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Globalisation has affected the industrial trajectories of developing countries, producing an increasing disarticulation between the management of production and regimes of labour control. While production regimes have been projected into the global arena, labour regimes have remained apparently anchored to regulatory mechanisms provided by local social structures, and gone through increasing processes of informalisation. Examining the case of the Indian garment sector, this paper argues that the informalisation of labour should not be conceived as necessarily taking place 'in the shadow of the state'. In fact, in the case presented here, the state was a strong active agency behind the process of informalisation, which it supported through formal policies and through its progressive alignment with the interests of capital. [ABSTRACT FROM AUTHOR]