Chapter 8

Socio-Economic Impact of Urbanization

8.1 INTRODUCTION

Globally, the current trend is huge expansion of urban areas, attributed to

migration and natural population growth. Urbanization an outcome of globalization is
associated with social and economic impacts in the urban areas which are considered
as centres of progress, offering numerous options to residents. Socio-economic
impacts very often determine the landuse in a given region which in turn is the cause
for environmental issues (Mander and Palang, 1994; Melluma, 1994). The progress of
urbanization increases the stress on environmental ecosystems and natural resources
(Bradbury, 2009). In any country, the pattern of urban growth and its rate is closely
associated with the city's economic growth, its direction and composition (Heggade,
1998). Davis (1962) has described urbanization as a transition of urban centres from
sprawled pattern to concentrated growth . It may also be described as a function of
social and economic changes taking place over time (Goel, 2012). An active field of
research is the relation between socio-economic status of the city populace and the
characteristic features of the urban landscape.The 21st century may be described as the
century of cities. Since the beginning of this century, the urbanized population
exceeded the rural population (World Urbanization Prospects, 2014). From the
economic perspective cities play a major role with the urban areas contributing more
than 80% of the global GDP (McKinsey Report, 2011). Concentration of activity in
one place and creation of opportunities attracts people to cities. Along with growth,
cities experience several environmental and social issues. The social and economic
nature of advantages of life in a city include better access to goods and services, easy
transportation and job opportunities with higher earnings.

Hyderabad suffered from long periods of political stand off's during the
Telangana protests. In spite of such unrest, Hyderabad overtook Bengaluru in terms of
creation of jobs and growth in per capita income. US based Brookings Institution
reports that the growth of per capita income in Hyderabad was 5.2% in 2009-2014 as
compared to Bengaluru's 4.8% and its significance increases due to the backdrop in

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which it occurred. The development of the IT sector encouraged establishment of IT
companies prior to 2009 and the impact is felt during 2009-2014. The City of Pearls
has also come to be known as "Genome Valley of India" thanks to the presence of
pharmaceutical and biotechnology industries, and as "Cyberabad", as it has turned out
to be a global centre of information technology. Hyderabad thrives in several
unorganised economic sectors as well. The GDP of Hyderabad was 16 billion US
dollars in 2010 which is expected to rise to about 74 billion US dollars by 2025. A
sharp rise in per capita GDP from $5000 to $13000 is also anticipated (Silicon India
News, 2012). Migration to Gulf countries and the west has led to some amount of
Westernization and Arabization, in turn leading to a shift in values and orientation
towards global lifestyles. The urbanization process is an on-going process that has
resulted in depletion of ground water levels, denser population, air and water pollution
while changing the socio-economic scenario of peri-urban areas. The objective of this
chapter includes socio-economic assessment of the population and their perception
regarding changes that occurred due to urbanization,in fields such as infrastructure
facilities, transport facilities, job opportunities, income levels, pollution and impact on
health, water availability, housing and standard of living.

8.2 RESEARCH DESIGN AND METHODOLOGY

The Survey research design has been followed employing both primary and
secondary data. Questionnaire survey was administered for collection of primary data
while secondary data was obtained from existing literature like journals, periodicals
and Census data. The design was descriptive and the main purpose was to explain the
socio-economic situation of the people of Hyderabad city under the jurisdiction of
Hyderabad urban agglomeration. The survey method was adopted and data was
collected from field by conducting personal interviews of the respondents. Probability
sampling method was adopted using proportionate stratified random sampling process.

8.3 UNIVERSE AND UNIT OF STUDY

The universe of the study included all the households in Hyderabad city and a
single household was considered as unit of study.

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8.4 SAMPLE SIZE
Door to door survey was conducted in areas surrounding GHMC (Greater
Hyderabad Municipal Corporation), which were brought into the urban limits in the
last decade. Figure 8.1- 8.3 gives the images of the areas covered in the survey. The
respondents were asked questions related to living conditions prior to urbanization and
post urbanization. The number of respondents required for the survey was estimated
using the Slovin's formula (equation 8.1)
𝑛 = N/(1 + N ∗e2) ....................Equation (8.1)
where N = the population size,
n= the number of respondents,
e = margin of error

Figure 8.1: Overview of study area on google map, to identify various zones for door
to door survey

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Figure 8.2.a: Southern part of study area, Umdanagar Figure 8.2.b: Western part of study area, Pattancheru
and Brindavan Colony and Ramachandrapuram (for door to door survey)

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Figure 8.3.a: Northern part of study area, Medchal
Figure 8.3.b: Eastern part of study area, Ghatkesar

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 A total of 202 respondents (households) were surveyed forming a margin of
error of + or - 7% or a 93% level of confidence. The city municipality area has an
astounding 0.507 million slum households and 2.27 million slum dwellers which
constitutes nearly 30% of the total population (Census, 2011). The sample was hence
drawn from 142 households in the planned housing areas while 60 households were
selected from slum areas.

8.5 LIMITATIONS OF THE STUDY

The political situation being volatile due to the recent bifurcation of the state,
the respondents were highly apprehensive and suspicious and not forthcoming in
divulging information. The questionnaire had to be so modified as to collect as much
information without inducing any cause for suspicion or conflict. The slum area
respondents were interested to know as to what would be their gain by divulging
information. The respondents belonged to both Telangana and residual Andhra
Pradesh and some of them were reluctant to divulge accurate information for fear of
eviction. These are some of the limitations of the study.

8.6 DATA ANALYSIS

The surveyed regions included Medchal and Malakpet to the north of the city,
Ghatkesar and Kondapur to the east, Shamshabad, Umdanagar and Brundavan Colony
to the south and Pattancheru, Serlingampally and Gachibowli to the west (as shown in
figures 8.1, 8.2 a,b, 8.3 a,b). 63 % of the respondents were male while 37% were
female. Questionnaire was prepared in such a way as to compare the living conditions
before and after urbanization. An astonishing 52% of the respondents preferred rural
surroundings to urban while 31% preferred urban surroundings and 17% preferred
semi-urban environment. 76% of the respondents agreed that the cost of living has
gone up due to urbanization while 50% believed that their standard of living was of
moderate level and reported no change due to urbanization. 83% reported
improvement in transport facilities while 66% believed that the income levels
remained moderate and did not change due to urbanization. 60% of respondents felt a
rise in pollution levels, but most reported of no consequential health issues. Water
problem has risen tremendously as 69% of respondents believed while 74% reported
steep hike in house rents. The Hyderabad metropolitan water supply and sewerage

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board has itself admitted to a shortfall of 140 MGD (million gallon per day) or 530
MLD (mega litres per day) in its water supply capability. There seems to be a marginal
rise in job opportunities as 61% prior to and 46% post urbanization felt a lack of job
opportunities. In this regard the bifurcation of the state and the sharing of the capital
has added to the confusion and multiplied the woes of the public. A graphical
representation of the survey results is presented in figures 8.4.a&b.

Before Urbanization

Job Opportunity 61% Low

9

House Rent 57 % Moderate

8

Water Problem 45 % Moderate

7

Health Issues 57 % Low

6

Pollution 48 % Low
5

Income Levels 60% Moderate

4

Transport Facility 59 % Moderate

3

Std of Living 59 % Moderate

2

Cost of Living 57 %Moderate

1

0 10 20 30 40 50 60 70

Figure 8.4.a: Survey results of living conditions prior to urbanization

After Urbanization
Job Opportunity 46% Low
9

House Rent 74% High

8

Water Problem 69% High

7

Health Issues 43% Moderate

6

Pollution 60 % High
5

Income Levels 66 % Moderate

4

Transport Facility 83 % High

3

Std of Living 50 % Moderate

2

Cost of Living 76 % High

1

0 20 40 60 80 100

Figure 8.4.b: Survey results of living conditions after urbanization

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8.7 CONCLUSION
The door to door survey presents interesting results. The positive outcomes of
urbanization are the improvement in transport facility and a marginal rise in job
opportunities, while the negatives piled up against it include water problems, increased
pollution levels and cost of living, apart from increased house rents to be shelled out
by people who do not own a home. A concerted effort on the part of Government and
Private agencies is necessary to mitigate the harmful effects of sprawl and
urbanization.

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