In the mainstream international development discourse, one often finds a general dualistic outlook in classifying the concept of (urban) informality, seen to be strikingly different from the formal, regulated economic arrangements. Earlier definitions explaining informality in context of market arrangements across the Global south often failed to present a cohesive, inclusive framework vital for analysing (urban) informal, socioeconomic arrangements as an integral part of rapidly urbanizing developing economies. This essay seeks to examine the extent of this epistemological conflict while reviewing some of the classical studies on urban informality. We argue how an inclusive framework to urban policy planning is needed to avoid a broader generalization of the subject. Since the developing countries of South and South East Asia constitute a large share of workers being employed in the informal market arrangements; an inclusive perspective in understanding informality is warranted and emphasised upon in this essay.