This paper questions the frequently posed thesis of India being overurbanized. The diverse connotations of the term "overurbanization" have been taken into account and tested against the Indian reality. It is concluded that on a net balance of positive and negative effects emanating from urbanization, there is no reason to believe that India is urbanized to an extravagant degree. Any continued adherence to the "overurbanization" thesis is likely to distort our perceptions about the vital role which Indian urbanization is playing in economic growth.