Urbanisation in India is usually perceived as the problem of huge metropolises. The focus of this paper is on small conurbations in which specific urban dynamics emerge and contribute also to the current urban transformations. One of them, Kartarpur, is a small cluster-city of craft woodworkers. It shows both the dynamism and the fragility of this non-metropolitan urbanisation. The remarkable expansion of a small furniture industry is linked with endogenous factors rooted in a specific territory, far away from metropolitan development schemes. The analysis shows how a territorial cluster of local craftsmen, putting together their traditional know-how, allowed the creation of a real added-value which is upset by current neo-liberal evolutions.