Economic Growth and Rural-Urban Income Distribution

TT is not easy to allocate India's national income between the urban and rural sectors nor the change in their respective magnitudes over the ten year period. Fortunately, the two terminal points of our period coincide wi th the decennial Census and it is possible to make a somewhat rough estimate of the relevant magnitudes. There are however differences in definit ion of the urban area between the two Census of 1951 and 1961 that prevents a straight comparison of the urban population in the two years. The 1951 Census had included in the urban sector al l places w i th a population of 5000 and over as also some places w i th a smaller population but possessing definite urban characteristics. In the 1961 Census, while all places like municipalities, cantonements and other areas possessing recognised local administrations continued to be treated as urban, for other places the criteria for inclusion were made stricter. Thus, in order to count as urban, they had to have a population of not less than 5000, have a density of not less than 1000 per square mile, and have at least 75 p c of their working populations engaged in pursuits other than agriculture. On this definit ion , urban population in 1961 was only 17.8 pc as compared wi th 17.0 pc in 195L On a reclassification of the data for 1951 in terms of the definition of 1961, however, i t is found that the increase during the decennium is higher, being 17.8 p c in 1961 as against only 15.6 p c . 1951.. I t was therefore possible to identify the increase in urban population on a uniform basis.