The recent third world urbanisation is concentrated in the rural peripheries of the largest cities and its implications for land and livelihood in the peri-urban areas is discussed in this article. In an attempt to understand the extent to which the rural workers residing in the vicinity of the six largest metropolitan cities in India have been able to negotiate with the emerging changes in the structure of available work and shrinking natural resource base, it has been observed that following the economic reforms, there has been clear indication of marginalisation of workforce in the districts around the metropolitan cities at a higher degree relative to the respective states.