This article highlights the changes that have taken place in the political economy of Ranikhera village between 1953 and 2008. Urbanisation is the key factor in transforming the village life. Agriculture has lost its traditional importance as a major source of livelihood. The social relations of production between the landowning Jajmans and landless servicing castes have been affected by opening up of new employment opportunities in the metropolitan city of Delhi. Many Dalits have ‘emancipated’ themselves from their earlier dependence on their Jajmans.

The movement of inhabitants from a squatter settlement to a resettlement colony can be perceived as a rise in the status of slum dwellers. The slum dwellers of the resettlement colonies now have a better housing with security of tenancy. Also, they earn more than before, both in relative and absolute terms.