LiveMint carried a piece on the pertinent question of "How much of India is actually urban?" using data from IDFC work on Urbanisation. Excerpts below:
"Under the census definition, 31% of the Indian population lived in urban areas in 2011. But the share of urban population which lives in towns and cities, actually classified as urban, and governed by urban local bodies is even lower at 26%. Even if one were to discount the satellite data, just relaxing the census definition, and considering settlements with more than 5,000 inhabitants as urban will raise the share of the urban population to 47%."
Read the full article here.