Urban Proximity and Spatial Pattern of Land Use and Development in Rural India

Using non-parametric methods and India Human Development Survey 2004-2005, this study analyses the effect of urban proximity in terms of distance and connectivity on spatial pattern of land-use and development in the context of rural India. We find that, in urban surroundings, rural areas have diversified economic activities, intensive agriculture with higher spending on various inputs, higher economic wellbeing in terms of wages, income and consumption expenditure. We also document that transport and tele-connectivity are important for improved rural-urban linkages and changing rural landscape. These findings suggest that urban settlements are keys to development and inclusive growth in rural areas.