1. Increase in infrastructural facilities:

• Due to urbanization, infrastructural facilities like education, health, banking, transportation, communication, insurance, electricity, etc. keep on increasing in the urban areas.
• Development and maintenance of these facilities create more employment opportunities. When people get employment their purchasing power for goods and services increases. This increases demand for goods and services which in turn leads to setting up more industries.
• Thus, the cycle of setting up of more industries
• Creation of more employment opportunities
• Rise in income and rise in purchasing power
• Rise in purchasing power necessitating the setup of new industries. This cycle keeps going on.

2. Reduction in poverty:

Poverty and unemployment are mutually related. Due to urbanization, industry and service sector creates large scale employment in cities which reduces poverty.

Moreover, rural poor and unemployed who come to urban areas get employment according to their capabilities and skills. This also helps in reducing poverty.

3. Cultural development:

Cities have well-developed educational facilities that too for various discipline. People take benefit of these facilities and gain overall development which in turn helps in establishing a rich cultured society.

Libraries with modern amenities, book stalls and various cultural programmes that take place in cities enrich people culturally.

4. Ultra-modern health services:

Rise in urban population demands more and better health-care facilities. Today, we can see number of multispecialty hospitals flourishing in cities like Ahmedabad where ultra-modern treatment is available for every disease at one place.

Along with private hospitals, government and local self-government institutions also set-up hospitals for the benefit of the poor and the middle class. Better health facilities create a positive impact on the health and the productivity of people.

5. Social effects – modern thinking:

Cities have better education, cultural development and modern means of communication. As a result, the thinking of urban population is modern compared to villages.
Migrants from villages quickly adapt themselves to the modern world by having a decent and polite approach.

6. High standard of living:

Urbanization increases the income of people. This combined with the growth and development of modern infrastructural facilities makes the standard of living of people higher as compared to those living in rural areas.