In recent times rapid growth in urban population in the developing nations has been accompanied by a parallel growth in the incidence of urban poverty. The objective of the paper is to estimate the incidence of poverty and inequality in urban India during the last three decades using Parameterized Lorenz curve methods. Then using panel regression the study examine how the incidence of urban poverty is being affected by various socio economics factors in urban West Bengal, a state located in eastern India. The study is based on the unit level consumption expenditure data of different rounds of National Sample Survey Organisation(NSSO). The study reveals that the incidence of urban poverty have been quite high for the states of India during the earlier periods as compared to the latter periods. In case of West Bengal the decline in urban poverty is associated with a faster pace of urbanization, small size of the household, decline in urban inequality, growth in per capita industrial income and rise in per capita public expenditure on education and health. Finally the study tries to propose some appropriate policies for reducing urban poverty in the state.