India is witnessing a big change: small towns are growing rapidly while large cities struggle. Out of nearly 9,000 towns, only 500 are large cities. Most have populations under 1,00,000. From the 1970s to 1990s, big cities like Delhi and Mumbai led industrial growth. But now, metros face high land prices and poor infrastructure. Small towns such as Sattenapalle, Dhamtari, and Barabanki are becoming key for logistics, agro-processing, and services. These towns provide jobs for migrants and rural youth but rely heavily on informal work with little security. Problems include tanker water economies, overused groundwater, and weak governance. Urban schemes mainly focus on metros, leaving small towns underfunded and poorly planned. Municipalities lack funds and staff, and planning often ignores local needs. Tikender Singh Panwar, Kerala Urban Commission member, says, "Small towns must be acknowledged as the primary frontier of India’s urban future." He calls for better planning, empowered municipalities, and regulated capital to ensure fair labour rights and sustainable growth. Whether small towns reduce inequality or deepen it depends on political will and action.