Urbanization in India 2023

In 2023, approximately a third of the total population in India lived in cities. The trend shows an increase of urbanization by more than 4 percent in the last decade, meaning people have moved away from rural areas to find work and make a living in the cities. 

Leaving the field

Over the last decade, urbanization in India has increased by almost 4 percent, as more and more people leave the agricultural sector to find work in services. Agriculture plays a significant role in the Indian economy and it employs almost half of India’s workforce today, however, its contribution to India’s GDP has been decreasing while the services sector gained in importance.

No rural exodus in sight

While urbanization is increasing as more jobs in telecommunications and IT are created and the private sector gains in importance, India is not facing a shortage of agricultural workers or a mass exodus to the cities yet. India is a very densely populated country with vast areas of arable land – over 155 million hectares of land was cultivated land in India as of 2015, for example, and textiles, especially cotton, are still one of the major exports. So while a shift of the workforce focus is obviously taking place, India is not struggling to fulfill trade demands yet.