Although there were a few cities as early as 4000 B.C, these cities were generally small. Most of the world’s population is now living in urban areas and this is predicted to increase in the next few decades. For the first time in history the majority of the world’s population is living in urban areas. As humans change so do their working and living environments. In contrast to agrarian rural settings cities are characterized by their mass production, marketplaces and service industries. It is not only the visible aspects of working and living environments that change but also their intangible qualities such as their intellectual assets, vibrancy, creativity, and shared identity. Typical urbanites now have more opportunity and choice than their ancestors had before. This study looks into the various factors which have influenced the development of a city and those that led to its downfall. The study gives a critical analysis of urbanization and industrialization and its influence on modern cities. It looks into the development and evolution of Indian cities over the various eras and critically analyses an Indian city like Mumbai for a better understanding of the various factors influencing the development and detoriation of Indian cities