India is experiencing a major economic development, especially since the 1990s is inherently related to the urbanization process. It is estimated that India will be 50 percent urban by 2050 and produce more than 70 percent of GDP. In this urban transformation often overlooked dimensions is the growth of small cities and towns. Small cities and towns are often neglected due to their small size in population and contribution to economies that not only bypass-built environment but also the market forces, State projections and citizen aspirations. This paper focus on the transformation that has happened in small cities since 1991 in terms of built environment. In particular, this paper examines the ways in which smaller cities and towns employ the State strategies and market as a driving force to expand the built form. For this purpose, the paper draws on case-study material from Mandi, Himachal Pradesh, India. In doing so, it explores how a new range of rental housing and business outlets are emerging that not only cater for the floating and working population but also aspires others to construct new structures within and outside the city administrative boundaries. The structures coming up are being used for both residential and commercial purposes. The paper discusses how the state projection and market forces are creating a large pool of opportunities for citizens to invest in land market and rental housing. The paper underscores that rising demand for rental housing and commercial space is expanding the built form of small cities and towns. The paper expands on towns like Mandi have little importance at the national level. However, looking at its urban processes divulges into the micro-level aspect of urbanization at the local level that contributes towards an understanding of India's urban transformation, particularly in small towns.
