The development that is taking place in India is confined only to the cities. In rural areas there is hardly any development. So people who are trained are finding employment in the cities. Unskilled too are finding employment only in the cities. And they are getting employed as cooks, maids, sweepers, drivers etc. they are getting better paid here in the urban areas than in their villages. So i guess small towns, may not be economically feasible. Each district headquarters or any big town should be developed as an independent entity and go in for industrialisation and allow it to grow as big cities parallel to the already existing cities. The people who are dependent on agriculture can find alternative and paying employment. These people need not go to already developed over populated cities, but to these new developing cities. As of now the rural people are hardly ready for this change over, they need to be properly trained before they settle down in cities. Its really pathetic to see these people come to cities and settle in menial jobs. We have to realise that the farm sector can hardly sustain so many people, and despite so much progress made in the farming, it is unable to increase their standard of living. We need the govt, NGO's and voluntary organisations to help these people by training them in some skills, so when they go to cities they are well prepared. But ofcourse, creating new cities, does have its own environmental issues, like water, pollution, deseases etc.