CHANAKYA NATIONAL LAW UNIVERSITY

FINAL DRAFT SUBMITTED IN THE FULFILMENT OF THE COURSE

“ECONOMICS-II”

TITLED-

“RURAL INDIA V/S SMART CITIES”

SUBMITTED TO:-

DR. SHIVANI MOHAN

FACULTY OF ECONOMICS-II

SUBMITTED BY:-
SUVAM KISORE
ROLL NO:-1768
SEMESTER: - 4th

SESSION: - 2017-2022
 DECLARATION BY THE CANDIDATE

I hereby declare that the work reported in the B. A. LLB (Hons.) Project Report entitled
“Rural India V/S Smart Cities” submitted at Chanakya National Law University is an
authentic record of my work carried out under supervision of Dr. Shivani Mohan have not
submitted this work elsewhere for any other degree or diploma. I am fully responsible for the
contents of my project report.
 ACKNOWLEDGEMENT

I would like to thank my faculty Dr. Shivani Mohan whose guidance helped me a lot with
structuring my project.

I owe the present accomplishment of my project to my friends, who helped me immensely

with materials throughout the project and without whom I couldn’t have completed it in the
present way.

I would also like to extend my gratitude to my parents and all those unseen hands that helped
me out at every stage of my project.

Thank You,
Name-: Suvam Kisore
Course:- B.A., Ll.B. (Hons.)
Roll No:- 1768
Semester:- 4th
 TABLE OF CONTENTS

 Introduction

1. Concept of smart cities

2. Method by which rural area can be made a smart village
3. Contribution of organised and unorganised sector in Indian GDP
4. Conclusion,

 Bibliography
INTRODUCTION

With the Smart Cities’ programmed well underway, it was merely a question of time before
the need for Smart Villages came on the radar, given the statistical predominance of the
latter. As per data from Census 2011, 69 per cent of the nation’s population (around 833
million) resides in the rural region, while only 31 per cent (approx. 377 million) live in urban
areas. If we are seeking to take the nation forward it will clearly have to involve the
development of the rural area. If we are to move forward towards the goal of a developed
nation, then smart villages will be a critical component of that milestone.

Today, the rural population is reeling under the impact of shrinking of employment and
wealth generation opportunities. The return of city labourers to their native villages is just
one manifestation of the temporary reverse migration. Against this backdrop, the creation of
Smart Villages could address several challenges in one go. Smart Villages could open up not
only employment avenues but also raise living standards in villages where infrastructure is
palpably absent. This is a crucial aspect that could stem conventional migration from villages
to cities, which is putting pressure on urban infrastructure and leaving a huge social impact.

Smart Villages are a good way of ensuring rural areas are not left out of the development
agenda even as cities boost their infrastructure facilities. Development of modern
infrastructure and urban conveniences in rural regions, whereby the rural-urban divide is
blurred, is generally referred to as ‘rurbanisation’ in India. Originating in the 1920s, the term
refers to the influence of rural life on urban society or vice versa.
AIMS AND OBJECTIVES

 To analyze the condition of rural areas critically

 To study the impact modernization in rural as well as in urban areas

RESEARCH METHODOLOGY

This project is based mainly and heavily on written text material. It is based on the doctrinal
method of research. The segments are structured and written actively. The writing style is
descriptive as well as analytical. This project has been done after a thorough research based
upon intrinsic and extrinsic aspect of the assigned topic. The doctrinal method in this research
paper refers to various books, articles, news paper, magazine, Dictionary. In this research
paper, the researcher will only use Doctrinal method.

HYPOTHESIS

Researcher presumes that there is a need of more tools and technique in rural area for their
growth and development.

SOURCES OF DATA

The researcher will be relying on both primary and secondary sources to complete the
project.

1. Primary Sources: Books.

2. Secondary Sources: Material available on the internet.

1. Concept of smart cities

A smart city is an urban area that uses different types of electronic data collection sensors to
supply information which is used to manage assets and resources efficiently. This includes
data collected from citizens, devices, and assets that is processed and analyzed to monitor and
manage traffic and transportation systems, power plants, water supply networks, waste
management, law enforcement, information systems, schools, libraries, hospitals, and other
community services. The smart city concept integrates information and communication
technology (ICT), and various physical devices connected to the network (the Internet of
things or IoT) to optimize the efficiency of city operations and services and connect to
citizens.1 Smart city technology allows city officials to interact directly with both community
and city infrastructure and to monitor what is happening in the city and how the city is
evolving.

ICT is used to enhance quality, performance and interactivity of urban services, to reduce
costs and resource consumption and to increase contact between citizens and government.
Smart city applications are developed to manage urban flows and allow for real-time
responses. A smart city may therefore be more prepared to respond to challenges than one
with a simple "transactional" relationship with its citizens. Yet, the term itself remains
unclear to its specifics and therefore, open to many interpretations.2

Other terms that have been used for similar concepts include cyberville, digital city,
electronic communities, flexicity, information city, intelligent city, knowledge-based city,
MESH city, telecity, teletopia, Ubiquitous city, wired city.

Major technological, economic and environmental changes have generated interest in smart
cities, including climate change, economic restructuring, the move to online retail and
entertainment, ageing populations, urban population growth and pressures on public finances.
The European Union (EU) has devoted constant efforts to devising a strategy for achieving
'smart' urban growth for its metropolitan city-regions. The EU has developed a range of

1
"The 3 Generations of Smart Cities". 10 August 2015
2
Hunt, Dexter; Rogers, Christopher; Cavada, Marianna (2014). "Smart Cities: Contradicting Definitions and
Unclear Measures". MDPI Sciforum – The platform for open scholarly exchange. sciforum.net. pp. f004.
doi:10.3390/wsf-4-f004. Retrieved 16 March 2016.
programmes under 'Europe's Digital Agenda". In 2010, it highlighted its focus on
strengthening innovation and investment in ICT services for the purpose of improving public
services and quality of life. Arup estimates that the global market for smart urban services
will be $400 billion per annum by 2020. Examples of Smart City technologies and programs
have been implemented in Singapore, Dubai, Milton Keynes, Southampton, Amsterdam,
Barcelona, Madrid, Stockholm.3

Smart Cities Mission envisions developing an area within 100 cities in the country as model
areas based on an area development plan, which is expected to have a rub-off effect on other
parts of the city, and nearby cities and towns. Cities will be selected based on the Smart
Cities challenge, where cities will compete in a countrywide competition to obtain the
benefits from this mission. As of January 2018, 99 cities have been selected to be upgraded as
part of the Smart Cities Mission after they defeated other cities in the challenge.4

It is a five-year program in which, except for West Bengal, all of the Indian states and Union
territories are participating by nominating at least one city for the Smart Cities challenge.
Financial aid will be given by the central and state governments between 2017-2022 to the
cities, and the mission will start showing results from 2022 onwards.

Each city will create a Special Purpose Vehicle (SPV), headed by a full-time CEO, to
implement the Smart Cities Mission. Centre and state government will provide ₹1,000 crore
(US$140 million) funding to the company, as equal contribution of ₹500 crore (US$70
million) each. The company has to raise additional funds from the financial market as a debt
or equity.

3
City of Stockholm. "The Smart City". Stockholms stad. Retrieved 30 May 2015.
4
"9 more cities added to Smart City Mission, total now 99". The Times of India. 19
2. Method by which rural area can be made a smart village

In order to better understand how a village can be developed as a smart one; we will first
need to understand what actually constitutes towards a village becoming smart in the first
place.
A smart village is one where sustainable energy sources are used as a measure of
development and people have access to quality education and healthcare, access to clean
drinking water, sanitation and nutrition, enhanced security, gender equality and democratic
engagement. The below chart would be a good starting point in understanding the concept.
In order to develop a smart village, all the above criteria needs to be met and a sustainable
environment needs to be created which is supportive of the initiatives required in order to
make the efforts to develop a smart village successful.

Education: This is one of the most important aspects of developing a village. A community
can only thrive when people have access to education which helps empower them with the
knowledge required to create better lives for the people around them. Therefore, this is
probably one of the most important criteria when it comes to developing a smart village.

Healthcare: A unified healthcare system needs to be developed which guarantees access to

healthcare for every citizen. A community cannot thrive if the people can’t even access basic
healthcare.

Access to Drinking Water and Sanitation: Clean drinking water is something that is a basic
requirement for survival along with proper sanitation to ensure that people live healthy and
fulfilling lives.

Nutrition: A unified program needs to be developed where every single individual in the
community has access to a nutritious diet. Regarding this, a proper plan needs to be
developed that would ensure that no one goes without food.

Connectivity and Security: Connectivity and Security are two of the most fundamental
requirements. Proper policing and maintenance of law and order are paramount for the safety
and security of a community. Connectivity is another aspect which needs to be looked into,
irrespective of whether we are talking about the roads, transport or digital and mobile
connectivity.

Only when a village meets the above criteria and is able to deliver them without hiccups will
it meet the status of a smart village.
3. Contribution of organised and unorganised sector in Indian economy.

Most people in India earn a livelihood by working for an income. They work for one
employer or many, or as self employed or own account workers or as contract workers,
home-based workers etc. in every sector in the economy. The informal sector is economic
activity that is neither taxed nor monitored by a government; and is not included in that
government's Gross National Product (GNP); as opposed to a formal economy. Although the
informal economy is often associated with developing countries-where up to 60% of the labor
force (with as much 40% of GDP) works, all economic systems contain an informal economy
in some proportion.

Share in national income

The Non-Corporate or unincorporated sector constitutes largest portion of the economy in

terms of value addition, savings, investments etc. The share of corporate sector is around 12-
14 percent in our national income while that of unincorporated [non-corporate] or Bhagidari
sector is more than 30 percent. In the case of United States, the share of corporate business is
nearly 70 percent.

Even in manufacturing activity the share of non-corporate sector is nearly 40 percent if we

consider the unregistered manufacturing group (fully non-corporate sector) plus the
partnership proprietorship groups in the registered manufacturing group.

The non-corporate forms of organisations are major players in such activities as

manufacturing, construction, transport, trade, hotels and restaurants, and business and
personal services.

The informal sector plays a significant role in the economy in terms of employment
opportunities and poverty alleviation. This sector generates income-earning opportunities for
a large number of people. In India, a large section of the total workforce is still in the
informal sector, which contributes a sizeable portion of the country's net domestic product.
The unorganised sector has a crucial role in our economy in terms of employment and its
contribution to the National Domestic Product, savings and capital formation.

Generally, all enterprises which are either registered or come under the purview of any one of
the acts like the Indian Factories Act 1948, Mines and Minerals (Regulation and
Development) Act, 1957, the Company Law, the Central/State Sales Tax Acts, the Shops and
Establishment Acts of the State governments, are defined as part of the organized sector. Also
included are all government companies, departmental enterprises and public sector
corporations.

"Similarly, forestry, irrigation works, plantations, recognised educational institutions, and

hospitals which are registered as non-profit making bodies are also classified as organised
sector...all unincorporated enterprises and household industries which are not regulated by
any acts of the above mentioned type and which do not maintain any annual reports
presenting the profit and the loss and balance sheets are classified as unorganized" (National
Accounts Statistics- NAS 1980: pp 69).

A partnership firm may, thus, be grouped under the 'organised sector' if it was covered under
any of the statutes mentioned and if it maintained annual accounts. Otherwise it would be
classified under the 'unorganised sector'. Thus, non-corporate enterprises can figure under
either of the two (organised and unorganised) sectors in the national income classification.

The unincorporated or non-corporate sector has the largest share of national income,
manufacturing activities, services, savings, investment, taxes, credit market, employment,
forex earnings, etc. Yet it is little understood, dismissed as 'un-organised', 'informal' or
'residual' sector. It is important that the nature and role of this sector are explored to see how
it impacts the economy, says R. Vaidyanathan.

The organised sector of the money market consists of the Reserve Bank of India, commercial
banks, companies lending money, financial intermediaries such as the Life Insurance, Credit
and Investments Corporation of India, Unit Trust of India, Land Mortgage Banks,
Cooperative Banks, Insurance Companies etc. and call loan brokers, and stock brokers.
The unorganised sector of the money market is largely made up of indigenous bankers,
money lenders, traders, commission agents etc., some of whom combine money lending with
trade and other activities.

The cen-tral bank occupies a pivotal position in money market. It is regarded as ‘presiding
deity’ of money markets. Its function is not only that of a watch dog of the monetary system
but also of a promo-tional and development banker.
4. Conclusion

The paper has attempted to analysis the problem of technology in the context of employment
in India and studied the strategy of employment in the Seventh Plan. The paper has drawn
that the technology in the field of both, agriculture and industry, has to play an important role
in employment generation. The choice of techniques of production has to be judiciously
selected as it is a highly controversial issue. However, in a labour surplus economy like India,
it can be conveniently said that labour-intensive techniques of production should be used for
creating greater employment opportunities in country. Here, Special importance and
emphasis should be laid on small scale units or rural industrialisation. For the reduce the
vagaries of monsoon, irrigation be accorded the top-most priority with that drought as well as
disease resistant seed technology should also be developed has suggested. It has expected that
blind imitation of western technology should not be made in our country, instead, appropriate
technology for a developing country.
BIBLIOGRAPHY

 Books

 Agarwal, H.S., “Microeconomics Theory”, Konark Publishers Pvt. Ltd., New Delhi,
1998
 Anindya Sen, “Micro economics Theory and Applications”, Oxford University, Press,
New Delhi, 2000.
 Ruddar Datt and Sundaram, K.P.M., “Indian Economy”, S. Chand & Company
Limited, New Delhi, 2004.

 Website

 https://www.businesstoday.in/sectors/banks/bank-npas-to-get-worse-in-the-current-
fiscal-rbi/story/279623.html
 https://acadpubl.eu/hub/2018-119-12/articles/6/1387.pdf