Urban and rural neighbourhoods across India show a high degree of segregation based on caste and religion, with marginalized like SC and Muslims facing significantly poorer access to public services, according to a new working paper by the Massachusetts-based nonprofit, National Bureau of Economic Research. The study, titled “Residential Segregation and Unequal Access to Local Public Services in India: Evidence from 1.5 Million Neighborhoods”, draws on data from 1.5 million Indian neighbourhoods and highlights structural disparities affecting Scheduled Castes (SC) and Muslim communities.
The research found that segregation in India’s cities and villages is comparable to racial segregation in the United States. Around 26% of Muslims live in neighbourhoods that are over 80% Muslim, while 17% of SCs reside in areas with more than 80% SC population. Segregation levels for SCs are similar in both urban and rural areas, while Muslims face even higher isolation in urban environments.
Marginalized Neighbourhoods Receive Fewer Public Services
The study also reveals a striking inequality in public service provision. Secondary schools, clinics, hospitals, electricity, water, and sewerage facilities are consistently worse in marginalized neighbourhoods compared to other areas within the same city. The authors describe these differences as “statistically significant and substantial,” showing how social identity directly shapes access to basic services.
“Our paper presents a national-scale analysis of segregation and access to public services in India’s urban and rural neighborhoods,” the authors wrote. “India’s rapidly growing cities, considered to be engines of upward mobility, to a large degree have replicated the caste and religious disparities of its villages.”
The research indicates that children growing up in highly segregated areas are likely to experience worse educational outcomes. A child in a 100% Muslim neighbourhood, for example, can expect about two fewer years of schooling than a child in a 0% Muslim neighbourhood. Children from SC-dominated areas also face educational disadvantages, though slightly smaller. The study estimates that neighbourhood effects explain nearly half of the urban educational gap for SC and Muslim children.
Segregation Patterns Mirror Global Contexts
The authors Sam Asher, Kritarth Jha, Anjali Adukia, Paul Novosad, and Brandon Tan note that while the data largely dates back to 2011–13, the patterns of residential segregation have likely persisted over decades of migration and policy influence. The urban segregation of Indian Muslims is slightly lower than Black segregation in the US, yet higher than in Brazil and some European cities.
The paper observes, “Concentration of marginalized groups and unequal provision of public services are persistent characteristics of the political economy of many countries. Modern India has had few of the state policies that contributed to racial segregation in the United States, but housing discrimination is widely documented and has sometimes been tolerated by the judiciary.”
Causes and Implications
The study discusses several factors contributing to segregation, including social preferences for living among members of the same community, economic constraints, and discriminatory practices by landlords and housing sellers. These forces often concentrate poorer populations in areas with fewer amenities, compounding inequality.
“Any discrimination in state service provision, whether against the poor or marginalized groups, further exacerbates disadvantage,” the authors said. They also highlighted that improving access to public services in marginalized areas has historically occurred alongside political mobilization and the creation of parties representing these communities.
The researchers caution against assuming that disparities are due to low demand or disinterest in public services among SC and Muslim communities. Evidence suggests that both communities actively seek better services but often cannot extract them due to systemic neglect and political marginalization.
Call for Policy Intervention
The paper concludes that India has an opportunity to make different choices than past examples from the US, where decades of segregation limited access to opportunities. By documenting residential segregation and associated disparities in public service access, the study urges policymakers to prioritize inclusive urban planning and equitable service delivery.
The authors focus on three key areas for future research: understanding whether segregation is driven by discrimination or social preference, why segregated neighbourhoods receive poorer services, and the causal impact of living in such areas on economic and educational outcomes.
