Urban India is in the midst of a transformation. In an era of economic reforms, liberalisation and globalisation, cities and towns are emerging as the centres of domestic and international investment. This is primarily due to their advantages of aggolmeration and the economies of scale and scope. The cities have been the locations of industrial and commercial activities and seats of government. Further, modern educational, health and entertainment facilities are most plentifully available at the city locations. Being the reservoirs of skill, they offer a wide range of specialised services, including legal, financial, marketing, banking, insurance etc. In spite of the congestion diseconomies and the hazards of city life, cities work and continue to be productive. In fact, estimates reveal that Urban India at present contributes more than 50 percent of the country's Gross Domestic Product although it contains less than one-third of its population. In this background, urban development policy calls for an approach that aims at optimising the productive advantages of cities and towns, while at the same time minimising or mitigating the negative impacts of urbanisation.