Govt likely to redefine ‘urban’ in new Census

New Delhi (TIP): India’s next urban transition may not be taking place inside its cities. As the country has already begun Census 2027, and with rapid urbanisation, a discussion is going on whether the traditional definition of urban India still reflects the realities on the ground. The government is likely to change the definition.
The discussion centres on a growing category of settlements that are neither fully rural nor formally urban, but increasingly display characteristics of both.
A senior Union Urban Ministry official said, “These are the times when there are chances that the government would want to change the definition of what is urban because the time has changed and demography has changed.”
The question has acquired greater significance at a time when economic activity, mobility and infrastructure needs are expanding beyond municipal boundaries.
Settlements on the outskirts of major cities, along industrial corridors and around emerging economic hubs are witnessing changes once associated only with urban centres. Residents work in manufacturing, services and logistics, travel daily to nearby cities and depend on transport, housing, sanitation and digital connectivity that mirror urban requirements. Yet many continue to be governed as rural areas.
India’s census classifies urban areas as either statutory towns, which are governed by urban local bodies, or census towns that meet specified thresholds relating to population, density and non-agricultural employment. While these categories have long guided urban planning, a growing view among planners is that they may not fully capture the pace and nature of contemporary urbanisation.
The issue goes beyond classification. Whether a settlement is categorised as rural or urban influences planning priorities, infrastructure investments, fiscal allocations and institutional responsibilities. In a way, it affects all major indicators. Urban local bodies generally have greater planning powers and resources than rural institutions, making classification a critical factor in how rapidly growing settlements are governed.