According to the census of 2001, 742 million people live in rural areas and 285 million in urban areas in India, comprising 72.2% and 27.8% of the population, respectively. The ratio of the urban to rural population is not as high as in many other countries. However, urbanization in India is rapidly proceeding, especially in cities like Mumbai, Kolkata and Delhi, which already have several million residents each, and continue to grow. Many urban problems exist in these cities because most of them are overcrowded. The government has prepared urban planning strategies to resolve the issue of over-urbanization and to control growth. Furthermore, the government has a policy of forcing some industries to relocate to rural areas in order to dissolve regional disparity. The purpose of this paper is to give a clear perspective of urban planning and development in India. Delhi had primarily been a political city, but has become increasingly industrialized. After India gained independence, Delhi's population increased rapidly and many industries have become established there, which resulted in a lot of serious urban problems due to overcrowded conditions. The government established the DDA (Delhi Development Authority) in 1955, and DDA presented the Delhi Act in 1957. Furthermore, DDA created master plan for Delhi to disperse population and industries. DDA planned to build DMA towns, which are satellite cities like Gurgaon and Faridabad in the surrounding area. In addition, the government has restricted the locations for new factories in Delhi. However, these policies had the unwanted effect of increasing regional disparity because population and industries concentrated in the Delhi metropolitan area. The central government had to prepare a new policy. The government established the NCRPB (National Capital Region Planning Board) in 1985 to force industries to relocate from Delhi and encourage economic development in rural areas. However, the NCRPB's region of responsibility was the NCR (National Capital Region) with the e