Ambedkar viewed urbanisation as an instrument for breaking down the rigid caste-based system prevalent in rural areas. However, the extent to which this holds true in contemporary India raises questions over whether people in urban settings can truly transcend the influence of the entrenched caste system. This paper examines the persistent issues of occupational segregation across gender and socio-religious groups in India’s six megacities. First, the paper measures and analyses the levels of occupational segregation across different gender and socio-religious groups, using relevant indices and segregation curves. Second, it assesses the factors contributing to occupational segregation within local markets, with a focus on socio-economic and demographic variables based on regression models. The analysis reveals that caste and religion continue to exert a stronger influence on occupational segregation than gender per se, with the SC/ST and Muslim communities—particularly women—facing the highest levels of exclusion. The study underscores the need for intersectional approaches to policy-making for addressing structural barriers and promoting equitable access to economic opportunities in urban India.