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Villages are basic units of Indian Settlements.Small towns traditionally served as a transition point between the rural and urban environments; with cities now at their saturation point, small towns have become key destinations offering new locations for urban area growth. Small towns account for a third of new urbanization in India, having changed the way we view migration and job opportunity.

Role as a Transitional Area
A small town is typically characterized by having fewer than 100,000 residents; therefore, it serves to connect the rural area of the hinterland with that of a large metropolitan area. Small towns support rural migrants and metro area outmigrants through their informal economies, such as logistics and agro-processing, as well as various forms of product and service delivery through markets and service distribution. Additionally, peri-urban areas located in close proximity to urban centres expedite this rural/urban transition.

According to Griffith Taylor, towns go through a phased development.

Drivers of Urban Transition
Due to the challenges of living in a metro area (e.g., high land costs, traffic congestion, and cost of living) the push of capital and activities away from metros to small towns occurs by providing space at reduced costs and limited restrictions. Small towns represented 30% of the growth of urbanization from 2001 to 2011 (as noted by census data from 2001 to 2011). Additionally, it should be noted that the closer the small town is to a class I city, the more rapidly the population will grow. Small towns, therefore, are becoming the new centres for warehousing, construction, and service-related activities.

Implications and Policy Implications
If growth is not managed, it may lead to greater inequity within the small town and environmental degradation because small towns lack the infrastructure capacity of metro areas. To assist with managing this growth, the state of Odisha has developed a Rural-Urban Transition Policy based upon their phased support of all infrastructure in order to provide for long-term sustainable development. In addition, each of these small towns should initiate their own plans for providing necessary infrastructure to support their growth; housing, transportation, and environmental considerations must be embedded within a plan, which is fundamentally representative of a rural-urban land use pattern.

Source(s), Link(s) and Inspiration(s):

New Ruralism: Solutions for Struggling Small Towns

Rural-Urban Continuum: The Concept

Rural-Urban Linkages: The Dynamics

Tier Classification of Indian Cities and Fast Growing Urban Centres