Urbanization is a concept and a continuous process defined as the shift of a country's population from rural to urban areas, leading to the growth and expansion of cities and towns. This transformation is driven by economic and social changes, with urban centers acting as magnets for better economic opportunities, higher wages, and improved access to education and healthcare. The process has a long history in India, with the first urbanization dating back to the Indus Valley Civilization (c. 3300 BCE to 1900 BCE). However, the modern acceleration began after independence in 1947, fueled by industrialization and the adoption of a mixed economy.
The mechanism for classifying a settlement as urban is defined by the Census of India, which requires a minimum population of 5,000, a population density of at least 400 persons/square kilometre, and at least 75 per cent of the male main working population engaged in non-agricultural pursuits, in addition to all statutory towns.
The concept is intrinsically connected to the 74th Constitutional Amendment Act, 1992, which institutionalized Urban Local Bodies (ULBs) to manage urban governance. It is operationalized through flagship schemes under the Ministry of Housing and Urban Affairs (MoHUA), such as the Smart Cities Mission, the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and the Pradhan Mantri Awas Yojana (Urban). Recently, the focus has shifted toward sustainable urbanization and planned development of peri-urban areas. This includes promoting city-level transit-oriented development (TOD) plans and strengthening the financial autonomy of ULBs through municipal financial reforms like property tax collection.