India's Rural Population Flocks To Cities, But Often Faces A Double-Edged Sword

Even after days, he could not find a roof over his head. Left with no other choice, he moved out to an informal settlement in the suburbs – walled in, cramped, and in shackles. That is how his abode was in the urban landscape. 

Urban migration has a reciprocal effect, wherein the people from the rural areas sign up for a bargain — they part with their native lands for better prospects. Still, various challenges, particularly those related to affordable housing, await them in the urban ecosystem. 

And yet, migration largely defines urbanisation — it boosts the economy as it is a net economic accelerator, contributing to the GDP (of the host country or state) by 0.5 to 2 per cent annually.

According to the Economic Survey of Rural-Urban Population (2023-24), internal migration in the country falls under four categories, of which the rate of urban-to-rural migration stands at 18.9 per cent, which is the second highest after the rural-to-rural migration stream (55 per cent). 

Here, a paradoxical situation persists: the urban corridor is expanding rapidly, but at the same time, the rural population is flocking to urban areas (despite the trend registering a marginal decline post the pandemic). 

So, what is the balancing ground, if any? 

The Affordable Housing Dilemma

As far as the migrating population is concerned, affordable housing is of paramount importance. 

As the demand for affordable housing in urban areas is shooting up dramatically (by 2030, the demand is estimated to reach 31.2 million units), the cost of living has also consequentially gone up. Invariably, the urban poor would continue to pay the cost of skyrocketing prices, as they would be pushed to informal settlements. 

As per data, about 17 per cent of the people living in urban India reside in dense, informal settlements. 

"We need to understand that a proper, quality, healthy house is a fundamental necessity for everybody. So, whatever it is we are going to do in terms of housing or urban infrastructure, it should be such that we are at least assuring people of a healthy habitat, people of a healthy house, so that you are in a position to carry out your activities in a proper manner," says SB Dangayach, Founder-Trustee, Innovative Thought Forum. 

Yet, affordable housing remains a challenge and, if not acted upon, a lost opportunity. As per projections, affordable housing could add 1 to 2 per cent to the GDP if supply ramps up. However, in the absence of a holistic policy and reforms, it could drive up the rental rates and further deepen the shortage in availability. 

The Urban Corridor

Based on the studies of NITI Aayog, it is estimated that more than 40 per cent of India's population will live in urban areas by 2030. 

Now, that means the urban corridor will continue to eat into the rural territory — many times this ends up in commons rights (the traditional rights of a community to use and conserve communal lands) going for a toss. 

At the other end, the urban areas must also be sufficient in themselves to accommodate rural migrants. Their basic requirements in terms of housing and other infrastructure should not be put at stake as well. 

This requires swathes of land — measured areas, and for that, urban planning becomes crucial. It is the cornerstone. 

Migration is directly proportional to urbanisation. The pace at which the migration happens, the city infrastructure is not developed. That is the biggest challenge here, unlike in planned cities such as Shanghai, Beijing, or Dubai

— Mohammed Hussain Shaikh, real estate educator

At a crossroads, the urban planners have to tread carefully between stakeholders' sentiments and the migrant population. 

"So, India needs to adopt a more inclusive approach, and the goal of governance should not invariably be eviction of these informal settlements, but it should be upgradation," Mohammed Hussain points out.