering the Developing Country such as India. So far (1994-2025), I have Been to Indian Metro Cities such as New Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Mysore, Pune, Bhubaneswar, Raipur, Ahmedabad, Indore, and Visited 14 out of 28 states of India (including Rural Areas); and Visited Four 4 Foreign Countries such as US, UK, Ireland, and Finland; Seen the Metro cities such as New York, London, Cambridge, Dublin, and Helsinki. With this Experience, this specific Perspective is Written.
Reasons for Growing Urbanization: Basically, as on 2025, People in Developing Countries are Particularly looking at Having the Better Life Style and Quality of Living. This Specific Zeal is Growing Rapidly Because of the Growth of Internet and Smart Phoneseven in Rural Areas. Now, as on 2025, with Ecommerce, Every Product is Reaching all Corners of the Country including remote Unreachable areas. One More thing is Education became Free (particularly high quality education from IITs and IIMs and Foreign Universities with Platforms such as Edx.org, Course Era, IEEE Education, NPTEL, Google Courses, LinkedIn Courses etc). This is also Another Reason, Educated people for Employment and Better Wages Purpose want to Move to Urban Areas. One More thing is We are Laying More than 50 Kms/per Day Highways in the Past Decade across the Country. This is also Increased Reachability of Metro Cities to Rural Communities in Order to Sell Their Agricultural Products in Metros or to Migrate to Metros or to Send Their Children to Metros. One more Attitude Particularly Exhibited by the Migrated People from Rural Areas to Urban Areas in the Country, They want to Work Sincerely and Make Money/Living in the Cities. Sometimes, it is Observed that These Migrated Workers’ Children After Coming to Metros and Spending a Decade in One or Two specific areas, these children (the next generation) is becoming White Collar Workers/Knowledge Workers in IT companies/Retail Firms in Metro Cities. Particularly to Experience the Growth in Per Capita income in Family, these People are migrating to Urban Areas. One more reason is Even if the Rural Person is a Skilled Or Semi-Skilled Worker such as Electrician/Plumber/Driver, he can get better rate for the Same Services in Metro Cities; Same Skill, Same Service, however Payment is Higher in Metro Cities for this Kind of Work to Compare with Rural Areas.
Critical Success Factors of Urbanization: Following are the Critical Success Factors of Urbanization Particularly in Developing Countries:
- Having Decent (not Congested) Population Density per Square Kilometer.
- Having Proper Sewage System; without Water loggings; even if Water logging happens during rainy Season, it should be able to Clear in Few Hours.
- Having the Flowing Traffic; without Congestion.
- Having Roads with Connectivity suitable for both Public Transport and Goods Transport
- Interconnected Public Transport System, connecting Air, Rail, Local Train, Metro, Subway, Pram, and Bus (including City Bus) connectivity;
- Diversity in Vehicle Fuel Type such as Petrol, Diesel, Electrical, CNG, Solar Power etc will maintain balance and Protect the Environment from Carbon Emissions
- Diversity in Transport Vehicles and Transport Systems also Contribute to Public Welfare.
- Continue Retaining and Cleanly Maintaining Pre-Independence Era Solid Constructions such as Public Hospitals, Railway Stations (Such as Chhatrapati Shivaji Maharaj Terminus), Government Buildings, Schools, Colleges, Universities, Museums, Heritage sites is Important
- Going Further, Proving Different Accessibility Options to Needed Public to Public Places will Head the Nation to a Developed Country
- Essentials such as Public Distribution System comprising Food Essentials, Vegetables, Fruits, Medicines, Fuel, Clothing, Water has to be Planned Much ahead of Time; and Storage Warehouses to be kept distributed across Multiple Locations in a Metro City.
- Main Hospitals should be Reachable and Should have Proper Connectivity
- Mainly Skilled Human Resources such as Doctors, Engineers, Educators, Technicians such as Electricians, Plumbers, Tailors, Drivers; and Helpers Should be Spread across the City. Particularly When Managing a Metro City, Demographic Diversity in People, Diversity in Educational Qualifications, Diversity in Skill Set, Diversify in Income Levels Will Balance the Society
- Particularly Waste Management such as Generation of Power from Waste instead of Land Fillings, Proper Channeling will make the city Self Sufficient.
- Proper Bio Diversity, Plantation on The Sides of Roads is a Continuous Process; that keeps the City Temperatures Under Control.
- There Should be Diversified Affordable Accommodation/Housing across the City
- One Should Make Use of Water Resources such as Rivers, Water Ponds in City and Developing Parks around the Water Resources can Improve Health of the Public.
- Food/Retail Outlets Should be Spread Across the City
- E-Commerce Delivery Boys, Courier Services, Postal Services, Door Step Healthcare Providers, Online Food Delivery Boys Should be Able to Roam around and Locate the Places in the City.
In Reality Not all these Things are Possible in a Specific City. Usually, Certain Cities Carry Certain Advantages and Certain Cities Carry Certain Challenges. However, having the Above Specified Critical Success Factors (CSFs) in a Metro City Can Definitely Increase the GDP of the City; can head towards a $1 Trillion Dollar Economy from a Single City.
Challenges of Urbanization: Now, let’s see Some of the Challenges of Urbanization:
- Congestion: Inorganic Development in Specific Selected Locations Leading to Congestion and Conflicts in Resource Sharing is One Challenge
- Proper Time Management in Transport: at Individual Level is Major Challenge in Metro Cities; Everyone has to Plan Much ahead of Time and Start Early when They are Commuting. This Avoids Several Unwanted Accidents in Metro Cities.
- Waste Management & Handling Water Loggings in Rainy Season: frequently Happens in Several Cities; We Need to Live With it up to Some Extent (we may not achieve perfection in it) because of the Geographical Condition of the Country; prone to Floods and Cyclones.
- Self-Control in Managing Personal Finances: This is the Inherent Problem (or may be Sometimes Opportunity) Every Citizen is Facing in Metro Cities. That is, Every Product has Multiple Variants at Multiple Quality Levels and Multiple Price Ranges in Market from Different Manufactures. If we go on Spending 10% more on Each and Every Product; that too… 10% more on 10 different products, at the End of Shopping We End Up in Spending 100% more than our Planned Shopping Budget. Here, Self-Control is the Success factor in Metro Living. Also Sometimes, we may get a Better Product than We Expected.
Thus, These are the Practical Things, We Keep Observing in Different Metro Cities. Having the Success Factors and Handling the Challenges can Improve the GDP of Individuals, Organizations and also the Cities in a Developing Country.
I enjoyed Writing it…….
Hope You also Enjoy Reading it.
All the Best.
Dr.Goparaju Purna Sudhakar