This paper focuses on growth and changes experienced by smaller urban places as a result of India’s 1991 official policy reforms aimed at economic liberalization. Section 1 introduces the structure and scope of the paper. Section 2 highlights the nature of urban growth and delineates the broader context of India’s urbanization using census data and UN statistics. Section 3 examines the economic structure of India’s urban areas using National Sample Survey (NSS) data to highlight its continuities and emerging characteristics. Section 4 reports a field study of a small town in India’s poorest state to exemplify the dynamics of change in the lower strata of the urban system. Section 5 identifies the major trends, and considers their future implications.

Paper presented at the INDAS International Conference, ‘Actualities of Indian Economic Growth at Rural-Urban Crossroads’ held at Tokyo University (Hongo Campus), December 15–16, 2012.