India’s total urban population was the second largest in the world at 508 million in 2022; Only 36% population classified as urban: Economist

Indian 500 rupee notes lie on the cashier counter of a branch of HDFC Bank in Mumbai
Indian 500 Rupee notes. (Image: MeelBijendra/Gitika)

Urbanization is one of the most important pillars of India’s development story. India’s total urban population at 508 million in 2022 was the second largest urban population in the world, second only to China.

However, only 36% of India’s population is classified as urban, while the global average is around 57%. It is the pace of urbanization of India which is a major trend driving India’s economic growth. Currently, the urban population contributes 63% to India’s GDP.

Going forward, it is estimated that 37% (541 million) of India’s population will live in urban centers by fiscal year 2025.

Also read: India aims to achieve 30% EV penetration in private cars, 70% in commercial vehicles and 80% in two and three wheelers by 2030

This trend is expected to continue with about 41% and 50% of India’s population expected to live in urban centers by fiscal 2030 and fiscal 2050, respectively.

India is the second largest urban system in the world, with about 11% of the total global urban population living in its cities.

Also read: Retail sales contribute $787 billion to India’s GDP, with staple food consumption accounting for $125 billion