INDIA IS FAR MORE URBAN IN ECONOMIC AND FUNCTIONAL TERMS THAN OFFICIAL DEFINITIONS SUGGEST: ECONOMIC SURVEY 2025-26

• Economic Survey 2025-26 (Ministry of Finance) argues that India is far more urban in economic and functional terms than the Census definition captures — cities are "critical economic infrastructure," not just residential clusters.
• Urban areas already generate ~70% of GDP and are projected to house 600 million people (40%) by 2036, up from 31% in 2011.
• Focus shift: future urban policy must prioritise "system performance over standalone projects" — efficient functional regions rather than siloed schemes.
• For UPSC: links GS-III (infrastructure, growth), GS-I (urbanisation), GS-II (governance, 74th CAA) and current schemes (PMAY-U, AMRUT, SBM-U, PM e-Bus Sewa).