Effect of urbanization in India on the urban poor, MSME sector, and environment

Ananya Talanki

ASARC Working Papers from The Australian National University, Australia South Asia Research Centre

Abstract: In the 21st century, urbanization has become an integral part of all modern societies around the world. This dissertation analyzes the role of the industrial and economic policies in the social and economic advancement of citizens and what governments can do in their economic frameworks to alleviate any gaps. In many countries, their industrial policies, or lack thereof, don’t always work in favor of the total population and put many small enterprises at an inherent disadvantage. Businesses in the MSME sector have an integral role in the Indian economy. With the increase of economies of scale, many large corporations have taken the opportunity to reduce their overhead costs, but smaller enterprises aren’t able to reap the same benefits as they simply don’t have the means to more capital in order to grow; many basic economic structures and policies are the cause of such repression. Urbanization, similarly, has also had broad repercussions on the working class, the urban poor, businesses, and the environment. In many areas, urbanization has led to the gentrification and urban congestion in which people in lower socioeconomic statuses are further prevented from economically and socially advancing, resulting in a greater income and opportunity gap. In addition to causing increasing hardship to many middle-class citizens, urbanization also impacts the environment immensely with changes in air quality and pollution as well as increase the risk of major environmental hazards such as flash flooding.

Keywords: Urbanization; industrial policy; economies of scale (search for similar items in EconPapers)
JEL-codes: I38 R11 (search for similar items in EconPapers)
Pages: 15
Date: 2020
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