India has the second largest urban population in the world
Increasing Urbanization
Presently  300 million people live in urban areas which is around  30% of India’s population of 1.12 Billion.. By 2030, this share is expected to rise to 40.9% of the population, or around 574 million people.  With rapid urbanisation in India, around 45% of India’s population will be urban by 2050, up from 30% at present, Indian’s cities will add 380-million people in the next 40 years, more than the entire US population currently. The rapid urbanization has put urban infrastructure under severe strain in India. Urban areas present a grim picture with regard to availability of safe drinking water,losses in water system,inadequate sewerage system,absence of solid waste management,inadequate roads, bridges, railways, seaports, airports, power availability,urban transport,health care

Source:UN2002.

Essential infrastructure facilities need to be provided to this growing urban population.The country has over 3,700 towns and cities. The urban population of the country has been growing at a rapid pace of over 31 per cent over the last decade. This is significantly higher than the growth of the rural population (approximately 18 per cent). Employment in urban areas registered a growth of around 38 per cent (over the last decade), substantially exceeding the rural employment growth rate of around 16 per cent. A large number of Indian cities and towns need adequate infrastructure facilities, specifically in the areas of water management, roads, transportation, housing, sanitation, sewage etc. The government has initiated a number of steps to improve the physical and economic infrastructure and improve facilities in urban areas. In addition to the basic infrastructure projects, a number of urban transportation projects have also been taken forward, e.g. metro rails.

 Impact of Poor Urban Infrastructure

 Poor urban service coverage is the main hindrance to India’s ability to attract investments which in turn promotes economic development. The poor urban infrastructure hampers economic growth,lower corporate investments and affects country’s global competitiveness.

Causes of Poor Urban Infrastructure

The major causes of poor unban infrastructure are Rapid urbanization,increase in income levels, gradual reduction in State/ Central Government grants, Poor Financial position of ULBs(Urban Local Body) Limited access to borrowed funds.