Using the Pareto distribution, this paper estimates the size distribution of metropolitan areas in India from 1981 through 2025. Empirical results offer evidence for dispersion of metropolitan population size, notwithstanding the growing concentration of urban population in metropolitan areas as compared to non-metropolitan areas. The economic importance of metropolitan size dispersion is analysed with respect to levels of employment, consumption expenditure and poverty and for select years since 1987–88. The implications of these results are explored for national urban development policy, as they are related to the competitiveness of smaller metropolitan areas to attract national and global business and investments.