Though many had expected that industrialisation would lead India to both a
modernisation of production and a universal 'freeing' of labour; this has n
ot happened. Instead new forms of tying labour are emerging. Simultaneously
labour relations are in a process of radical change because, though impove
rished labourers may still be tied by debt, tied relations today are very l
argely economic in content They are increasingly bereft of the extra-econom
ic control and coercion that rural employers used to exert over their labou
r forces. For this reason it is argued that, rather than a process of 'depr
oletariansation', it is a very slow and uneven process of the self-won eman
cipation of labour that is under way. These emancipatory processes are grea
tly endangered by policies that seek to deregulate labour, and for this rea
son the World Bank's uncritical endorsement of deregulation is found to be
deeply flawed.