The slum is often used to describe informal settlements within cities that have inadequate housing and miserable living conditions. They are often overcrowded, with many people crammed into very small living spaces. Slums are not a new phenomenon. They have been a part of the history of almost all cities, particularly during the phase of urbanisation and industrialisation. Census of India 2011 reveals that countries urban population in 2011 as 377.1 million i.e. 31.16 % of countries population which is projected to double and reach 600 million by the year 2030. Urbanisation is the centre of economic growth. According to Central Statistics Office (CSO) estimates that from 1970-71 to 1999-00 urban India, GDP share increased from 38% to 52% and mid-term eleventh five-year plan estimates 2009-10 urban India GDP share at 62-63% which is projected to rise 75% by 2030-31. While urban centres were the key place for economic development, there is a more extensive section of city or town which lives in misery especially urban slums who were bypassed in this economic growth. According to 61st round data of NSSO urban population registered an increase of 44 lakhs from 1993-94 to 2004-05 and according to Press Note from Planning Commission, 2012 Urban poor population in 2009-10 were 76 million. This increasing population in urban centres of the country lead to economic disparity leading to over-crowding, unsanitary condition, lack of essential amenities like sanitation, drinking water, education, waste management etc. and low living status. As according to the census of India 2001 and 2011, the total population of India changes from 238.4 to 1210.5 million from 1901 to 2011 which is almost five times increase in population. Rural population increased from 212.6 to 833.4 million from 1901 to 2011 which is 3.92 times increase from 1901 while the increase in the urban population varies from 25.8 to 377.1 million which is 14.6 times of 1901 urban population. Thus, census data suggest a huge increase in urban population in the last century. The decadal change in urban population and slum population from1981 to 2011, the data has been taken from census of India 2001 and 2011 from data it is evident that with increase in urban population there is increase in slum population from 1981 to 2011 urban population registered 2.4 times increase in population and slum population registered 2.34 times increase in population. It suggests that urbanisation does not only includes the growth of society with all facilities and a high standard of living, but it shows the same rate of increment in the population living in misery. In Gurugram (Haryana), the reason for slum formation is very much apparent, i.e. unfavourable agricultural changes, low employment and prospects in rural India. The solution of slum problem and their improvement does not lie standalone in transferring slum- dwellers into the multistoried building, but it needs an overall growth of slum people in term of every aspect of their social, economic and healthy life. In Gurugram, slum development needs an inclusive growth where public and private player work together more effectively and flexibly.