The “rise” of India on the global economic landscape has been accompanied by the revival of debates regarding the role played by social institutions such as caste, religion and gender in shaping an individual’s life chances. This paper engages with this debate by looking at a micro-level case study of the occupational choices of Muslim ex-millworkers in Mumbai city. Religion as a social institution combined with negative emotions and a lack of political patronage creates barriers for Muslims in the labour market, compelling them to seek livelihood opportunities in a ghettoised economy.