The old census city criteria does not capture India's urbanization, the ministry told a House panel

A census town is defined as a village with a minimum population of 5,000, at least 75% of the male working population engaged in non-agricultural activities and a population density of at least 400 persons per km2. | Photo credit: Nagara Gopal

The four-decade-old criteria used to classify census towns will not be able to capture the true extent of urbanization in India, the Ministry of Housing and Urban Affairs (MoHUA) told a parliamentary committee, saying the current strict definition, which the Registrar General of India (RGI) has decided to continue despite the ministry’s objections, does not take into account economic and spatial transformations.

The draft report on ‘Census Criteria for Defining Urban Areas’ was discussed by the Parliamentary Standing Committee on Housing and Urban Affairs headed by TDP MP Magunta Sreenivasula Reddy on Wednesday (September 16, 2026). Deposing before the panel, the Ministry of Housing and Urban Affairs said the old “rural-urban” binary was outdated and inadequate due to the diversity and complexity of economic activity.

The Prime Minister’s Economic Advisory Council (EAC-PM) says the country’s urbanization level may have been as high as 63% in 2015 based on satellite data, more than double the official estimate of 31% from the 2011 census. According to the 2011 census, out of a total population of 121 million, about 83.3 million Indians or nearly 68.8% of the people live in rural areas, while 37.7 million people or 31.2% of the population live in urban areas.

Uniform national thresholds

In a communication to the RGI in February 2024, the ministry highlighted several problems with the continued use of the 1981 definition. It objected to uniform national thresholds, saying they disadvantaged hill and northeastern states. The ministry also questioned the “male bias” of using only a male of working age as a parameter to define a city. Women’s labor force participation should also be utilized, he said.

The ministry also said population density was calculated using administrative boundaries rather than built-up areas, leading to misclassification of settlements. It suggested greater use of satellite imagery and proposed a category of “transition areas” to better capture rapidly urbanizing regions.

MoHUA further argued that the rural-urban binary overlooked suburban settlements and growth corridors that functioned as urban areas. She said the current system, based on data from the previous census, could lead to both exclusion and inclusion errors.

However, the RGI argued that it is too late to change the framework for the 2027 census as the enumeration blocks, boundaries, training and field deployment depending on the rural-urban classification are being finalized in advance. RGI also noted that while the Department raised several concerns, it did not provide an objective and quantifiable alternative definition.

The ministry suggested that the classification of cities could be done after data collection through a common questionnaire, but the RGI informed the committee that such a shift was not possible for the upcoming census. He added that the issue could be explored in future digital censuses, as electronically available data could allow census city classifications to be updated more quickly.

As the matter has significant implications for planning and administration, the committee said, according to sources, that while any immediate change may not be feasible, at least for future censuses, the government should develop updated criteria after necessary consultations.

A draft report that was due to be adopted has been shelved, with many members believing it needs further study.

Published – 16 Sep 2026 23:19 IST