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Unit 14: Social Change in Contemporary India
3. Economic Dimension: Urbanisation is a natural and inevitable consequence of economic Notes
development. Urbanisation accompanies economic development because economic development
entails a massive shift of labour and other inputs from predominantly rural sectors to those
predominantly urban. The National Commission on Urbanisation of India recognises the
economic importance of the Indian cities and towns. It considers “urbanisation as a catalyst for
economic development and that the towns and cities despite their problems are for the millions
and millions of our people the road to a better future” the various cities in India, that some
cities have come up during twentieth century in places where there were nothing but forests
earlier. One of the first steel cities in India, like Jamshedpur in Bihar, has provided employment
to a large number of people including the Santals who are the local tribal inhabitants of this
area. These tribals who were relatively isolated earlier have come into contact with a wide
section of Indian population, coming from different regions, speaking different languages, and
so on. Besides Jamshedpur, three more steel towns have emerged after Independence. These
are Bhilai in Madhya Pradesh, Rourkela in Orissa and Durgapur in West Bengal. Emergence of
these steel factories has brought about not only prosperity but has led to the modification of the
whole social scenario of this area. Areas that were socio-economically backward have now
become prosperous and cosmopolitan. While talking about the economic features of urbanisation
in contemporary India, occupational diversification and migration appear to be the key aspects.
Briefly examine these aspects.
(i) Occupation
The degree of urban-industrialisation and planned development through the Five-Year
Plans could not bring about a significant shift in occupational structure in India till 1990.
The percentage of Indian labour force in agriculture remained static between 1901 and
1971. In the said period 69.4 per cent and 69.7 per cent of the total labour force was in
agriculture respectively. Though the percentage of urban population increased
substantially during this period there have not been corresponding increase in the
percentage of the labour force in the urban manufacturing, construction and service sector.
Things have started improving slightly by 2001. In 1991 around 67 per cent of the total
workers were in the agricultural sector. In 2001 only 58 per cent of the total workers have
been recorded to be in the agricultural sector. The results from 2001 census clearly suggest
a shift in the composition of labour force from a predominantly agricultural to moderately
non-agricultural sector. The percentage of urban workers engaged in primary (comprising
cultivation, household industry, mining quarrying, fishing), secondary (comprising
manufacturing and processing) and tertiary (comprising commerce and service) sectors
during 1993-94 is 16.8, 31 and 52.1 per cent, respectively. Whereas the total workforce
engaged in these three sectors during the same period is 67.5, 12.0 and 20.5, respectively.
Percentage of Urban Workers by Sectors, 1993-94
Sector Male Female Total
Primary 9.0 24.7 16.8
Secondary 33.0 29.1 31.0
Tertiary 57.9 46.3 52.1
There is widespread unemployment among the unskilled and other marginal workers in
most of the cities. Again, unemployment among educated classes in urban areas is a
peculiar feature in Indian society. It is estimated that 46 per cent of the total educated
unemployed are reported to be concentrated in the four major metropolitan cities in India.
During the period 1983 to 1999-2000, the percentage of persons in the labour force at the
national declined from 66.5 percent in 1983 to 61.8 percent in 1999-2000. The growth in
employment for persons employed in the age group 15 years and above on the usual
principal and subsidiary status has declined significantly in the nineties vis-a-vis the
eighties. And this has lead to the increased incidence of unemployment. There was an
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