As per the Census of India, a town is defined by several criteria, and one that does NOT fit the definition is:
More than 75% of the population engaged in the primary sector.
A Census Town is an area with urban characteristics like
A minimum population of 5,000
At least 75% of the male main working force engaged in non-agricultural activities
Population density of at least 400 persons per km²
As per the 2011 Census, there are 3,784 Census Towns against 1,362 in 2001.
A Statutory Town is one with a municipality, corporation, cantonment board, or notified town area committee.
As per the 2011 Census, there are 4,041 such towns as against 3,799 in 2001.
Conversion of Census towns into statutory ULBs entitles states to Central assistance as per the guidelines of the 14th Finance Commission