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Urbanization is an important index of socio-economic structure of a region as urban centres have a special role to play in its development. In a statistical sense, urbanization connotes to the ratio of urban population to the total population size, its characteristics and the administrative setup of a particular area. Statistics reveal that nearly half the world's population lives in cities. Between 1960 and 1992 the number of city dwellers worldwide rose by 1.4 billion. Most of these city growth has occurred in developing countries, where the number of people living in cities is increasing every year. Cities with more than 10 million inhabitants are known as megacities. It is predicted that by 2015, 22 of the 27 mega cities would be in developing countries. Historically, the city was the place where the arts and sciences were flourishing. Democracy was a new type of governance that found its seedbed in the city and still nowadays political power is largely concentrated in cities and governments have established their premises in cities. The administrative functions are usually executed in the capital cities of countries. The city is the market place for economic activity.