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The informal economy in India provides more than 90 per cent of the labour force. This leads to the largest number of people in informal settings being trained informally and their skills are considered to be low. Previous research findings, however, have not supported this general assumption about low skill levels. The current study is concerned with the sub-sector of urban tailoring that has not yet been the focus of much research. The main questions of interest are: What kinds of skills do Indian tailors have and where and in what ways are these skills acquired? Twelve interviews with tailors were conducted in Delhi and ten in or near Vellore, Tamil Nadu. The results show clearly that tailors in the informal sector in India not only have a wide range of skills in tailoring, but also in organizing and running their business in economic terms.