COVID-19 is the most recent pandemic that has invaded every part of the world, especially urban areas. Adopting an epidemiological perspective, some scholars have argued that the agglomeration of people in dense urban areas is a primary reason for the outbreak of contagious diseases like COVID-19. Based on an economic perspective, this paper empirically examines the effect of density on COVID-19 infection and mortality rates in India. Using a large, disaggregated dataset covering 589 districts and employing structural equation modelling, it was found that a significant negative effect of density on COVID-19 confirmed cases and death rates. The findings suggest that cities, which are the hub of productive economic activities and resources for socio-economic development, must be enabled to effectively manage density rather than consider it a demon. They must be empowered to build a robust public health foundation, address health inequities, and develop resilience against future disasters.