The correct answer is All of the above. Explanation & Key Takeaways: India's Urban Challenges - • Urbanization is an integral part of the process of economic growth. • As in most countries, India’s towns and cities make a major contribution to the country’s economy. • Urbanization in India has expanded rapidly as increasing numbers of people migrate to towns and cities in search of economic opportunities. • Slums now account for 1/4 of all urban housing. • In Mumbai, for instance, more than half the population lives in slums, many of which are situated near employment centres in the heart of town, unlike in most other developing countries. • Critical issues that need to be addressed are - • Poor local governance • Weak finances • Inappropriate planning leads to high costs of housing and office space; in some Indian cities these costs are among the highest in the world • Critical infrastructure shortages and major service deficiencies that include erratic water and power supply, and woefully inadequate transportation systems • Rapidly deteriorating environment • Hence the correct answer is option 3.