With the rapid pace of urbanization, the percentage of India’s population living in cities and urban areas has almost doubled to 27.8% from 14% at the time of Independence. This is expected to accelerate even further, and by 2021 over 40% of Indians will be living in urban areas. Indian cities provide settings as engines of growth, and at the same time face enormous challenges.

Many initiatives are being taken up by the Central, State and Local / City Governments for addressing the urban challenges, including the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) of the Government of India, which aims at creating economically productive, efficient, equitable, inclusive, sustainable and responsive cities. The massive funding from the Central & State governments amounting to Rs. 1000 billion (USD $25 billion) over the period 2005-2012 will contribute substantially to creating improved urban infrastructure and housing.

The urban sector scenario in India is thus going through a dynamic phase of reforms, leading to fast-paced improvements in infrastructure through Large - scale massive investments.