I don't think you realize that even though that China urbanization is far from 100% efficient, it has been largely successful in its main goal. Putting roofs above millions, enhanced mobility, infrastructure for the market, wide-spread education and better life circumstances.
You Indians remind me of the people in Belgium who are saying the NMBS (belgian railroad) is crap caus it runs every year a profit loss (just like the Chinese railroad). But they are forgetting that the NMBS (and I'm pretty sure the Chinese railroad too) aren't made for profit but to move goods & people around. It's very easy to make the NMBS profitable, just scrap all unprofitable lines, stops and retire the small town stations. The downside is that people can't get to their jobs or have to rely on cars, just a general lowering of mobility. So even though the Chinese railroad system runs massive losses the government knows it's all worth it, in exchange people can travel all through China for jobs, less cars, less pollution, less highways etc...
Same thing can be said for the Chinese infrastructure. Yes it creates debt yes it there are ghost cities but in the end people have a roof and the areas create much more industry