Observers in the past decades have commented on increased urbanization in India, which has led to new challenges for development, housing, and labor. But the majority of India's population, and thus electoral power, remains in rural regions.
In a 2018 article, SAI BALAKRISHNAN examines how agrarian political power manifests in urban spaces, looking to real estate markets in Mumbai.
From the paper:
"The electoral power of the agrarian countryside is evident in the relationship of Mumbai to its hinterland. India is the second largest exporter of sugar in the world and more than 40% of India’s sugar exports come from the western Maharashtra region. Sugar production in the region is organised in the form of cooperatives. These sugar cooperatives have been heavily subsidised by the state: 90% of sugar cooperative finances came from state-guaranteed cooperative bank debt; over three quarters of the equity was a direct handout from the state budget. It was Mumbai’s thriving industrial economy that was the source of sugar subsidies. Mumbai’s industrial classes tolerated the diversion of capital from the city to the countryside, as they understood that the state government legislators relied on the peasants for their votes, and that capital diversion was the price to be paid for the political stability from subsidised agrarian prosperity.
In a market-oriented urbanising economy, these elites continue to influence the making of urban real estate markets by flexing their regulatory muscle. The price of a plot of land increases when it is well connected to roads and transport networks, when it has uninterrupted water supply, when it can rise high in the air and thus maximise development rights. Politicians control these road, water and air resources, and in a context where local governments are not yet fully empowered as decisionmakers, state-level politicians wield immense control over resources that get capitalised into the price of land."