Abstract Urbanisation is one of the most significant mega trends shaping the world in the 21st Century. With the Number of people moving into the cities each day it is expected that by 2050 66% of the world’s population will be living in urban areas and 18%of the world’s urban population will be from Indian cities. The tremendous phase in transformation from developing country to a developed country , achieving equitable and sustainable of the cities is a crucial component for a livable future. The developments intended to emphasis the dynamic ability of cities to create new jobs and economic opportunities. At the same time the role of the cities in attaining the agenda many a times has neglects the informal economy. The notions continued to believe that the informal economy in developing countries would disappear once these countries achieve sufficient levels of economic growth and modern industrial development. It has to be understood and accepted that informal economy can no longer be considered as a temporary phenomenon.Furthermore, the informal economy has been observed to have more of a fixed character in countries where incomes and assets are not equitably distributed.This paper examines the Urban policy reforms through which the urban informal economy puts forth in the transformation focusing on street vendors. Keywords: Economic growth, Informal economy, Street vendors, Urban policy reform, Urban development Introduction Informality has become a dominant feature