India’s increased pace of urbanisation is evident, but the question remains as to whether India can harness its developmental potential by providing social infrastructure to meet its projected growth. This paper investigates the urbanisation trajectory with respect to the provision of social infrastructure in the Capital Region of India. First, it applies the differential urbanisation model and predicts counter‐urbanisation to be the next stage of development. Second, using socio‐economic indicators, the paper finds high literacy rates and non‐agricultural employment in small towns. Third, it explains deconcentration of large cities as an outcome of congested social infrastructure provision. Fourth, it determines that small towns continue to have poor provision of social infrastructure. This paper recommends the integration of spatial planning with social infrastructure planning, the empowerment of lower‐tier authorities for social infrastructure delivery, and measures for raising local government revenue in the region and in similar regions throughout the Global South.